U.S. Representative John Garamendi, D-Calif., and U.S. Senator Kyrsten Sinema, D-Ariz., re-introduced landmark special districts legislation (H.R. 535 and S. 91, the Special Districts Provide Essential Services Act, on January 28 to provide special districts with direct access to future local government pandemic relief.
Representative Garamendi has called on all special districts to join in supporting the legislation and lobbying their Representatives in Congress to do the same. CSDA thanks Representative Garamendi and Senator Sinema, as well as Senator Dianne Feinstein and 14 members of the California Congressional Delegation for their original co-sponsorship and leadership on the bills.
CSDA, together with the National Special Districts Coalition is leading an effort to support the legislation. Districts interested in committing their support and joining future national support letters to congressional leadership may follow this link to submit their information at any time. Doing so would also urge the bills’ inclusion in a broader COVID-19 relief package currently being drafted in Congress.
The Special Districts Provide Essential Services Act would establish a federal definition for “special district.” It would require states to direct at least five percent of future Coronavirus Relief Fund (CRF) allocations to their special districts. States would have the discretion to establish their own programs to disburse the funds to special districts demonstrating pandemic-related need for relief. States would have flexibility to use excess funds, should the U.S. Treasury permit, after 60 days should special districts’ declared needs be met. The bills would also codify districts’ access to the Federal Reserve’s Municipal Liquidity Facility.
The CRF was established under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020. The $150 billion fund is eligible to state, territorial, tribal, county and city governments to reimburse certain expenditures made in response to the pandemic. Municipalities with populations greater than 500,000 received direct allocations from the U.S. Treasury, accounting for 45 percent of the total CRF. State received the remaining 55 percent, of which a portion is eligible to be granted to municipalities with populations fewer than 500,000. Unfortunately, language defining local governments’ eligibility for CRF in the CARES Act was exclusive of special districts. Per U.S. Treasury’s CRF guidelines, states, counties and cities can grant CRF allocations to constituent governments, which encompasses special districts. The Special Districts Provide Essential Services Act provides a solution to this problem.
Both the U.S. House and Senate bills are the same as the 116th Congress’ S. 4308, which was a bipartisan measure introduced by Senator Sinema in coordination with Senator John Cornyn. Altogether, legislative efforts last year garnered 43 House cosponsors and five Senate cosponsors.
CSDA will update members with more as this effort develops. For further resources to take action, visit the COVID-19 Take Action webpage or contact Cole Karr, CSDA Federal Advocacy Coordinator at colek@csda.net.
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