CARES Act funds given to Kansas City to be used in Clay County

City Council of Kansas City to channel $2.5 million of aid to low-income households, small businesses in the county.

After rumors of a small disagreement between Clay County and the City Council of Kansas City over the planned use of CARES Act funds, the council has decided to allocate $2.5 million to low-income households and small businesses in Clay County.

According to a proposed city ordinance, the city will allocate $1 million to Northland Neighborhoods, Inc. to provide emergency rental, rapid rehousing, utility or nutrition assistance to low-income households experiencing economic or health impacts from COVID-19.

Another $1.5 million will go to the Economic Development Corporation of Kansas City to provide grants of up to $50,000 to businesses in the Kansas City portion of Clay County that had operations significantly impacted by COVID-19.

“COVID continues to have a devastating impact on small businesses and working-class families throughout our community, and we cannot keep them waiting for relief any longer,” said Kansas City Mayor Quinton Lucas.

In total, Kansas City received $11.7 million in federal CARES Act funding from Clay County.

The City Council on May 21 passed a resolution affirming all CARES Act funds received from the county will be allocated for projects and activities occurring within Clay County “unless administrative in nature or not otherwise readily divisible based on geographic boundaries,” according to a release from the city.