April 29, 2020
On Tuesday, President Trump spoke in the Oval Office, the president said a state that needs money should only receive funding if the hardship was caused by the coronavirus. He said there’s a big difference between a state that lost revenue because of the pandemic and one that was “mismanaged for 25 years.”
Senate Majority Leader Mitch McConnell said he would rather have states declare bankruptcy than have the federal government bail them out.
Senate Majority Leader Mitch McConnell said during a radio interview Wednesday when he noted that the “bankruptcy route” has saved cities and there’s no reason for it to be unavailable to states. Under current federal law, states do not have the ability to declare bankruptcy.
President Trump stated “I think sanctuary cities is something that has to be brought up, where people that are criminals are protected. They’re protected from prosecution…I think that’s one of the problems that the states have.”
The president also stated that he’s “not looking to do a bailout for a state that’s been unfair to many others, while most of the states have done such a good job.” States like California, New York, and Illinois have had tremendous debt for years from overspending. These states should not get a bailout from the coronavirus stimulus package.
President Trump said special considerations need to be made if states seek funding to bail out their economies.
President Trump added there would need to be discussions about state policies before any economic relief would be doled out and mentioned sanctuary city policies specifically as a point of contention.