This expertise shows based on quantitative and qualitative analyses which challenges arising from the current Corona-Crisis German local communities face. The COVID-19 pandemic is dramatically worsening the financial situation of municipal authorities in Germany, even threatening their ability to invest. At this rate, municipalities will need commitments from the federal and state governments to provide further support in the billions even beyond 2020. Only then could municipal authorities successfully contribute to stabilising the economy, since without further aid, it will be impossible for many of them to make the necessary investments for reducing the current investment backlog. These are the results of a joint study conducted by ZEW Mannheim and the German Institute of Urban Affairs (Difu) on behalf of the German Association of Cities. The authors propose concrete measures that could reflect quick, easy and targeted solutions to deal with the crisis.The premise of the expertise consists of the notion that the local community is the smallest unit on which a federal stimulus package should rely on (an on which it could fail). Therefore, it is important that the local communities continue despite of the crisis to work.