DeGette unveils bipartisan legislation to help local governments provide paid leave

WASHINGTON, D.C. — U.S. Reps. Diana DeGette (D-CO), TJ Cox (D-CA), Brad Schneider (D-IL) and John Katko (R-NY) unveiled bipartisan legislation today that would make state and local governments eligible for paid leave payroll tax credits for employees who are affected by coronavirus.

While the Families First Coronavirus Response Act gave millions of American workers access to emergency paid sick leave and family and medical leave, state and local governments were left out of the federal program that is reimbursing private sector employers for those costs. Without these tax credits, the costs of providing paid leave could undermine successful local coronavirus responses, especially at a time when state and local governments are struggling due to reduced tax revenues caused by the economic fallout of the coronavirus pandemic.

The legislation introduced today by DeGette and others – which lawmakers hope to include in the next major coronavirus response package – would help alleviate the financial strain now being felt by local governments.

"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."

If this legislative fix is not approved by Congress, the Congressional Budget Office estimates that the new paid leave requirements will cost state and local governments nearly $20 billion in the next two years.

"Denver isn't alone in shouldering the burden of protecting residents and providing services, while this administration inhibits the testing and safety equipment we so desperately need," said Mayor Michael B. Hancock. "Cities across the country are redeploying every asset and employee available to fill the gaps in the federal government's response, and those employers deserve these much needed payroll tax credits."

The legislation is supported by a number of organizations including the United States Conference of Mayors, the International City/County Management Association, the National Association of Clean Water Agencies, the National Association of Counties, the National Conference of State Legislatures, the National League of Cities and the National School Boards Association.

A copy of the legislation filed today is here.