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Financial Aid to Struggling States Is Next Big Congressional Battle Financial Aid to Struggling States Is Next Big Congressional Battle
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WASHINGTON — With congressional approval of the latest emergency pandemic measure sealed on Thursday, the focus is quickly shifting to an escalating battle over whether Congress will provide hundreds of billions of dollars to states staggering under the costs of the coronavirus outbreak.WASHINGTON — With congressional approval of the latest emergency pandemic measure sealed on Thursday, the focus is quickly shifting to an escalating battle over whether Congress will provide hundreds of billions of dollars to states staggering under the costs of the coronavirus outbreak.
Anxious governors on the front lines of battling the pandemic have been clamoring for more federal help, saying their budgets are being stretched to the breaking point and their revenues are collapsing as they pour resources into health care while their economies are shut down. But the latest measure contained no new state aid, as Republicans resisted extending help even as state officials described their situations as increasingly dire.Anxious governors on the front lines of battling the pandemic have been clamoring for more federal help, saying their budgets are being stretched to the breaking point and their revenues are collapsing as they pour resources into health care while their economies are shut down. But the latest measure contained no new state aid, as Republicans resisted extending help even as state officials described their situations as increasingly dire.
“Many states are already reporting precipitous declines in revenues that fund state services in health care, education, public safety, transportation and other vital programs,” members of the National Governors Association wrote to congressional leaders this week. “States and local governments need robust support from the federal government as we navigate the response to this pandemic and to help foster the economic recovery that is ahead.”“Many states are already reporting precipitous declines in revenues that fund state services in health care, education, public safety, transportation and other vital programs,” members of the National Governors Association wrote to congressional leaders this week. “States and local governments need robust support from the federal government as we navigate the response to this pandemic and to help foster the economic recovery that is ahead.”
Senator Mitch McConnell, Republican of Kentucky and the majority leader, alarmed and angered state officials on Wednesday when he said he wanted to approach the next round of pandemic legislation more deliberately. He said he was opposed to shipping money to state governments if they were going to apply it to fiscal problems unrelated to the pandemic, such as shoring up underfunded pension plans for public workers.Senator Mitch McConnell, Republican of Kentucky and the majority leader, alarmed and angered state officials on Wednesday when he said he wanted to approach the next round of pandemic legislation more deliberately. He said he was opposed to shipping money to state governments if they were going to apply it to fiscal problems unrelated to the pandemic, such as shoring up underfunded pension plans for public workers.
Rather than looking for handouts, Mr. McConnell said states, which shared $150 billion allocated in previous pandemic legislation, should consider filing for bankruptcy. His aides threw fuel on the fire in a news release that said the Senate leader was opposed to “Blue State Bailouts,” suggesting it was Democratic-leaning states that were seeking the money to take care of problems caused by fiscal mismanagement.Rather than looking for handouts, Mr. McConnell said states, which shared $150 billion allocated in previous pandemic legislation, should consider filing for bankruptcy. His aides threw fuel on the fire in a news release that said the Senate leader was opposed to “Blue State Bailouts,” suggesting it was Democratic-leaning states that were seeking the money to take care of problems caused by fiscal mismanagement.
Those comments prompted a sharp backlash, including from Gov. Andrew M. Cuomo of New York, a Democrat, who lashed out at Mr. McConnell for a second day on Thursday.Those comments prompted a sharp backlash, including from Gov. Andrew M. Cuomo of New York, a Democrat, who lashed out at Mr. McConnell for a second day on Thursday.
Mr. Cuomo has consistently said that federal funding was desperately needed to get the state back on its feet and seemed gobsmacked by the concept that it should even consider declaring bankruptcy, noting New York’s position as the nation’s financial services center.Mr. Cuomo has consistently said that federal funding was desperately needed to get the state back on its feet and seemed gobsmacked by the concept that it should even consider declaring bankruptcy, noting New York’s position as the nation’s financial services center.
