MANCHESTER, NH - Today, Representatives Chris Pappas (NH-01) and Annie Kuster (NH-02) continued their call for House leadership to include robust funding for local governments in the next COVID-19 response package. The representatives joined with mayors, county commissioners, and town officials from across the state to send a letter to House leadership urging them to ensure local governments have access to federal aid moving forward. 

The sharp economic downturn brought on by the COVID-19 pandemic is expected to produce a significant reduction in state and local tax revenue across New Hampshire. Currently, a provision of the CARES Act bars communities with populations below 500,000 from accessing direct federal aid. No unit of local government in New Hampshire state currently exceeds this threshold. Because of this unfair and unnecessary limitation, all of New Hampshire has effectively been cut off from direct federal support for local communities.

“New Hampshire has experienced widespread economic hardship due to the COVID-19 pandemic and our cities and towns have been severely impacted. Unfortunately, without assistance some local governments across our state may be forced to cut back on essential services and lay off workers who are needed to respond to this crisis and help with recovery,” said Congressman Pappas. “For these reasons, I urge Congress to provide robust funding for local governments in the next COVID-19 response package in order to ensure that small to mid-sized municipalities and counties can access direct federal assistance.”

“I’ve heard from communities across New Hampshire about both the costs associated with their response to the COVID-19 crisis as well as the serious concerns about revenue shortfalls that are expected in the coming months,” said Congresswoman Kuster. “Ensuring that our cities, towns, and municipalities are able to continue to deliver important services and function effectively is crucial to our recovery from the coronavirus pandemic. Smaller municipalities like those we have here in New Hampshire cannot be left behind in the federal response to COVID-19. I urge Congressional Leadership to heed the call of Granite State communities and ensure financial support for smaller municipalities moving forward”

“The COVID-19 crisis has placed an unprecedented strain on our county budget,” said Toni Pappas, Hillsborough County Commissioner. “In order to effectively combat this crisis and continue providing essential services to our residents we need to be able to access additional federal funding. I’m grateful for our Representatives’ leadership in calling on Congress to include robust support for local governments in future federal legislation.”

“In just the eight weeks since the governor first issued the State of Emergency, towns and cities have seen significant increases in expenses and even more dramatic declines in revenues. But the financial impact they are experiencing now is just beginning.” said Margaret M.L. Byrnes, Executive Director of the New Hampshire Municipal Association. “Unknown long-term costs and potential decreases in other revenue sources are creating anxiety and uncertainty for towns and cities, and many towns are scrambling to figure out what they can do to reduce already-adopted budgets or take other action to take the pressure off their taxpayers. Prompt action is required to support municipalities and to recognize that local government plays an important role in the economy.”

The full letter can be read here:

Dear Speaker Pelosi and Minority Leader McCarthy:

The COVID-19 pandemic has caused widespread economic hardship in New Hampshire.  In addition to the loss of jobs and shuttering of small businesses, the sharp economic downturn brought on by the virus is expected to produce a significant reduction in state and local tax revenue. Unfortunately, this shortfall could force cities and towns across our state to drastically curtail essential services and lay off workers at the worst possible time for our communities. For the sake of the citizens we serve, we therefore respectfully request that you provide robust funding for local governments in the next COVID-19 response package and take action to ensure that small to mid-sized municipalities and counties can access direct federal assistance.        

The increased costs and severe decline in revenue stemming from the pandemic are already forcing local governments in our state to grapple with tough choices. A recent survey of 127 towns and cities in New Hampshire (54%) estimated that COVID-19 related expenses have collectively exceeded $7.6 million over the past five weeks, with that number expected to rise to $27.2 million by the end of this year. These costs cover everything from overtime pay, equipment, and emergency response for police officers and firefighters to increased demand for social services and welfare services. In addition, the estimated financial impact to counties is $13 to $17 million over the next 6 months. Absent a dramatic increase in aid from the federal government, we will be forced to contemplate deep budget cuts that will undermine the safety, security and well-being of the communities we serve.    

Unfortunately, our ability to meet the challenges posed by COVID-19 is significantly hindered by a provision of the CARES Act that bars communities with populations below 500,000 from accessing direct federal aid. No unit of local government in our state currently exceeds this arbitrary threshold – Hillsborough County, the largest county in New Hampshire, has a population of only 406,000. Because of this unfair and unnecessary limitation, all of New Hampshire has effectively been cut off from direct federal support for local communities at a time when our budgets have come under unprecedented strain.  

But even more troubling is the loss in revenue that towns and cities are experiencing and will continue to experience. Although CARES Act funding and other funds like FEMA can be used for expenses directly related to COVID-19, no current funding source addresses revenue replacement for local governments. According to the survey, 58% are already experiencing revenue declines—and the worst is yet to come, as property tax payment delinquencies are expected to increase significantly, further straining municipal budgets. The effects will be long-term and significant, leading to further cuts in public services and public sector employment in the months to come. Borrowing is an option for some towns and cities, but borrowing brings with it new costs for municipalities and their taxpayers as well. However, even the municipal bond market has been severely impacted by this crisis, and may not even be available to all localities.

For these reasons, we strongly urge you to provide direct relief to struggling local governments of all sizes commensurate with the scale of the dire fiscal, economic, and public health challenges we face. Indeed, without generous assistance from the federal government, counties and municipalities across our state will find it increasingly difficult to provide the services that keep our residents healthy and safe. Simply put, it would be completely unacceptable for the federal government to stand idly by as local governments across our state and our nation are forced to lay off first responders, health care professionals, sanitation workers, educators, and other critical public employees in the midst of a pandemic and a crushing economic downturn.        

Thank you for your urgent attention to this request and for your leadership during this difficult time.

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