U.S. Sen. Bill Cassidy (R-LA) on May 18 unveiled the bipartisan, bicameral State and Municipal Assistance for Recovery and Transition (SMART) Act, which would create a $500 billion COVID-19 recovery fund for states and local communities.
“States and local communities shut down when the federal government asked and then lost billions in sales tax and other revenue,” Sen. Cassidy said. “These states, communities either lay off workers or they get help. The SMART Act helps.”
Sen. Cassidy is the lead original cosponsor of S. 3752 with bill sponsor U.S. Sen. Bob Menendez (D-NJ). The legislation would create a $500 billion fund to help state, local, and tribal governments through the economic crisis so they can avoid layoffs, tax hikes and reduced essential services. U.S. Reps. Fred Upton (R-MI) and Mikie Sherrill (D-NJ) on May 19 introduced the same-named H.R. 6954 in their chamber.
“The SMART Act keeps the thin blue line, firefighters and teachers from being casualties of COVID-19,” said Sen. Cassidy. “It keeps our communities alive.”
If enacted, the measure would build on the $150 billion set aside in the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help state and local governments and would eliminate the current 500,000 population threshold so that every state, county, municipality, U.S. territory, and the District of Columbia could qualify for direct federal assistance, according to a bill summary provided by Sen. Cassidy’s office.
Louisiana’s local governments could incur losses of more than $787 million in property tax, sales tax and mineral revenue, according to John Gallagher, executive director of the Louisiana Municipal Association.
“The SMART Act would provide funding for municipal economic recovery that will support the reopening of businesses and allow Louisiana to move forward together. We are grateful for Senator Cassidy’s bipartisan efforts and for his longstanding partnership with Louisiana’s municipal governments and the LMA,” Gallagher said.
Among the members who joined Sen. Cassidy in cosponsoring S. 3752 is U.S. Sen. Susan Collins (R-ME), who said Maine’s economy could be among the worst in the nation hit by the pandemic.
The SMART Act would provide “Maine’s state and local governments with flexible funding that can be used to directly offset some of their plummeting revenues,” Sen. Collins said. “Congress must act now to protect vital services and to prevent widespread furloughs of state and local public servants, including police, firefighters, medical professionals, and educators.”