Cuomo Shreds ‘Grim Reaper’ McConnell’s Suggestion That States Go Bankrupt

TOPLINE

New York Gov. 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.

KEY FACTS

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 pushed back on McConnell Wednesday, saying “OK, 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 some Republican lawmakers. 

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)

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