Letter to the Hon. Nancy Pelosi, Speaker of the House, and the Hon. Kevin McCarthy, House Minority Leader - Gottheimer, Sherrill Lead Bipartisan New Jersey Congressional Delegation Call for Cost-of-Living Adjustments to Coronavirus Stimulus Funds

Letter

Dear Speaker Pelosi and Minority Leader McCarthy:

As you consider further legislative packages to assist our communities that have been impacted by the novel Coronavirus (COVID-19) pandemic, we request that cost of living adjustments for localities are made when considering economic stimulus payments to residents and businesses. Doing so would help ensure that New Jersey residents are not erroneously excluded from needed assistance.

A study recently published by the St. Louis Federal Reserve, based on data provided by the U.S. Bureau of Economic Analysis, showed that New Jersey has one of the highest costs of living in the nation. In New Jersey, a household yearly income of $66,876 provides the same standard of living as a salary of $47,884 in Mississippi or $49,992 in Arkansas. Although this high cost of living means that average yearly salaries are higher for residents, it does nothing to mitigate the devastation the COVID-19 pandemic is having on the 8.9 million Americans and 861,373 small businesses that call New Jersey home.

On Saturday, March 21, 2020, New Jersey Governor Phil Murphy issued an executive order mandating that all non-essential retail businesses close and that state residents only leave their homes if necessary. Health experts agree that this is what is necessary to mitigate the spread of the Coronavirus and the strain the pandemic is having on our healthcare system. However, without the ability for people to work and spend money within the local economy, employees of small and medium-sized businesses will be particularly impacted. This health-related economic slowdown threatens the ability of New Jersey residents to pay for their housing, afford food, or purchase necessary products to protect their health during the pandemic.

We look forward to working with you further on this important matter and urge you to utilize all tools available to assist our local communities.