Trump asks why taxpayers should help bail out blue states
President Trump on Monday questioned why the federal government should provide financial relief to states facing budgetary strains due to the coronavirus pandemic, portraying it as a partisan issue in states and cities with Democratic leaders.
It’s a signal Trump may be turning away from supporting funding for cash-strapped states and cities in a new coronavirus relief bill, though the president has sent conflicting signals on the issue already.
“Why should the people and taxpayers of America be bailing out poorly run states (like Illinois, as example) and cities, in all cases Democrat run and managed, when most of the other states are not looking for bailout help?” Trump tweeted. “I am open to discussing anything, but just asking?”
Trump tweeted last week that he hoped future coronavirus legislation would include “fiscal relief to State/Local governments for lost revenues from COVID 19.”
But after Senate Majority Leader Mitch McConnell(R-Ky.) floated the idea of allowing states to go bankrupt rather than sending federal money to them, Trump said his administration was looking into the idea.
“I’ve been talking to a lot of the different senators, but I don’t want to talk about it now,” Trump said Thursday. “That was a very interesting presentation.”
Governors in both parties have panned McConnell’s comments.
New York Gov. Andrew Cuomo (D) called it a “really dumb idea.”
“The suggestion was made, states should declare bankruptcy. … You want to send a signal to the markets that this nation is in real trouble? You want to send an international message that the economy is in turmoil? Do that,” Cuomo said.
Fact: Blue high-tax states fund red low-tax states – in a big way.