On Monday, House Appropriations Committee Chair Nita Lowey (D-New York) announced a proposal for the next phase of relief for the coronavirus (COVID-19) pandemic. Representative Lowey’s proposal will include two separate yet equal funds for counties and cities and will provide vital relief to address both lost revenue and increased expenditures as the result of the COVID-19 pandemic. On the Republican side, during their first face-to-face meeting after five weeks away from the Capitol, Senate Republicans engaged in a vigorous debate about whether to appropriate more money into state and local governments. Some Republicans were sympathetic to the sharp revenue losses experienced by states and municipalities whereas others want to hold the line amid the growing deficit concerns.
RCRC expects House Democrats and House Speaker Nancy Pelosi (D-San Francisco) to offer the first version of language for the next phase of relief funds, with the goal of giving the House leverage in negotiations with Senate Republicans. However, as legislative efforts to respond to the COVID-19 pandemic shift from immediate crisis response to longer-term economic and public health recovery plan, RCRC expects partisan discourse to return to pre-pandemic levels. As such, no agreement is expected to be reached on additional funding until at least the end of June.