Representative TJ Cox Introduces Bipartisan Legislation to Make States and Local Governments Eligible for Emergency Paid Leave Tax Credits

Statement

Today, Representative TJ Cox joined Representative Brad Schneider (D-IL-10) and Reps. John Katko (R-NY-24), Peter T. King (R-NY-2), and Diana DeGette (D-CO-1) to introduce bipartisan legislation that would make states and local governments eligible for the emergency paid leave payroll tax credits. This would give public organizations the same tax credits as private companies and help state and local budgets stretched thin by the COVID-19 pandemic.

The Families First Coronavirus Response Act passed by Congress last month greatly expanded Americans' access to paid leave by requiring public and many private employers to extend the policy to their employees. The law included payroll tax credits to offset the costs associated with paid leave for private employers, however it excluded public employers from being able to access them.

The Supporting State and Local Leaders Act would give public employers access to the tax credits to help state and local governments cover the costs associated with paid leave programs. The legislation currently has 108 bipartisan co-sponsors.

"State and local governments are on the front lines of this pandemic.  I am proud to support this bipartisan legislation extending the emergency paid leave payroll tax credits--which are already available to the private sector--to public employers.  This important fix to the Families First Coronavirus Response Act puts public employers on par with the private sector and will free up more resources for state and local governments to provide the critical services necessary for successful COVID-19 response," said Cox.

"Our states and local communities are leaders in our fight against the coronavirus, and they are being stretched thin on the frontlines of this crisis. Congress has to do more to support them during this pandemic. Allowing public employers like state and local governments and public schools, utilities, and transit agencies to access the same payroll tax credits available to private businesses is a straightforward and bipartisan way to help our communities during this time of need," said Schneider.

"Local governments have been at the forefront of our nation's effort to combat the COVID-19 pandemic, providing critical services to those in-need, supporting our hospital and healthcare providers, and relaying important information to keep our communities safe and healthy. However, with an economic crisis slashing revenue for many local governments, our county governments and municipalities are suffering -- and need relief now.  That's why I am proud to join Reps. Schneider, Cox, King, and DeGette in introducing bipartisan legislation to make state and local governments eligible for emergency paid family and sick leave payroll tax credits. Providing these payroll tax credits to offset paid leave expenses will ensure local and state governments are able to protect employees and continue their work to serve our nation during this crisis," said Katko.

"Our state and local governments are at the frontlines of this public health crisis. We have to make sure they are getting the support they need," said DeGette. "That includes making them eligible for the same emergency paid family and sick leave payroll tax credits that private sector employers can access."

The Supporting State and Local Leaders Act is endorsed by: American Council on Education, American Federation of Teachers, American Library Association, American Public Transportation Association, American Society of Civil Engineers, Association of Public and Land-grant Universities, Government Finance Officers Association, International City/County Management Association, National Association of Clean Water Agencies, National Association of College and University Business Officers, National Association of Counties, National Conference of State Legislatures, National League of Cities, National School Boards Association, State Higher Education Executive Officers Association, United States Conference of Mayors

"Our 3.6 million county employees are on the front lines of the coronavirus pandemic. These dedicated public servants support crucial county functions, including over 1,900 public health departments, nearly 1,000 hospitals, more than 800 long-term care facilities, 750 behavioral health centers and much more," said National Association of Counties Executive Director Matthew Chase. "Our costs are skyrocketing, and our revenues are plummeting. We estimate more than $144 billion in budget impacts related to our coronavirus response. The emergency paid leave payroll tax credit would provide much-needed support to counties, and we thank Representatives Schneider, Katko, Cox, King and DeGette for recognizing counties' role as key employers and service providers in our communities."