Kennedy’s bill to give states flexibility to use CARES funds included in next coronavirus package

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WASHINGTON – Sen. John Kennedy’s (R-La.) Coronavirus Relief Fund Flexibility for State and Local Government Act has been included in the Senate’s coronavirus relief package. The bill would give state and local governments more flexibility as they use funds provided by the Coronavirus Aid, Relief and Economic Security (CARES) Act.

“For months, state and local governments have been working under the weight of an incredible health crisis. Giving those governments the flexibility to help their communities weather this pandemic—by using money they already have—is a no-brainer. I’m glad to see this commonsense provision in the Senate’s relief package,” said Kennedy.

The Coronavirus Relief Fund Flexibility for State and Local Government Act would allow states and local governments to use CARES Act funding for operating expenses unrelated to the coronavirus. This bill does not allow officials to spend this CARES Act money on shoring up their pension funds.

The CARES Act established the $150 billion Coronavirus Relief Fund, which has provided payments to state, local, and tribal governments to help them respond to the coronavirus pandemic. Every state received at least $1.25 billion from this allocation.

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