NLC letter urges Congress to increase Medicaid match and infrastructure investment funds
The “Big 6” local government associations are asking Congress to include more support for local governments in its efforts to rescue the economy. In a letter to Congressional leaders, including Rep. Nancy Pelosi and Sen. Harry Reid, the Big 6 asked that the federal government temporarily increase its matching rate for Medicaid and appropriate additional funds for infrastructure investment.
Comprising the Big 6 are the Washington-based National League of Cities (NLC), National Governor’s Association, National Conference of State Legislatures, National Association of Counties, International City/County Management Association and the Lexington, Ky.-based Council of State Governments. In their letter, the Big 6 say that as many as 27 states face budget shortfalls of about $26 billion as a result of lost revenue from declining property, sales and income taxes, forcing many to cut their services. “Providing federal funds directly to state and local governments allows them to reduce cuts and continue services,” the letter states. “Most economists agree that this is one of the most effective countercyclical tools the federal government can implement.”
The entire letter is available at