McSally calls for greater flexibility in CARES Act funding for state, local governments

U.S. Sen. Martha McSally (R-AZ) sent a letter Aug. 20 to Treasury Secretary Steven Mnuchin, calling for increased flexibility of CARES (Coronavirus Aid, Relief, and Economic Security) Act funding for states, tribes, and local governments.

Sen. McSally led the letter with 9 Republican colleagues, including U.S. Sen. Marsha Blackburn (R-TN).

Sen. McSally has been a strong advocate for state flexibility in discussions with White House and Senate leadership, according to the senator’s office. She has also continued to work with the Trump administration to deliver additional aid to Americans.

“In our respective states, we have heard from mayors, governors, and tribal leaders about the harmful impact the pandemic has had on local communities throughout the country,” the lawmakers wrote. “Meanwhile, they must continue to provide necessary and basic services to their population during these trying times. These essential services range from law enforcement and first responders to essential health providers to education and core services, and infrastructure, such as running water.”

The CARES Act allocated $150 billion for the Coronavirus Relief Fund (CRF) for states to use in response to the COVID-19 pandemic. However, restrictions on the funding and impending deadlines will result in billions of misdirected or even unused funds, the letter stated.

“Congress has already appropriated this money, and we should trust our local leaders to make the best decisions for their communities,” the lawmakers continued. The letter said the Republicans shared concerns that states and cities could take advantage of CRF funds to bailout budgets that have been mismanaged, and that Hyde amendment protections on CRF distributions should be preserved.

“We trust any new guidance will strike the appropriate balance while providing the flexibility communities need to spend on their most immediate needs during this crisis,” Sen. McSally and her colleagues wrote.