Three ways US Heroes Act can help rescue states and cities, including Tacoma

Across our region, the COVID-19 pandemic is putting extraordinary strain on the health care system, the economy and families.

In Washington, we’ve seen more than 17,500 confirmed cases of coronavirus and over 950 deaths. As we have worked to limit the virus’ spread and keep communities healthy, our economy has had to endure necessary but stunningly difficult restrictions.

While these actions have limited the number of new people getting sick and helped flatten the curve, the toll on our economy has been severe. Small businesses have seen sales crumble. Families have justifiably focused their spending on essentials.

That reduced economic output is contributing to major losses in revenue streams that support essential services provided by state, local and tribal governments.

In Tacoma, we’re seeing a projected $64 million revenue reduction for 2020. The city instituted hiring freezes, cancelled one-time initiatives and capital projects not directly supporting essential services, and tapped into savings and reserves.

The city also offered early retirement incentives, enacted executive pay reductions through furloughs and temporarily laid off more than 250 employees. Additional reductions may be necessary.

And it’s not just Tacoma. State government is expecting a $6.6 billion shortfall over three years. Budget shortfalls are expected all across the state and country.

That’s particularly concerning because the individuals on the frontlines of this crisis, the ones who are keeping us safe – the health care workers, police, fire, EMS, educators, transit drivers, and other vital workers – are at risk of losing their jobs.

Ultimately, the federal government needs to step up and provide immediate and direct support for those on the frontlines.

First, Congress should provide funding for local and state governments. Cities are essential – not just because of the crucial services they provide each day, but also because the federal government has called for a locally executed coronavirus response.

Second, Congress should expand the payroll tax credit to offset the cost of new paid leave requirements to include public employers.

The CARES Act requires all public employers, including the City of Tacoma, to provide paid sick and family leave, yet the law excludes these same employers from receiving payroll tax credits available to private employers.

People shouldn’t have to choose between jobs and paychecks, and the federal government should help cover those costs.

Third, matching requirements for emergency disaster aid from the Federal Emergency Management Agency should be waived.

Without this waiver, state and local governments have to provide at least 25 percent matching funds to access FEMA’s federal relief funding, an impossible task in the face of skyrocketing expenses and shrinking revenues caused by the ongoing public health emergency.

That’s why we have called on the president to waive this requirement, as he has for New York.

The Heroes Act, passed by the House on Friday, would address each of these priorities: providing dedicated relief to ensure communities have the resources necessary to continue fighting the COVID-19 pandemic; helping state and local governments cover costs associated with leave programs; and enabling communities to access important FEMA relief funds without the burden of mandated matching requirements.

But in order for these to take effect, the Senate must also pass this bill to get it to the president’s desk for his signature.

The COVID-19 pandemic is the biggest public health crisis of our lifetimes – and it’s proving to be the largest economic challenge since the Great Depression. We need a coordinated federal strategy to help our communities survive this.

We’re committed to supporting public employees here in Tacoma and across our state who are on the front lines and working day and night to help our nation recover.

To continue to support those hardworking folks, the federal government must step up.

Derek Kilmer, D-Gig Harbor, is in his fourth term representing Washington’s 6th Congressional District. Victoria Woodards was elected in 2017 to her first term as Tacoma mayor.