[20200410]IF11502_州和地方政府债务和2019冠状病毒疾病.pdf

https:/crsreports.congress.gov April 10, 2020State and Local Government Debt and COVID-19Debt (often in the form of bonds) represents a promise by the issuer (borrower) to pay interest income to lenders on the principal (the amount of money borrowed) until that principal is repaid. In light of the economic downturn accompanying the COVID-19 outbreak, there are growing concerns about state and local governments ability to make payments on outstanding debt, and general concern about the fiscal capacity of those governments. The CARES Act (P.L. 116-136), signed into law on March 27, 2020, included provisions that may offer fiscal relief to state and local governments. This In Focus briefly describes the nature and characteristics of state and local debt issuances in light of recent economic and legislative developments. Mechanics and Federal Support State and local governments typically issue debt to finance the construction of capital facilities (e.g., buildings, roads, and airports). Because capital facilities provide benefits over a long period of time, debt instruments may allow the timing of payments to better match those benefits. Debt may also be used for cash-management purpo