Congressman Panetta Calls on Governor Newsom to Provide COVID-19 Relief Funds to Local Governments

SALINAS, CA – Congressman Jimmy Panetta (D-CA-20) sent a bipartisan letter to California Governor Gavin Newsom calling for the state to use its allocation from the Coronavirus Aid, Relief, and Economic Security (CARES) Act Coronavirus Relief Fund to assist small and local governments on the front lines fighting COVID-19. He was joined by Representatives Salud Carbajal (D-CA-24), Paul Cook (R-CA-08), Jared Huffman (D-CA-02), Doug LaMalfa (R-CA-01), and Mike Thompson (D-CA-05).

"Localities in our congressional districts fall under the population threshold for direct assistance from this fund and they are in dire need of financial assistance, now. We have been working closely with our local governments, along with our state and local elected officials, to bring federal relief funds to our communities as quickly as possible. We respectfully urge you to provide swift guidance to local governments with populations under 500,000 regarding when and how they can access any transfer of funds from the state from its Coronavirus Relief Fund allocation," the members wrote.

Localities with populations under 500,000 did not receive direct assistance from the State and Local Coronavirus Relief Package in the CARES Act. Congressman Panetta continues to advocate for relief for smaller local governments both directly in future relief packages and through existing state funding.

The full text of the letter can be found below and here:

Dear Governor Newsom,

Thank you for your leadership in guiding the state of California during this unprecedented COVID- 19 pandemic. As communities across California continue suffering the devastating health and economic impacts of coronavirus, we write to inquire into the state's plans to use its allocation of federal aid from the Coronavirus Relief Fund to assist small and mid-size local governments at the forefront of the local response to this public health crisis.

As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), signed into law on March 27, 2020, Congress created a $150 billion Coronavirus Relief Fund to provide economic stabilization assistance to states and local governments. It was the intent of Congress for these funds to help every community across the country, both big and small, giving states the power to transfer funds to local governments of any size. California's allocation from this fund is $15.3 billion, with localities serving populations of at least 500,000 eligible to receive a share of aid directly from the U.S. Treasury.

Localities in our congressional districts fall under the population threshold for direct assistance from this fund and they are in dire need of financial assistance, now. We have been working closely with our local governments, along with our state and local elected officials, to bring federal relief funds to our communities as quickly as possible. We respectfully urge you to provide swift guidance to local governments with populations under 500,000 regarding when and how they can access any transfer of funds from the state from its Coronavirus Relief Fund allocation.

Understanding that there are improvements to be made at the federal level, we are working hard in Congress to secure additional relief funds for states and local governments; provide local governments of all sizes the ability to receive direct federal assistance; and ensure flexibility for this funding to replace losses incurred as a result of the COVID-19 pandemic.

Thank you in advance for your prompt attention to this matter. We look forward to working together to help all our communities respond to this public health crisis.

Sincerely,