Budgets have been further strained by spending on social assistance programs, like unemployment, and other pandemic-related costs, like safety measures in public buildings. Democrats had made state aid a priority for a second round of stimulus, a demand that became a sticking point with Republicans. A centrist group of senators, trying to break the impasse, had included $160 billion in a direct stream of aid for state and local governments as part of a compromise bill. It is expected to include money for public transit authorities and potentially additional emergency assistance for state and local governments, though Republicans are opposing that aid, which would run through the Federal Emergency Management Agency. The compromise is also expected to include billions of dollars for education and health programs, which state and local governments will most likely help distribute.

Source: New York Times December 17, 2020 23:26 UTC