House lawmakers are working on separate and equal federal aid packages for counties and municipalities at the same time that the National League of Cities has doubled its federal aid request to $500 billion over two years. NLC’s director of federal advocacy predicted Tuesday that some small rural communities may have to opt for dissolution because of their dire revenue shortfalls related to the pandemic. Some assistance could be on the way through a “municipality fund” that would designate 30% of the federal aid for municipalities with populations less than 50,000. House Appropriations Committee Chairwoman Nita Lowey, D-N.Y., disclosed those plans in a “dear colleague” letter Monday. She said lawmakers are considering creating separate funds for direct aid to states, counties and municipal governments.
(Read more: The Bond Buyer)
