New Mexico’s small towns could be getting federal relief funding as communities wrangle with the impact of the coronavirus outbreak, leading to closure of local businesses and increased need for medical supplies to treat the virus and track its spread.
U.S. Sen. Martin Heinrich (D-NM) announced on Monday that he planned to introduce the Coronavirus Community Relief Act, intended to provide federal relief funds to communities with populations less than 500,000.
As the CARES Act, a multi-trillion-dollar package of federal stabilization dollars, read when passed last month relief funding would be provided directly to cities of at least 500,000 residents.
In New Mexico, that means only its biggest city Albuquerque would receive direct funding with a population of about 560,000 as of 2018, per the most recent data from the U.S. Census.
After Albuquerque, the state’s second largest city, Las Cruces, has a population of about 102,000, records show.
No other city in New Mexico had a population, per Census data, of more than 100,000.
Heinrich said the state’s smaller counties, cities and towns also need funding for a wide range of needs.
“Small and rural communities across the nation either will face, or have already faced, enormous economic burdens and costs in an effort to respond to the COVID-19 pandemic,” he said. “It is crucial that we provide the same direct emergency assurances to smaller towns, counties, and cities and grant them the same stability that we are providing our larger metropolitan areas.”
He said he hoped the bill would expand upon the CARES Act, ensuring small cities in New Mexico would not be left out of the federal relief, providing up to $250 billion in funding for such communities.
“I am proud to lead this effort in the Senate to expand upon the Coronavirus Relief Fund that we secured in the CARES Act and open up this critical funding so that no community is left behind, especially in New Mexico,” Heinrich said.
The dollars could be used to account for lost revenue, reimburse revenue expended during the pandemic, and mitigate cost increases for public services believed to be the result of the virus’ spread and subsequent local government action.
U.S. Sen. Tom Udall (D-NM), a cosponsor of the bill, said small communities could be most at risk to the impacts of the outbreak, with smaller economies and less revenue for local governments.
“This unprecedented public health and economic crisis has hit our small towns and rural communities hard as they provide emergency operations at a time when revenues are decreasing," Udall said. "These communities need direct stabilization funds now to address the pandemic and recover economically when this public health emergency has passed.
“As we respond to this crisis we must continue to safeguard our communities that are most at risk by putting them at the forefront of our solutions.”
A companion bill was also introduced in the U.S. House of Representatives, introduced by U.S. Rep. Ben Ray Luján (D-NM), and a group of Democrat representatives from across the country.
Luján said the CARES Act did not go far enough in supporting local communities in New Mexico and throughout the nation.
“Communities across New Mexico are experiencing the public health and economic toll of the COVID-19 pandemic. While Congress has worked in a bipartisan fashion to address this crisis, we must do more to support local and state governments that are responding to this crisis,” he said.
“This crisis requires immediate action, and I remain focused on fighting for the needs of New Mexicans.”
Coronavirus continued its spread in New Mexico, with 1,345 cases reported in New Mexico on Monday.
The highest case load was in Bernalillo County with 455, but more rural areas like Sandoval and San Juan counties still posted positive tests in the triple digits, with 244 and 173, respectively.
U.S. Rep. Xochitl Torres Small said rural areas can be hit hard by the virus, not only due to the suspension of public services and demand for medical supplies, but also the disruption of major economic drivers such as the oil and gas industry which many rural areas depend on.
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She said she attempted unsuccessfully to add language to the CARES Act in support of rural communities and will continue to advocate for such support.
“This is impacting our small cities and rural areas that still have to keep an operating fire department so that emergency responders can show up in need, and make sure police stations are working to protect our communities and our citizens.
“It’s really important that we get relief to these smaller cities.”
New Mexico Rep. Jim Townsend (R-54), who represents portions of Eddy, Chaves and Otero counties, rural areas in southern New Mexico, said federal and state relief should treat New Mexico communities equally.
He said the impact of a local business closing in a small town could be greater than in a big city.
“There are people in rural areas in New Mexico that are hurting just as bad as the urban areas,” Townsend said. “Just because there’s more voters in urban areas doesn’t mean we should be ignored.”
With a potential for special session in the New Mexico Legislature looming this summer, to address a projected $2 billion budget shortfall in state funds due to COVID-19 and a subsequent downturn in extraction and other industries, Townsend said rural businesses and school districts must be especially supported.
“Our job is to take care of our constituents,” Townsend said. “We have to consider the concerns of all of our constituents. I understand we have concerns about the virus, but there’s also the economic concern. Poverty kills a lot of people too.”