Many cities, counties fear losing out on stimulus funding

 $2.2 trillion federal stimulus pack could fail to deliver bly needed financial aid to thousands of smaller cities and counties where a majority of Americans live, according to documents and interviews with local officials.

 coronavirus outbreak has blown holes in budgets of communities as costs of battling outbreak skyrocket and critical sources of revenue like sales and income taxes plummet.

Coronavirus Relief Fund uses a formula based on population to parcel out tens of billions of dollars to states while allowing local governments with more than 500,000 residents to apply directly to Treasury Department for cash infusions. But localities below half-million population threshold are in limbo.

Among those affected: New Rochelle, New York, one of cities hardest hit by outbreak.

“I cant understand logic,” said am Bramson, Democratic mayor of about 80,000 people. “Cities with fewer than 500,000 people have been just as heavily impacted as those with more than 500,000 people. It strikes me as a completely arbitrary cutoff.”

Amid uncertainty, lawmakers and vocacy groups that include National League of Cities and U.S. Conference of Mayors have been urging Treasury Secretary Steven Mnuchin to ensure relief fund money is fairly distributed. Guidelines for how relief fund will operate are slated to be issued by Treasury Department this week. department anunced Monday it h launched a web portal through which eligible parties could register to receive money.

“Because of lack of specificity in legislation itself, it really is up for interpretation,” said Irma Esparza Diggs, director of federal vocacy for National League of Cities. “Everybody’s just kind of holding ir breath until Treasury comes out with ir guidance."

Of nearly 3,100 counties in United States, 130 have populations of more than 500,000, according to National Association of Counties. re are 36 cities over half-million mark, National League of Cities told President Donald Trump in a letter last week. More than half country’s population lives in cities, towns and vills of fewer than 50,000 people, letter ted.

Cities including Miami and Kansas City, Missouri, are under cutoff, according to most recent Census Bureau figures available.

“Depending on who you believe, we’re eir at 470,000 or 510,000,” said Miami’s Republican mayor, Francis Suarez. “We’re projected to lose about $20 million a month while our ecomy has ground to a halt. state of Florida is slated to get $8.3 billion, but we’re t sure if we’re going to get any of it.”

Every state will receive at least $1.25 billion in relief fund money. state government gets biggest share of total — New York, for example, is projected to receive $7.5 billion, according to estimates prepared by nprofit Tax Foundation. state gets $5.2 billion of that amount, and local governments that have more than 500,000 residents are eligible for rest in direct payments.

Treasury Department guidelines may permit below--threshold counties and cities to appeal directly to goverr for a portion of state’s relief find allotment, according to Matt Chase, executive director of National Association of Counties. But that may heighten potential for political alliances to be formed in quest for money or behind--scenes lobbying campaigns to get a piece of state’s share.

“Each local government would have to go hat in hand to goverr and say, ’Can we have part of your allocation?'" said Chase, who ded, “We don’t need a lot of politics right w.”

population threshold was included as a treoff as lawmakers scrambled to put

senators expressed concern over comments Mnuchin me during a recent briefing for lawmakers on status of stimulus pack. Treasury secretary suggested department would interpret law narrowly and “issue guidance that unintentionally creates obstacles to states supporting ir front line,” senators said.

That’s at odds with Trump’s own promises that federal government would be re to backstop local and state officials, said Bryan K. Barnett, Republican mayor of Rochester Hills, Michigan, and president of U.S. Conference of Mayors.

“ word from ir lips to our ears is that this whole effort would be locally executed and federally supported,” Barnett said.

re are 16 states that have counties, cities or or municipalities with populations above 500,000, including Wyoming, Alaska and Montana. Without a mechanism that allows or requires states to share coronavirus relief money, re’s clear way to prevent m from keeping entire pot to help make up ir own budget shortfalls.

New York state has a deficit of more than $10 billion from fighting coronavirus, and $5.2 billion it’s to receive from relief fund could help close that gap.

Stephen Acquario, executive director of New York State Association of Counties, said those budgetary pressures me it unlikely local governments under population threshold will get any of state’s money.

“ states will exert jurisdiction over that money,

and thousands of local governments who will have needs, it will be very difficult to get that money,” Acquario said.

Cameron Diehl, executive director of Utah League of Cities and Towns, said state legislature is expected to meet in a special virtual session this week and on its nda is creation of a legal framework to accept $1.25 billion from relief fund. “re are a lot of questions about logistics, and it’s hard to plan around this much uncertainty,” Diehl said.

In Ohio, an income tax is one of primary ways that government is financed.

“If body is working, we’re t going to have any money,” said Dayton, Ohio, Mayor Nan Whaley.

“I just can’t explain to you level of frustration of mayors who are working so hard for ir communities and see that it could all go away because re’s help coming,” Democrat ded. “It’s just so painful for all of us.”