As the taxpayer-funded CARES legislation is being used up by various sectors across the country, the Democrats are coming forward with a second proposal: house speaker Nancy Pelosi is requesting an additional $1 trillion be allocated to state and local governments as a means of continuing the fight against the deadly coronavirus.
According to Pelosi, the aim of this potential funding would be to provide revenue to local governments which are struggling to pay for public health expenses due to pre-pandemic declining tax revenues. Besides the request for an additional $1 trillion in funding, Pelosi is also musing the expansion of broadband services across the country, more stimulus checks for the working class, increased funding for employment insurance, and purchasing more medical equipment.
However, Pelosi’s proposal has been met with opposition. According to Mitch McConnell, the Senate Majority Leader, rewarding local governments for their pre-pandemic mismanagement of tax revenues and pension funds is not wise. The Republican Senator for Texas, John Cornyn, is also dismissing the idea, and reminding Pelosi that cities and states have already received $150 billion in funding since the CARES Act was implemented.
Information for this briefing was found via National Post and PBS. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
2 Responses
They will need a lot more than $1 trillion.
Approx $20B per state.
Anyone thinking that will actually cover the short fall? Wait until local governments aren’t collecting property taxes and states aren’t collecting income and/or sales taxes.