ROUNDUP: OPPOSITION GROWS TO RAIDING AMERICAN RESCUE PLAN FUNDS IN GANG OF 10 DEAL

National Council of Nonprofits: “It is imperative that you reject any attempt to claw back or reclaim ARPA funds at the devastating expense of charitable nonprofits”

14 State Treasurers: ”Repurposing covid relief funding would result in a massive loss of revenue for large and small communities alike”

U.S. Conference of Mayors, National League of Cities, National Association of Counties: “Despite the obvious and critical need for these dollars, there have been recent Congressional proposals to clawback these funds. We oppose these proposals”

More voices are joining the chorus opposing the Republican proposal in the Gang of 10 deal to steal American Rescue Plan funds — funds that are currently intended for small businesses, rural hospitals, and helping state and local governments keep essential workers like firefighters, EMTs, and teachers on the job.

National Council of Nonprofits 

President and CEO Tim Delaney and board Chair Marnie Taylor in a letter to Congress

“The recovery is not assured; many people, communities, and the organizations that support them continue to suffer from the pandemic’s aftermath. The State and Local Fiscal Recovery Funds must be used for their intended purpose of securing a full and complete recovery… Clawing back those funds would deny nonprofits their best and likely last chance to achieve any degree of parity and fairness… It is imperative that you reject any attempt to claw back or reclaim ARPA funds at the devastating expense of charitable nonprofits serving your constituents and all Americans, every day.”

State Treasurers

14 state treasurers in a letter to Congress organized by Invest in America Action: 

“Repurposing 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. Congress must honor its commitments to its people, to our states, and our local communities. We must ensure a sustainable, equitable recovery from the pandemic — and commit once and for all to keeping the entire country’s recovery as our top priority.”

The U.S. Conference of Mayors, National League of Cities, and National Association of Counties

CEOs and Executive Directors of the above groups in a letter to Congress

“America’s cities and counties — who are on the front lines of this pandemic — have been working hard since enactment of the American Rescue Plan Act to develop implementation plans that will help spur an equitable economic recovery across the nation. Local governments are using these critical recovery funds to invest in public safety, vaccine distribution, housing and rental assistance, local economic support, economic and workforce development, broadband expansion, social safety-net services, hospitality and tourism development, and hazard pay for public employees. Despite the obvious and critical need for these dollars, there have been recent Congressional proposals to clawback these funds. We oppose these proposals, both in general and as a pay-for for infrastructure.”

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

###