From the Document: "Debt (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 [coronavirus disease 2019] 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 [Coronavirus Aid, Relief, and Economic Security] 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."
CRS In Focus, IF11502
Congressional Research Service: https://crsreports.congress.gov/