State legislators call on Cuomo to release CARES Act funds for nonprofits

In a virtual event on Tuesday, state legislators pushed Gov. Andrew Cuomo to use $4 billion in remaining federal coronavirus relief funds provided via the CARES Act to support nonprofits.

“When you withhold this money from the nonprofit sector, you have to remember that the services that you’re withholding money from, that are not being provided, are preventative services,” said Assembly Member Andrew Hevesi, who chairs the body’s Social Services Committee. “So you’re going to cost taxpayers money in the future.” 

After he and other state elected officials, New York City Council Members and nonprofits sent a letter to the governor on Sept. 8 with this request, a spokesman with the state budget department said that the remaining CARES Act dollars had restrictions on their use. But Hevesi pushed back against that argument on Tuesday.

“The $4 billion that is available to the state, in their coffers, can be used under federal guidelines for everything we are asking here for today,” he said.

Nonprofits funded by the state have been hit hard by the worsening budget shortfall, seeing 20% of their funding withheld, and additional federal that may also mitigate the withholdings has yet to take shape.

“These are organizations that hold up these vulnerable communities during the best of times, and now that it is in the worst of times, we must do what we can to make sure they can continue to offer these services,” said state Sen. Gustavo Rivera.