“That’s how you’re going to bring this national economy back?” asked an incredulous Mr. Cuomo, who called Mr. McConnell irresponsible and reckless. “You want to see that market fall through the cellar? Let New York State declare bankruptcy.”“That’s how you’re going to bring this national economy back?” asked an incredulous Mr. Cuomo, who called Mr. McConnell irresponsible and reckless. “You want to see that market fall through the cellar? Let New York State declare bankruptcy.”
In a virtual interview sponsored by Politico, Gov. Larry Hogan of Maryland, a Republican who heads the National Governors Association, said he expected that Mr. McConnell would come to regret his remarks and noted that the Trump administration had been supportive of state assistance.In a virtual interview sponsored by Politico, Gov. Larry Hogan of Maryland, a Republican who heads the National Governors Association, said he expected that Mr. McConnell would come to regret his remarks and noted that the Trump administration had been supportive of state assistance.
“I’m hopeful that we are going to, between the administration and the 55 governors in America, including territories, we are going to convince Senator McConnell that maybe he shouldn’t let the states go bankrupt,” said Mr. Hogan, who said his state would soon face a $2.8 billion shortfall.“I’m hopeful that we are going to, between the administration and the 55 governors in America, including territories, we are going to convince Senator McConnell that maybe he shouldn’t let the states go bankrupt,” said Mr. Hogan, who said his state would soon face a $2.8 billion shortfall.
President Trump gave ambivalent signals at his White House briefing on Thursday, suggesting that he might be open to offering aid to the states, but also saying, “It is interesting that the states that are in trouble do happen to be blue.” He singled out Illinois, and said many states had been in financial trouble long before “the plague.”President Trump gave ambivalent signals at his White House briefing on Thursday, suggesting that he might be open to offering aid to the states, but also saying, “It is interesting that the states that are in trouble do happen to be blue.” He singled out Illinois, and said many states had been in financial trouble long before “the plague.”
States are facing severe financial strain, as sales tax revenues dry up amid quarantines that have shuttered restaurants, movie theaters, gyms and nail salons. That pain has been compounded by the number of people losing their jobs and filing for state unemployment benefits. Another 4.4 million people filed for unemployment on last week and, while the federal government is kicking in an extra $600 per beneficiary, states must pay the bulk of unemployment benefits using trust funds that are already running low.States are facing severe financial strain, as sales tax revenues dry up amid quarantines that have shuttered restaurants, movie theaters, gyms and nail salons. That pain has been compounded by the number of people losing their jobs and filing for state unemployment benefits. Another 4.4 million people filed for unemployment on last week and, while the federal government is kicking in an extra $600 per beneficiary, states must pay the bulk of unemployment benefits using trust funds that are already running low.
“Most state trust funds are underfunded for this crisis,” said Jared Walczak, the director of state tax policy at the Tax Foundation. “It’s hard not to be. The magnitude of this crisis meant that very few states were prepared.”“Most state trust funds are underfunded for this crisis,” said Jared Walczak, the director of state tax policy at the Tax Foundation. “It’s hard not to be. The magnitude of this crisis meant that very few states were prepared.”
At least three states — California, New York and Ohio — are expected to deplete their trust funds within two weeks, with Kentucky, Texas and Massachusetts close behind. Once those funds run out, the states can borrow money from the federal government, but must repay it within two years.At least three states — California, New York and Ohio — are expected to deplete their trust funds within two weeks, with Kentucky, Texas and Massachusetts close behind. Once those funds run out, the states can borrow money from the federal government, but must repay it within two years.
Republicans on Capitol Hill say they believe Mr. McConnell, who opposed new state aid in talks that produced the most recent measure, was trying to reassure restive conservatives that he would not give easily on more funding in upcoming talks after Congress has already allocated about $2.7 trillion in deficit spending in response the emergency. But he faces significant obstacles if he intends to block the aid, and most see that as an unlikely outcome given the extent of bipartisan support for more state relief.Republicans on Capitol Hill say they believe Mr. McConnell, who opposed new state aid in talks that produced the most recent measure, was trying to reassure restive conservatives that he would not give easily on more funding in upcoming talks after Congress has already allocated about $2.7 trillion in deficit spending in response the emergency. But he faces significant obstacles if he intends to block the aid, and most see that as an unlikely outcome given the extent of bipartisan support for more state relief.
