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Plans to aid cities and states

Q

Unless Congress sets aside at least $200 to $300 billion to help states, they will start to default and many other problems will follow. Your thoughts?

J.K.

A

James A. Klotz responds:

The Feds also have similar concerns, but they have a plan to address them.

A Federal Reserve spokesperson has announced that its municipal short-term lending program will be up and running in a matter of weeks, not months.

According to Fed Vice Chair Randal Quaries, he expects the Fed’s Municipal Liquidity Facility, as well as its Main Street Lending Program to also be open in a matter of weeks.

Additionally, Congress is developing another round of fiscal stimulus, which includes approximately $700 billion of aid to states and municipalities.

May 14, 2020

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