U.S. Governors Demand $500 Billion To Prevent Collapse Services
By Stefan J. Bos, Special Correspondent Worthy News
(Worthy News) – U.S. governors appealed Saturday for $500 billion in federal aid, saying states face a budget crisis due to the new coronavirus pandemic that threatens essential services. They urged Congress to “meet the states’ budgetary shortfalls that have resulted from this unprecedented public health crisis.”
Republican Governor Larry Hogan of Maryland and Democratic Governor Andrew Cuomo of New York warned that without federal support states would have to reduce services “hampering public health, the economic recovery, and — in turn — our collective effort to get people back to work.”
However, Congressional Republicans have rejected calls for additional coronavirus related spending at this time, beyond a $250 billion increase to a small business loan program. On Thursday, Democrats blocked an attempt to approve the small business money after Republicans refused to add $150 billion for states and $100 billion for hospitals. Republicans also disagreed with a requirement that half of any new small business money would be for community financial institutions.
Senate Majority Leader Mitch McConnell and House Minority Leader Kevin McCarthy said they would continue to reject Democrats’ demands. “Republicans reject Democrats’ reckless threat to continue blocking job-saving funding. Unless we renegotiate unrelated programs which are not in similar peril,” they said in remarks. “This will not be Congress’s last word on COVID-19, but this crucial program needs funding now. American workers cannot be used as political hostages.”
Democratic House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer called for bipartisan talks. They were communicating with Treasury Secretary Steven Mnuchin over the past several days. “Our state and local governments are in crisis, and between emergency expenses and rising unemployment sapping revenue. They need an immediate infusion of funds to prevent the collapse of essential services,” Pelosi added in a statement. “On a bipartisan basis, governors are crying out for help, and Congress must act.”
Amid the political wrangling, governors say their states are still awaiting money included in the recently adopted $2.2 trillion coronavirus recovery package, known as CARES act. The legislation included $150 billion specifically for states. But that money has not been released in the roughly two weeks since it became law.
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