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Kaine Introduces Legislation To Help State And Local Governments Provide Paid Leave During Pandemic

Bill makes state and local governments eligible for Emergency Paid Leave Payroll Tax Credits

WASHINGTON, D.C.  – Today, U.S. Senator Tim Kaine joined Senators Dick Durbin and Tina Smith to introduce a legislative fix that would help state and local governments provide public employees with paid leave when they need it most. The Families First Coronavirus Response Act, signed into law in March, requires many public and private employers to provide paid leave for workers affected by the coronavirus pandemic. That law provides tax credits to private-sector employers to cover the costs of paid leave. But the package did not extend those tax credits to public-sector employers, which is putting a financial strain on state and local governments at a time when many are grappling with additional costs brought on by the coronavirus pandemic. The Senators have introduced the Supporting State and Local Leaders Act to fix this problem by making state, local, and tribal governments eligible for paid leave payroll tax credits.

“Localities across Virginia are struggling to balance their budgets and having to contemplate layoffs because of massive declines in tax revenue due to the coronavirus. State and local governments are stretched thin and should receive tax credits to help cover emergency paid leave, just like private employers received,” Kaine said. “This bill is critical to supporting state and local employees including first responders with the paid leave they need as they continue to work at the forefront of this health crisis.”

Along with Kaine, Durbin, and Smith, the Supporting State and Local Leaders Act is also cosponsored by Senators Amy Klobuchar (D-MN), Michael Bennet (D-CO), Chris Van Hollen (D-MD), and Dianne Feinstein (D-CA).

The Supporting State and Local Leaders Act is supported by the National League of Cities, National Association of Counties, the Association of Public and Land-Grant Universities, and the National School Boards Association.

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