Counties and cities under 500,000 are left out of initial direct federal coronavirus aid.

“The CARES Act works for ALL Americans,” touts the U.S. Treasury website, the agency dispensing $2 trillion worth of stimulus checks, Paycheck Protection Program funds for businesses and monies for states and local governments through the Coronavirus Aid, Relief, and Economic Security Act (CARES) passed by Congress on March 27. Some leaders of municipalities under 500,000 in population – Monterey County in total is about 434,000 – say it’s not working for them and the residents they serve.

The Act did establish a $150 billion Coronavirus Relief Fund but most of it went to states and “eligible units of local government,” meaning large counties and cities over 500,000. California received about $9 billion and $6.8 billion of that will go to larger local governments.

“We don’t get any of it,” Deanna Sessums, Monterey Bay public affairs manager for the League of California Cities, says of Monterey County.

In a somber announcement of layoffs last week, Monterey City Manager Hans Uslar cited his city being left out of the CARES Act as one reason why the city was facing an estimated $10 million drop in revenue through the end of June. (Monterey City Council will vote on April 29 on laying off 83 city employees). Uslar says for now he’s protecting the city’s public safety employees and reserves, which may be needed if they continue to experience revenue losses in the future.

Federal help may be on the way, however, if another deal can be struck between Democrats and Republicans in Washington. Rep. Jimmy Panetta, D-Carmel Valley, is a co-sponsor of the Coronavirus Community Relief Act in the House asking for $250 billion for governments – regardless of size – to reimburse losses and expenses related to Covid-19. A push by Senate Democrats to add help for small governments into CARES failed in a vote on April 21. Treasury Secretary Steven Mnuchin promised it would be in the next round of coronavirus legislation.

Uslar says he would possibly use federal money to reopen the library on a limited basis, since it does not have a revenue stream like the Sports Center or Conference Center. Should the city continue to experience major losses for an extended period, the funds would most likely go toward keeping public safety jobs.