Lightfoot outlines plan for $1.1 billion in CARES Act funding

Chicago Mayor Lori Lightfoot outlined an initial plan Tuesday on how the city will spend more than $1.1 billion in federal CARES Act funding.

The tentative allocation of the funds, which must be spent on COVID-19-related expenses, includes $376.7 million for airport assistance, $189.3 million for the city’s public health response and $410.5 million for direct response to the pandemic, which would help cover the cost of previously-announced initiatives to address healthcare disparities in the city’s south and west sides.

Lightfoot also said during a Tuesday press conference that more federal funds are needed for municipalities.

“The federal support from the CARES Act provides needed resources for services and programs to assist those who have been most severely impacted by the coronavirus,” she said. “And while this funding is a good start, more help is needed as we rebuild our city from the damage caused by the virus.”

City officials are projecting a $700 million budget shortfall this year due to the pandemic.

“That’s a sobering number and it presents a sobering challenge,” Lightfoot said, noting the deficit could grow if there is a second surge in COVID cases. Health officials are already preparing for a possible “interim surge” in the coming weeks due to recent large public gatherings and protests, she said.

The city will attempt to save $100 million by refinancing debts while seeking further savings. Lightfoot did not rule out layoffs or raising property taxes.

Tuesday’s presser came several hours after city officials announced the cancellation of all permitted special events through Labor Day. That includes the Taste of Chicago, the Air and Water Show and Lollapalooza.

When asked about the closures, Lightfoot told reporters that the reality of the situation is that bringing hundreds of thousands of people from across the world to downtown Chicago for an event like Lollapalooza simply does not make sense during a pandemic.

“We might as well light ourselves on fire,” she said. “It makes no sense.”

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