CLAWING BACK BACK AMERICAN RESCUE PLAN FUNDING IS HIGHLY UNPOPULAR, WOULD HARM STATE ECONOMIES

POLLING: 63% of Voters, Including 64% of Independents and 52% of Republicans, Prefer Funding Infrastructure Investments Through Corporate Taxes Over User-Fees And Raiding Pandemic Relief Funds

U.S. Conference of Mayors, National League of Cities, and National Association of Counties and a Coalition of State Treasurers Have All Opposed Republicans’ Plan to Fund Infrastructure by Raiding American Rescue Plan Funds for States, Localities, and Essential Workers

President Biden’s American Jobs and Families Plans would create millions of good-paying jobs for working families, and pay for it by making those earning over $400,000 and big corporations pay their fair share, including by ending deductions companies now get for shipping US jobs overseas.

But Senate Republicans would rather protect their corporate donors and shift the cost of infrastructure onto working families and essential workers by clawing back crucial Covid relief funding in the American Rescue Plan, which transformed options for struggling state and local governments and currently keeps essential workers like firefighters, EMTs, and teachers on the job. 

State and local officials strongly oppose Republicans’ plan to raid Covid relief funding that was meant to keep essential workers on the job, support vaccination efforts, and to open schools safely — and so do voters across party lines

  • 14 state treasurers signed a letter urging their congressional delegations to reject Senate Republicans’ plan to raid the American Rescue Plan’s relief funding, which would jeopardize U.S. economic recovery at precisely the moment when lawmakers must continue to invest to jumpstart the economy.
  • The U.S. Conference of Mayors, National League of Cities, and National Association of Counties wrote a letter to Congressional leadership adamantly opposing any infrastructure proposal that would hurt local governments by raiding the American Rescue Plan’s state and local relief funding.
  • 63% of Voters, including 64% of Independents and 52% of Republicans, prefer funding infrastructure investments through corporate taxes over user-fees and raiding pandemic relief funds.

Raiding the American Rescue Plan’s Covid relief funding would shortchange economic recovery in the states. 

  • Underfunding the economic recovery in the states would put a drag on the country’s economy. In 2009, Republicans cut billions of dollars of state and local aid from the American Recovery and Reinvestment Act, and the results were devastating: 
    • States were forced to make disastrous cuts to education. Ten years after the great recession, state financial spending for higher education was still down 13%. In 2016, funding for K-12 education was lower in 29 states than it had been in 2008 — down at least 10% in nine of those states.
    • In the wake of the recession, state aid to localities was down by 5.3% — putting a strain on local budgets and exposing cities to greater risk of financial problems.
    • Overall, it took nearly a decade for state and local governments to return to pre-crisis employment levels. 
  • Repurposing the American Rescue Plan’s Covid relief funding would result in a massive loss of revenue for large and small communities alike, at precisely the moment they need to be doing everything to get our economy going again
    • Funding from the Plan is enabling large cities, small towns and rural communities alike to get back on their feet despite significantly lower tax revenues.
    • These funds are keeping police, teachers, and firefighters on the job, addressing cyber security and technology challenges exposed by the pandemic, and keeping programs and systems in place that Americans across the country rely on.

View how each state is benefiting from the $350 billion in state and local aid in the American Rescue Plan here

 

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