Not only do Democrats in the House and the Senate strongly support state aid — it was one concession Democrats were unable to wring out of Republicans in the latest round — but many Republicans have made it clear they do as well.Not only do Democrats in the House and the Senate strongly support state aid — it was one concession Democrats were unable to wring out of Republicans in the latest round — but many Republicans have made it clear they do as well.
Several have signed on to bipartisan bills and letters calling for the aid. Senator Bill Cassidy, Republican of Louisiana, has joined Senator Robert Menendez, Democrat of New Jersey, in drafting legislation providing $500 billion sought by the states.Several have signed on to bipartisan bills and letters calling for the aid. Senator Bill Cassidy, Republican of Louisiana, has joined Senator Robert Menendez, Democrat of New Jersey, in drafting legislation providing $500 billion sought by the states.
Updated June 12, 2020 Updated June 16, 2020
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
After Senate approval of the legislation on Tuesday, Senator Rob Portman, Republican of Ohio, called for shoring up the states as well.After Senate approval of the legislation on Tuesday, Senator Rob Portman, Republican of Ohio, called for shoring up the states as well.
“I believe we need to do more to help state and local governments affected by this crisis, and I believe the next package should provide additional assistance,” he said, also calling for increased flexibility from the administration on how states can spend the money.“I believe we need to do more to help state and local governments affected by this crisis, and I believe the next package should provide additional assistance,” he said, also calling for increased flexibility from the administration on how states can spend the money.
Lawmakers say the latest round of funding could again run out in a matter of days, opening the door to calls for another rescue measure and beginning the struggle over aid to the states in earnest.Lawmakers say the latest round of funding could again run out in a matter of days, opening the door to calls for another rescue measure and beginning the struggle over aid to the states in earnest.
While many Republicans back the state relief, top aides said that most would join Mr. McConnell in balking at the idea that it could be applied to a pension bailout and that a compromise could include strict prohibitions on how the money is spent. A top state lawmaker in Illinois last week included a request for $10 billion in pension relief in the state’s appeal for federal help, though the problems long preceded the pandemic.While many Republicans back the state relief, top aides said that most would join Mr. McConnell in balking at the idea that it could be applied to a pension bailout and that a compromise could include strict prohibitions on how the money is spent. A top state lawmaker in Illinois last week included a request for $10 billion in pension relief in the state’s appeal for federal help, though the problems long preceded the pandemic.
Many state and municipal pension systems have been underwater since the dot-com crash of 2001, when much of their funding from the booming 1990s melted away. Their problems worsened substantially during the market crash of 2008. Investment losses that year and in 2009 prompted officials in a number of states to attempt pension overhauls in the hope of making their plans sustainable. They were promptly sued by retirees and public workers’ unions, who cited state laws and constitutional provisions that make it illegal to tamper with public pension plans.Many state and municipal pension systems have been underwater since the dot-com crash of 2001, when much of their funding from the booming 1990s melted away. Their problems worsened substantially during the market crash of 2008. Investment losses that year and in 2009 prompted officials in a number of states to attempt pension overhauls in the hope of making their plans sustainable. They were promptly sued by retirees and public workers’ unions, who cited state laws and constitutional provisions that make it illegal to tamper with public pension plans.
The pension problem is not unique to red states or blue. Illinois, a steadfast Democratic stronghold, is seen by experts as the state with the most intractable pension problems. But in Kentucky, Mr. McConnell’s home state, the pension system is in nearly as grave danger as the one in Illinois.The pension problem is not unique to red states or blue. Illinois, a steadfast Democratic stronghold, is seen by experts as the state with the most intractable pension problems. But in Kentucky, Mr. McConnell’s home state, the pension system is in nearly as grave danger as the one in Illinois.
Mary Williams Walsh and Jesse McKinley contributed reporting.Mary Williams Walsh and Jesse McKinley contributed reporting.