Public Finance Alert
Last week, following approval in the House and the Senate, President Donald Trump signed the Coronavirus Aid, Relief, and Economic Stabilization Act (or CARES Act) into law. The Act is slated to provide $2.2 trillion worth of relief to Americans and the U.S. economy amid the COVID-19 pandemic. The CARES Act is the third – and most expensive – action taken by Congress to date to address costs associated with the rapidly expanding pandemic. While the CARES Act has a hefty price tag, it fails to fully address many needs, including the needs of state and local governments which are experiencing increased costs and declining revenues while battling on the frontlines of the pandemic. As such there is a growing expectation that Congress will need to consider a fourth round of funding to more specifically address these shortfalls. Nevertheless, the infusion of funding from the CARES Act is an important, historic step in responding to the pandemic by providing expanded and extended unemployment benefits, tax rebates and other spending critical to addressing the economic slowdown resulting from the unprecedented “stay at home” and “shelter in place” orders in effect in cities and towns across the country.
The following is a short summary of certain key provisions of the CARES Act with a focus on the municipal finance industry and funding for state and local governments:
The summary above is not exhaustive and simply focuses on certain key provisions affecting the municipal finance industry and funding for state and local governments. A complete version of the CARES Act is available as a PDF here.
Orrick continues to monitor and review Congressional activity, as well as other matters related to COVID-19 and will continue to provide additional client alerts and updates as circumstances warrant. Additionally, Orrick is prepared to help clients navigate through this legislation and apply for and leverage or otherwise help clients use stimulus monies provided in the CARES Act.
For more additional information please contact your Orrick Public Finance Attorney.
 Final Version of CARES Act, p. 512.
 Final Version of CARES Act, p. 513-514.
 Final Version of CARES Act, p. 602.
 Final Version of CARES Act, p. 603.
 Final Version of CARES Act, p. 96-98.
 Final Version of CARES Act, p. 757-759.
 Final Version of CARES Act, p. 757.
 Final Version of CARES Act, p. 842.
 Final Version of CARES Act, p. 835-836.