A Phase 4 Stimulus Package and its potential impact on the State and Local Market

Published: May 13, 2020

SLED Market AnalysisCoronavirus (COVID-19) PandemicPolicy and Legislation

***Updated 5/13/2020*** As discussions have begun on a “Phase 4” stimulus bill, following the CARES Act passage, GovWin takes a look at the potential impact for the State, Local and Education market. House Speaker Nancy Pelosi unveiled a more than $3 trillion coronavirus aid package May 12th, dubbed the Heroes Act.

**Updated 5/13/2020***

House Speaker Nancy Pelosi and democrates continue to push ahead Tuesday with the next coronavirus aid, a sweeping $3 trillion package unveiled being dubbed the Heroes Act (HR 6800)

  • Pelosi outlined the governors' requests for $1 trillion for state and local governments
  • $375 billion for smaller suburban and rural municipalities largely left out of earlier bills?
  • $75 billion more for virus testing
  • $200 billion in “hazard pay” for essential workers on the front lines of the crisis.
  • $25 billion for the U.S. Postal Service.
  • $3.6 billion to help local officials prepare for the challenges of voting during the pandemic.
  • $10 billion for Payroll Protection Program
  • $100 billion infusion for hospitals and other health care providers to help cover costs and additional help for hospitals serving low-income communities.
  • $600 million in funding to tackle the issue of rapid spread of the virus in state and federal prisons.
  •  $600 million in help to local police departments for salaries and equipment.

The House is expected to vote on package as soon as Friday. Top GOP senators flatly rejected the House bill.



Many lawmakers are calling for a fourth coronavirus relief bill as the Trump administration tries to implement the historic $2 trillion stimulus package. House and Senate Republicans also seem open to the discussion of a Phase 4 and potentially Phase 5 piece of stimulus legislation, but all focus at this point is implementing the CARES Act fully before addressing additional phases. A quick look at the impact for State, Local and Education government market and contractors:

State and Local Aid

  • At the core, would be further increase funding for state and local governments to enable and strengthen their response efforts against the COVID-19 outbreak.

Health Care

  • Additional funding for hospitals and other providers, especially rural health care providers.
  • Further telehealth expansion, including for rural providers and additional types of health professionals.
  • Investment in community health centers and additional construction of new health centers.

Transportation and Infrastructure

The $760 billion infrastructure framework which will likely be the starting place for funding conversations. Speaker Pelosi has indicated the phase 4 should also include:

  • Clean water/wastewater infrastructure.
  • Initial plan will include transportation and energy infrastructure, with additional housing and school infrastructure down the line.
  • Increase rural broadband.


  • Spectrum for emergency services/first responders.
  • Rural broadband, high-cost area, unserved support funding.
  • Increased funding for E-Rate programs.
  • Funding for Wi-Fi hotspot connectivity. 

Elections Security and Assistance

  • States would seek securing a federal mandate that would require states to provide remote voting options, including vote-by-mail, with funding for states to implement the measure, which would cost nearly $4 billion to implement.