States Are Providing Aid for Residents Despite the Congressional Gridlock

• Author: Mary Singleton
• Posted: 2024-06-08

The throes of wintry weather are upon us, and household income may fall off a cliff before the end of the year. Several programs from the CARES Act are coming to an end - rental assistance, eviction moratorium, student loan deferment, and unemployment aid. Although the stock market is booming, many small businesses will need extra financial support to make it through to spring.

Congress has yet to make significant inroads for the next stimulus package as negotiations remain tight and precarious. Many states are taking it upon themselves to provide their citizens with financial rescue packages for the new year.

New Mexico, New York City, Alaska, California, Colorado, and Maryland are some of the cities and states which will inject fresh aid into the economy. Citizens can expect to receive additional unemployment benefits, housing assistance, and stimulus checks. Small businesses will have access to interest-free loans and grants.
 

COVID Relief Talks

Amidst all the talks, Congressional Leaders Mitch McConnell and Nancy Pelosi negotiate on the next stimulus package's size and scope. McConnell said he wanted a smaller package of $500 billion. However, this package allocated $288 billion for the PPP - paycheck protection program and EIDL grants.

Americans were only getting close to $100 billion for unemployment assistance, a one-month extension of the pandemic unemployment benefits program. The proposal had no stimulus checks for Americans and no enhanced unemployment benefits.

Most members of Congress support the $908 billion proposed stimulus package. Even though it does not include stimulus checks, the unemployed would receive $300 a week in enhanced unemployment benefits for the next four months.

The new president-elect said he would consider the package a "down payment" on future aid. In like manner, many members of Congress said the current president would support the larger aid package. Households would get a one-month deferral on student loan repayments.
 

Colorado

Colorado is giving its residents a one-time boost of $375. Workers who receive $25 to $500 a week in unemployment benefits from March 15, 2020, to October 24, 2020, would be eligible for stimulus payments.

About 435,000 residents are eligible for the grants. According to Polis and the state labor department, Colorado has spent $77 million on aid. So far, 213,000 people have obtained their payments.
 

New York City

Mayor Bill DeBlasio and Small Business Services Commissioner Jonnel Doris announced a $35 million fund for small businesses that operate in low-to-moderate income neighborhoods this past week. Companies that have less than 99 employees would have access to interest-free loans up to $100,000.
 

California

Governor Gavin Newsom announced that California had created a new $500 million grant fund for small business assistance. The grants are for businesses and non-profits that reside in underserved communities. Recipients would receive $25,000 in grants next year.
 

New Mexico

Democratic Governor Michelle Luhan Grisham agreed to a generous $330 million aid package for her state's citizens. Unemployment recipients would receive a $1,200 stimulus check, and small businesses would have access to $100 million in grants.

The package also contains $15 million in housing assistance and $5 million in emergency aid for food banks. Roughly 100,00 workers received jobless benefits last month.
 

Alaska

Republican Governor Mike Dunleavy has released $20 million from the CARES Act to assist struggling businesses. Weeks-long lockdowns have hampered business activity in the state.
 

Minnesota

The tourism sector in Minnesota is suffering. Governor Tim Walz is in discussion with state Republican leaders in the House to develop a viable proposal.

Walz has announced a 13-week extension in unemployment benefits, $500 in one-time aid to families, and $1 million in grants for businesses that function in the tourism sector.

Walz said that "We need Congress to act immediately to help keep our businesses afloat, our workers paid, and our families with food on the table."
 

Maryland

Households who are close to eviction will have access to housing grants. Governor Larry Hogan agreed to $19 million in aid to prevent evictions across the state. The grants would help 3,600 households in 17 jurisdictions.
 

The CARES Act

Many more states may help their residents with leftover CARES Act funding. States must balance their budgets and spend their CARES Act funds by December 30, 2020, in the absence of an extension by Congress. They cannot operate in deficit spending like the United States. Governor Leachman said, "I see states doing everything they can" to assist residents.