Cities Applaud Increased CARES Act Funds in Budget Deal; Now Look to Secure Funding to Offset Billions in Revenue Losses from COVID-19

Jun 26, 2020


Contact: Kayla Woods, (530) 844-1744

Sacramento – Following the approval of the FY 2020-21 State Budget by the Legislature, the League of California Cities Executive Director Carolyn Coleman issued the below statement in reference to the budget decisions affecting cities, including the $500 million direct allocation to cities of the state’s CARES Act funding and the establishment of a minimum allocation of $50,000 per city. This represents an increase from the $450 million proposal in Gov. Gavin Newsom’s May Revision, which did not provide a minimum allocation for all cities.

“Since the beginning of the pandemic, cities have incurred millions of dollars in unanticipated emergency spending to protect their residents and prevent further spread of the virus. We appreciate the Governor and Legislature responding to calls to set aside a portion of the state’s CARES Act funding for cities that did not receive a direct share from the federal government. While these funds will not cover all of the expenses cities have incurred fighting COVID-19 and keeping our communities safe, they will provide meaningful resources to help offset those costs.

“Homelessness remains a top priority for city leaders throughout the state, and we also welcome the $300 million allocation for local governments to help those experiencing homelessness in our communities. It is critical that cities and the state remain committed to addressing this crisis that has only worsened since the pandemic began.

“Faced with devastating budget shortfalls, we recognize that the Governor and Legislature had difficult decisions about where to distribute limited resources. We will continue to fight at the state and federal level for resources to address the $7 billion general revenue shortfall cities are encountering. Cities have supported and protected our residents and businesses throughout the pandemic. Their actions saved lives and served as a model for the country. It is time for the state and federal government to step up and support our cities – the economic engines of our state – so that we can be a strong partner in kick-starting our economies and helping our communities recover from this crisis.”


Established in 1898, the League of California Cities is a nonprofit statewide association that advocates for cities with the state and federal governments and provides education and training services to elected and appointed city officials.