Following Appeal From National Urban League, Fed and Treasury Expand Municipal Relief to Cities with Significant African American Populations

NEW YORK (April 28, 2020) -- National Urban League President and CEO Marc H. Morial today commended federal officials who heeded the League’s call to adjust regulations so more mid-sized cities can be eligible for relief.

“Black Americans are bearing the brunt of the devastating impacts of COVID-19, but many of the cities where they live – struggling economically even before the pandemic hit -- were shut out of programs meant to deliver relief,” Morial said. “This welcome decision on the part of the U.S. Treasury and the Federal Reserve will help direct aid where it is most needed.”

Following an appeal from the National Urban League, the Federal Reserve and U.S. Treasury yesterday lowered the population threshold for participation in its liquidity facility concerning municipal debt, allowing aid to flow to many of the hardest-hit communities such as Milwaukee, Charlotte and Memphis.

Morial thanked U.S. Treasurer Steve Mnuchin, Federal Reserve Chair Jerome Powell and House Financial Services Committee Chair Maxine Waters for their efforts.

“Recovery from the economic catastrophe wrought by the pandemic requires cooperation among every level of government, industry and community-based organizations,” Morial said. “Readjusting the eligibility for the Municipal Liquidity Facility is a reassuring sign that the federal government is working responsively with municipalities and advocates.”

Earlier this month, the National Urban League raised the alarm after noting that many cities with significant African-American and minority populations, ineligible for direct grants or not fully funded under the CARES Act, also were excluded from the Municipal Liquidity Facility (MLF) established to offer up to $500 billion in lending to states, cities and counties.

“These smaller cities typically have a more narrow economic base than larger areas, have weaker infrastructure, and grossly inadequate health care facilities,” Morial wrote in a letter to Mnuchin and Powell. “Such communities lagged in recovering from the impact of the Great Recession. They are desperately in need of liquidity to help cope with the broad economic disruption imposed by COVID-19.”

Yesterday’s move allows counties with a population of at least 500,000 residents and cities with a population of at least 250,000 to sell short-term debt directly to the MLF. The original threshold was two million for counties and one million for cities.

The National Urban League and its network of 90 affiliates have responded to the coronavirus crisis with an advocacy and service campaign, The Urban League Fights For You. For more information, visit www.nul.org