A. For federal, state and local governments, continuity is non-negotiable. Governments across the country are not set up for remote operations and even require lawmakers to convene face-to-face, threatening the physical safety of leaders and continuity of government as public servants fall ill with COVID-19.
Federal, state and local governments should assess the specific risks that the pandemic poses to continuity and identify a core response team to lead crisis management efforts. Communicating consistently with both constituents and government employees helps stakeholders stay up to date about the response.
Reviewing current and potential disruptions to operations can help governments scenario plan for a range of circumstances in the short and medium terms. Assessing supply chain problems and options for diversifying also helps mitigate disruption as state governments take on the critical task of equipping their communities with the personal protective equipment, ventilators and testing required to reopen the economy. Reviewing current workforce needs and capabilities can inform governments’ options for transitioning temporarily to remote work by using secure cloud computing and collaboration platforms. Likewise, when it comes to workforce reintegration planning, prioritization and staging for a slow return to work is essential. Evaluating possible ways to move to remote election processes, if necessary, can ensure government continuity.
While a crisis management team should be formed, it will be a part of every official’s job to continuously help scenario plan and apply lessons learned to operations.
Many governments are facing liquidity issues as they increase spending to purchase medical equipment on behalf of hospitals, help schools transition to remote learning and create aid programs for constituents in need during this critical time. Yet fewer funds are coming in due to the tax deadline extensions, as well as decreased revenue from commercial and sales taxes.
Some municipalities are finding relief through interstate compacts to alleviate cost pressures which: a.) share ventilators across borders as virus hotspots of infection shift, and b.) reduce the price of testing and medical equipment by collaborating instead of driving up prices through bidding wars.
The largest source of relief is the CARES Act, which allocated $150 billion to the Coronavirus Relief Fund through the U.S. Treasury, which state, tribal, territory and local governments can apply for to cover costs related to the virus. The CARES Act, however, did not contain funding to offset the drastic state and local revenue shortfalls that state and local governments are experiencing across the country. Unlike the federal government, states cannot borrow to fund operations; they need direct federal aid that will allow for replacement of lost revenues.
The CARES Act also provides the Department of Education over $31B in total to distribute across state and local governments (including their educational agencies) and institutions of higher education. Funds have been split and will be distributed through formula-based grants within three of the Department of Education grant programs: The Governor’s Emergency Education Relief Fund, the Elementary and Secondary School Emergency Relief Fund, and the Higher Education Emergency Relief Fund.
The Federal Transit Authority (FTA) is providing $25B in grants funded through the CARES Act for recipients of FTA’s typical urbanized area and rural area formula funds. Funds are intended to help support the transit industry during the public health emergency, providing replacement revenue to account for sharp declines in ridership across the standard lines of public transit.
States will also receive a variety of allocations from the Department of Housing and Urban Development (HUD) as part of the CARES Act relief programs, including a share of $5B to the Community Development Block Grant (CDBG) program; $4B for homeless assistance grants; $1.25B for tenant-based rental assistance, providing additional funds for public housing agencies for Housing Choice Vouchers; $685M for public housing; and $65M for the Housing Opportunities for Persons with AIDS (HOPWA) program.
The USDA is developing a $19B relief program to provide funding to support American farmers and ranchers, maintain the integrity of food supply, and “ensure every American continues to receive and have access to the food they need.” As a part of this program, the USDA introduced expanded flexibilities and waivers for states in administering SNAP and other programs to enable children and families to get needed food during the national emergency. Nationally, $15.5B in additional funding is available for the SNAP program and $8.8B is provided for child nutrition programs.
Finally, as a last resort for source of funding for state, local, tribal and territory governments, the FEMA Public Assistance grants for emergency and protective measures are available, which can cover 75% of eligible work and associated costs starting from Jan. 20, 2020 onwards. Governments must meet eligibility criteria to receive these funds, as well as federal compliance criteria for grants management such as 2 CFR 200 and the Stafford Act.