The Democratic governors of New Jersey and Pennsylvania implored Congress on Monday to distribute more money to local governments as the fate of state aid in a new stimulus deal remains uncertain.
“In the midst of the worst surge of Covid-19 that our country has seen, when record numbers of Americans are dying or being hospitalized, or catching this disease, our federal level leaders seem to be incapable of providing Americans with the desperately needed support,” Pennsylvania Gov.
Tom Wolf said during a press call with New Jersey Gov. Phil Murphy.POLITICO reported Monday that congressional negotiators are closing in on a $1.4 trillion omnibus spending deal to ward off a government shutdown on Friday at midnight, but lawmakers still haven't resolved whether to include aid for state and local governments.
Last week, Senate Majority Leader Mitch McConnell proposed cutting state and local aid from a coronavirus relief package in exchange for eliminating liability shields for companies, which are two top priorities for Republicans and Democrats. The idea incensed Minority Leader Chuck Schumer.
But House Majority Leader Steny Hoyer, in contrast, said Sunday the party may be willing to support a coronavirus relief package without aid to state and local governments, potentially ceding that Democratic priority in pursuit of a bipartisan deal.
Sens. Joe Manchin (D-W.Va.) and Bill Cassidy (R-La.) will put forth a $908 billion bill later Monday, but Senate Republicans have previously signaled little interest in the proposal. In a sign of how desperately lawmakers want to reach agreement, a bipartisan group of lawmakers decided over the weekend to split their aid proposal into two pieces, carving out the two most contentious items — money for local governments and liability protections for businesses — into a separate bill.
Wolf blamed Republicans — namely McConnell — for the hold-up.
“I am deeply disappointed with our federal government, and with Republicans in the federal government in every stage of this pandemic,” Wolf said on the press call. “Republican leaders at the federal level, as they have not been there to support the people of this country.”
Murphy said the expenses for local governments will only rise the more Congress delays distributing aid. Murphy said he thinks states need even more than is being proposed, but that any significant aid at this point would be welcomed.
“The longer this goes on, the more costly it will be,” Murphy said. “There's a need for a bridge to get us to that better day, which is months away, not years away.”
Murphy has thrown out dire revenue needs for New Jersey in the range of tens of billions of dollars. But tax collections, while dipped, have come in better than expected, an issue Republicans in the state have pointed to as proof Murphy is overexaggerating the need.
But Murphy said he stands by his estimates, and that while tax receipts may be better than expected, the virus is worse than it was in the spring and there are so many uncertain factors.
“The impact on our economy is a big question mark right now,” Murphy said. “So I think the number is still very significant, and we're still not out of the woods. Nobody's declaring victory here just because tax receipts might be a little bit better than we thought.”