President Donald Trump on Monday blasted bailouts being sought by state governments and cities who have seen their finances wrecked by the...
President Donald Trump on Monday blasted bailouts being sought by state governments and cities who have seen their finances wrecked by the coronavirus and government lockdowns.
The move came days after he signaled openness to the idea – a top priority for congressional Democrats and a subject of negotiations on the last bailout package.
He sprinkled in partisan attacks on Democrats running areas among the hardest hit by the virus, although many Trump supporters also live in cash-strapped states whose medical infrastructure and budgets are under pressure.
President Donald Trump attacked the idea of bailing out 'poorly run' states, as state and city governments urge Washington to send billions their way to help them maintain services
'Why should the people and taxpayers of America be bailing out poorly run states (like Illinois, as example) and cities, in all cases Democrat run and managed, when most of the other states are not looking for bailout help? I am open to discussing anything, but just asking?' Trump wrote.
National Governors Association Chair Larry Hogan, a Maryland Republican, and New York Gov. Andrew Cuomo, a Democrat, are calling for a $500 billion bailout for states.
Otherwise, 'states will have to confront the prospect of significant reductions to critically important services all across this country,' they said in a statement, 'hampering public health, the economic recovery, and — in turn — our collective effort to get people back to work.'
Trump appeared to be falling in line with Senate Majority Leader Mitch McConnell, who referred dismissively to the request for 'blue state bailouts.'
Trump said he was 'open to discussing' and cast the push for bailouts in partisan terms
'Nobody would be bailing out new York State. New York State has been bailing them out every year for decades,' New York Gov. Andrew Cuomo said Monday
Senate Majority Leader Mitch McConnell of Ky. has called proposals to send funds to bail out states and cities 'blue state bailouts'
Christine Dunmars, a phlebotomist, prepares to take blood of a patient in the isolation unit of Roseland Community Hospital as the coronavirus disease (COVID-19) continues, on the South Side of Chicago, Illinois
Trump attacked Illinois, which is led by Democratic Gov. J.B. Pritzker, in his tweet
Trump cancelled a scheduled coronavirus task force briefing, after failing to hold them Saturday and Sunday
The coronavirus is also taking a toll on red states, with Republicans in control of 27 state governor's mansions, with Democrats holding 23. Many states rely on sales taxes for much of their revenue, and have been hammered by stay-home orders.
Complicating the issue for the president is his need to get the economy moving before the November elections. If States have huge budget holes, they will slash funding or be forced to raise taxes during a downturn.
Earlier this month Trump lashed out at Illinois Gov. J.B. Pritzker for his criticisms of the administration's coronavirus response. 'There is a governor, I hear him complaining all the time, Pritzker. He is always complaining,' he said. Pritzker had criticized shortages in the national stockpile of medical supplies. 'There's no way that we can stockpile in anticipation of a pandemic that no one anticipated, and yet the federal government is responsible for doing precisely that,' Pritzker said.
Trump has also clashed with New York Gov. Andrew Cuomo, who last week unloaded on McConnell, saying the Senate leader's comment that states could declare bankruptcy a 'really dumb idea.'
Trump's included state and local bailouts in an April 21 tweet that stopped far short of an endorsements of the program while touting a bailout that didn't include it.
'I urge the Senate and House to pass the Paycheck Protection Program and Health Care Enhancement Act with additional funding for PPP, Hospitals, and Testing. After I sign this Bill, we will begin discussions on the next Legislative Initiative with fiscal relief..to State/Local Governments for lost revenues from COVID 19, much needed Infrastructure Investments for Bridges, Tunnels, Broadband, Tax Incentives for Restaurants, Entertainment, Sports, and Payroll Tax Cuts to increase Economic Growth,' Trump wrote.
House Speaker Nancy Pelosi and Democratic Senate leader Charles Schumer have called for an 'immediate infusion of funds' to state and local governments in the next bailout package.
Hogan, the Republican governor whose state has become a coronavirus hot spot, swatted at McConnell for his 'blue state bailout' line, calling it 'complete nonsense.'
'These are well-run states. There are just as many Republicans as Democrats that strongly support this,' he told Politico.
Cuomo said he spoke to President Trump Monday morning and did not raise the issue of a state bailout.
He said tallying out who owes what was 'repugnant to this time and I don’t think it’s constructive and I don’t think it’s healthy.'
But he pointed out New York is the nation's No. 1 donor state, giving more than any other compared to what it gets in federal aid.
'Nobody would be bailing out new York State. New York State has been bailing them out every year for decades,' he said.
Asked if New York has enough money as time goes on to meet unemployment claims due to the pandemic, Cuomo replied: 'No. That's why the federal government has to provide funding, because we don't have the money.'
'Police, fire teachers and hospital workers,' Cuomo said, pointing to jobs funded by states. 'How can you exclude them when you’re talking about priorities?' he asked.
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