The president has rightly put governors on the front lines in the war against the economic and health impacts of COVID-19. People in each state have unique but real needs. The federal government has an important role to play in providing relief, but it should be temporary and targeted to the virus and the virus’ impact. But now, calls from Democratic and big-spending Republican governors have started pouring in for billions in “unrestricted aid” — that’s code for state bailouts.
State bailouts will reward fiscal mismanagement and will turn taxpayer dollars into a partisan weapon.
After blocking increased funding for small business loans last week, Senator Chuck Schumer and Speaker Nancy Pelosi demanded $150 billion for states and localities. Their demand was followed by a request from the National Governors Association and repeated demands from New York Governor Andrew Cuomo for billions in unrestricted aid — not just money for coronavirus aid, but for pre-existing state programs and debts.
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