TOPLINE
New York Governor Andrew Cuomo in a Thursday press conference skewered Senate Majority Leader Mitch McConnell’s (R-Ky.) suggestion that states facing budget crises due to coronavirus consider declaring bankruptcy, and continued to insist that the pandemic is no time for politics.
New York Governor Andrew Cuomo.
KEY FACTS
Cuomo has emphasized during his daily press conferences that federal aid is needed by the state, as its budget has been stretched fighting the worst coronavirus outbreak in the U.S.
On Wednesday McConnell’s office circulated a press release called “Stopping Blue State Bailouts,” according to the New York Times, after McConnell said during an interview with the conservative radio host Hugh Hewitt: “I think this whole business of additional assistance for state and local governments needs to be thoroughly evaluated.”
Cuomo said it’s “vicious” and “ugly” for McConnell to describe states calling for federal aid as “blue state bailouts” and said letting states go bankrupt would tank the stock market.
“How irresponsible and how reckless,” Cuomo said, adding, “Put aside your partisanship and this political lens that you see the world through.”
“Senator McConnell, who is getting bailed out here? It's your state that is living on the money that we generate," Cuomo said, pointing out that New York contributes more money to the federal government than it receives.
Crucial quote
“If there was ever a time for humanity and decency, now is the time,” Cuomo said. “And if there was ever a time to stop your political obsessive bias, now is the time.”
Big number
$116 billion. According to Cuomo, that’s how much more New York contributes to federal tax revenue than it takes out. Mitch McConnell’s Kentucky, Cuomo wrote on Twitter, takes $148 billion more in federal funding than it contributes.
Key background
“There’s not going to be any desire on the Republican side to bail out state pensions by borrowing money from future generations,” McConnell said during his Wednesday interview. States do not have the ability to declare bankruptcy, but McConnell said he would be in favor of allowing them to do so. Cuomo ridiculed McConnell’s notion Wednesday, saying, “Okay, let’s have all the states declare bankruptcy—that’s the way to bring the national economy back.” According to the New York Times, the bankruptcy idea is likely to encounter pushback in the White House from Democrats and even some Republicans.
Further reading
McConnell Says States Should Consider Bankruptcy, Rebuffing Calls for Aid (New York Times)
Another 4.4 Million Workers File Unemployment Claims As Coronavirus Labor Crisis Deepens (Forbes)
Cuomo: ‘If You Want States To Reopen, We Need Funding’ (Forbes)
Cuomo: Coronavirus Relief Bill ‘Is Not Enough,’ States Need Funding (Forbes)
