A Network of the National Association of State Treasurers
Advocacy Letter:

PFN Letter Opposing Language to Limit Fed’s 13(3) Authorities

Federal Reserve Bank building in Washington, D.C.

NAST joined a broad coalition letter from the Public Finance Network (PFN) opposing the addition of proposed language that would limit the Federal Reserve’s abilities to create facilities that are similar to those created this year using funds from section 4029 of the CARES Act, including the Municipal Liquidity Facility (MLF). The language would severely limit the Federal Reserve’s ability to respond in a timely manner to a future market dislocation.

The letter can be read below and is accessible via PDF here.

 Government Finance Officers Association 
American Planning Association 
American Public Gas Association 
American Public Power Association 
American Society of Civil Engineers 
American Water Works Association 
Bond Dealers of America 
International City/County Management Association 
National Association of Bond Lawyers 
National Association of Counties 
National Association of Health and Educational Facilities Finance Authorities 
National Association of Regional Councils 
National Association of State Treasurers 
National League of Cities 
Native American Finance Officers Association 
The Council of State Governments 
The United States Conference of Mayors 

December 18, 2020

The Honorable Mitch McConnell 
Majority Leader, U.S. Senate 
317 Russell Senate Office Building 
Washington, D.C. 20510 

The Honorable Charles Schumer 
Minority Leader, U.S. Senate 
322 Hart Senate Office Building 
Washington, D.C. 20510 

The Honorable Nancy Pelosi 
Speaker, U.S. House of Representatives 
235 Cannon House Office Building 
Washington, D.C. 20515 

The Honorable Kevin McCarthy 
Minority Leader, U.S. House of Representatives 
326 Cannon House Office Building 
Washington, D.C. 20515  

Dear Senator McConnell, Speaker Pelosi, Senator Schumer and Congressman McCarthy: 

On behalf of the state, local and tribal governments and public entities we collectively represent, we urge you to oppose the inclusion of language in COVID relief legislation that would block the Federal Reserve from creating lending facilities that help small businesses and state and local governments. The financial challenges of this pandemic combined with other expired assistance from our federal partners is further exacerbated by a proposal being considered for inclusion in COVID relief legislation to restrict the Federal Reserve’s emergency lending authority after December 30, 2020. We strongly believe that doing so would hinder our ability to continue our ongoing response to the COVID-19 pandemic and our future recovery. 

Stripping the Federal Reserve of its ability to quickly respond to market dislocations or downturns will hamstring our recovery and further impede governmental entities’ ability to carry out their critical roles in responding to this pandemic. 

We strongly urge you to oppose including such language in the relief legislation. 

Sincerely, 

  • Government Finance Officers Association, Emily Swenson Brock, 202-393-8467 
  • American Planning Association, Jason Jordan, 202-349-1005 
  • American Public Gas Association, Doug MacGillivray, 202-464-2742 
  • American Public Power Association, John Godfrey, 202-467-2929 
  • American Society of Civil Engineers, Joe Brady, 202-789-7852 
  • American Water Works Association, Tommy Holmes, 202-326-6128 
  • Bond Dealers of America, Brett Bolton, 202-204-7902 
  • International City/County Management Association, Elizabeth Kellar, 202-962-3611 
  • National Association of Bond Lawyers, Jessica Giroux, 518-469-1565 
  • National Assn. of Health and Educational Facilities Finance Authorities, Chuck Samuels, 202-434-7311 
  • National Association of Counties, Eryn Hurley, 202-661-8805 
  • National Association of Regional Councils, Leslie Wollack, 202-618-5696 
  • National Association of State Treasurers, Brian Egan, 202-630-1880 
  • National League of Cities, Irma Esparza Diggs, 202-626-3023 
  • Native American Finance Officers Association, Emery Real Bird, 202-945-7750 
  • The Council of State Governments, Elizabeth Whitehouse, 202-624-5460 
  • The United States Conference of Mayors, Larry Jones, 202-861-6709 

CC:

  • Members of the United States House of Representatives
  • Members of the United States Senate Members of the Federal Reserve Board of Governors

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