Rep. Katko Renews Effort to Deliver Budgetary Relief to Local Governments Amid the Ongoing Pandemic

Washington— U.S. Rep. Katko (R, NY-24) today announced the reintroduction of the Supporting State and Local Leaders Act, legislation that would provide budgetary relief to state and local governments by making them eligible for emergency paid leave payroll tax credits. Rep. Katko introduced this bipartisan measure alongside U.S. Reps. Brad Schneider (D, IL-10) and Diana DeGette (D, CO-1).

In March, Rep. Katko supported passage of COVID-19 relief legislation, which expanded access to emergency paid leave in 2020, providing workers with a vital safety-net amid the pandemic. However, under current law, public employers are not eligible to receive tax credits to offset the costs associated with providing emergency paid leave, leaving already overburdened local governments with an additional expense to cover. With many local governments in Central New York anticipating continued budgetary shortfalls in 2021, Rep. Katko reintroduced the Supporting State and Local Leaders Act to provide much-needed budgetary relief.

“I’m proud to reintroduce the Supporting State and Local Leaders Act, bipartisan legislation that makes state and local governments eligible for emergency paid family and sick leave payroll tax credits, “ said Rep. Katko. “Since the start of this crisis, our local governments have played a key role in our pandemic response and recovery efforts. They have continued to provide essential services, supported healthcare providers, and relayed important information to keep our communities safe and healthy. However, due to the economic impacts of this crisis, many local governments will soon be forced to make tough decisions if we don’t offer additional support. By providing payroll tax credits to offset paid leave expenses, we will ensure local governments are able to protect employees and continue their work to serve our community through the duration of this crisis.”