This bill authorizes the issuance of $5 billion in State general obligation bonds to be used in response to the fiscal impact of the COVID-19 pandemic. The bill also authorizes the Governor to apply for and receive federal stimulus loans (of up to $9 billion) from the Federal Reserve’s Municipal Liquidity Facility (MLF). The MLF funding would, according to the bill, be available to address State revenue shortfalls, and to create a “COVID-19 Local Government Unit Emergency Fund,” to be administered by the Department of Community Affairs (DCA). The bill also authorizes the issuance of refunding bonds, whenever better rates and terms are available, and emergency, short-term liquidity notes, to address temporary cash flow problems
Assemblyman Erik Peterson (R-23) stated, " Democrats just saddled our children with almost $10,000,000,000 in debt. The debt is for current expenses. Kind of like taking out a 35 year mortgage to pay your electric bill. Next will be the increase in everyone’s taxes to pay for this massive debt bill."