65% of Cities Cutting Infrastructure Projects in the Face of $360B Revenue Pitfall

National League of Cities study shows 70% of cities have not received funding through the CARES Act and 24 states have not yet announced plans to distribute Federal Coronavirus Relief Funds to local governments

National League of Cities
Nlc Data1

The National League of Cities (NLC) published new survey data from over 1,100 municipalities across the country on the financial impact of COVID-19 on America’s cities, towns and villages. Seventy-four percent of municipalities have already started making unavoidable cuts and adjustments in response to the projected $360 billion revenue loss for cities over the next three years. 

“The survey found that 65% of cities are being forced to delay or completely cancel capital expenditures and infrastructure projects, which will not only stifle job growth and slow local economic activity, but further jeopardize economic recovery efforts in communities across the nation," said Clarence Anthony, CEO and executive director for the National League of Cities. "Without congressional action now, the forced delay or cancellation of infrastructure projects will create an economic ripple effect throughout the nation not felt in decades.”

  • 61% of cities are delaying or canceling equipment purchases, which will stunt local commercial activity among businesses that supply equipment for municipal projects.
  • 24% of cities are making significant cuts to community and economic development programs, which further hinders local businesses from bouncing back from the current recession
  • 13% are making necessary cuts to code inspection, planning, and permitting, delaying reopening and the growth of local businesses.

View a one pager summary of the survey results here, a visual representation of the data here, and a blogpost here.

NLC launched the Cities Are Essential campaign, calling on the federal government to ensure there is flexible, direct funding relief to America’s municipalities. 

The National League of Cities (NLC) is the voice of America’s cities, towns and villages, representing more than 200 million people. NLC works to strengthen local leadership, influence federal policy and drive innovative solutions.