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Officials Say Limits on Virus Relief Funds for States Are Too Tight Officials Say Limits on Virus Relief Funds for States Are Too Tight
(about 11 hours later)
WASHINGTON — Lawmakers and state officials say the Trump administration is unreasonably restricting how local governments can spend federal aid as they struggle to stay afloat during the pandemic and Republicans raise doubts about providing added financial relief to hard-pressed communities.WASHINGTON — Lawmakers and state officials say the Trump administration is unreasonably restricting how local governments can spend federal aid as they struggle to stay afloat during the pandemic and Republicans raise doubts about providing added financial relief to hard-pressed communities.
The officials say new Treasury Department rules that prohibit local governments from using their share of $150 billion provided last month for “revenue replacement” are impractical. Requiring that such assistance be confined to costs directly tied to the pandemic will be of limited help, they say, particularly in communities that have a low incidence of Covid-19 cases but have seen their revenue dry up because of the government-ordered shutdown of the economy.The officials say new Treasury Department rules that prohibit local governments from using their share of $150 billion provided last month for “revenue replacement” are impractical. Requiring that such assistance be confined to costs directly tied to the pandemic will be of limited help, they say, particularly in communities that have a low incidence of Covid-19 cases but have seen their revenue dry up because of the government-ordered shutdown of the economy.
“It is clear the revenue loss is going to be coronavirus related; it is just that the expenditures are not specifically for coronavirus,” said Senator Sherrod Brown of Ohio, one of 46 senators in the Democratic caucus who signed a letter made public Sunday urging the administration to revise the ban.“It is clear the revenue loss is going to be coronavirus related; it is just that the expenditures are not specifically for coronavirus,” said Senator Sherrod Brown of Ohio, one of 46 senators in the Democratic caucus who signed a letter made public Sunday urging the administration to revise the ban.
In response to escalating local needs, the Federal Reserve said on Monday that it would substantially expand its municipal lending program, allowing smaller cities and counties to sell their investment-grade debt to the central bank. The move eases the way for local governments desperate to raise funds as the coronavirus drains their coffers.In response to escalating local needs, the Federal Reserve said on Monday that it would substantially expand its municipal lending program, allowing smaller cities and counties to sell their investment-grade debt to the central bank. The move eases the way for local governments desperate to raise funds as the coronavirus drains their coffers.
The push for more state freedom in spending the first batch of money allocated by Congress last month comes as the clash intensifies over whether states should get hundreds of billions of dollars more in the next stage of emergency legislation — or whether there should be another recovery measure in the short term at all.The push for more state freedom in spending the first batch of money allocated by Congress last month comes as the clash intensifies over whether states should get hundreds of billions of dollars more in the next stage of emergency legislation — or whether there should be another recovery measure in the short term at all.
Senator Mitch McConnell, Republican of Kentucky and the majority leader, suggested last week that he would resist more state aid and said he wanted to push the “pause button” on new legislation. But on Monday, illustrating the pressure to help local governments, he seemed to backtrack in an interview on Fox News Radio, saying his initial comment was meant as a reminder that some states had fiscal issues before the pandemic.Senator Mitch McConnell, Republican of Kentucky and the majority leader, suggested last week that he would resist more state aid and said he wanted to push the “pause button” on new legislation. But on Monday, illustrating the pressure to help local governments, he seemed to backtrack in an interview on Fox News Radio, saying his initial comment was meant as a reminder that some states had fiscal issues before the pandemic.
“There probably will be another state and local funding bill, but we need to make sure that we achieve something that will go beyond simply sending out money,” Mr. McConnell said.“There probably will be another state and local funding bill, but we need to make sure that we achieve something that will go beyond simply sending out money,” Mr. McConnell said.
Other Republicans have joined with Mr. McConnell, saying they worry that states will take advantage of the opening to obtain federal money to resolve longstanding fiscal problems such as shortfalls in public employee pension funds.Other Republicans have joined with Mr. McConnell, saying they worry that states will take advantage of the opening to obtain federal money to resolve longstanding fiscal problems such as shortfalls in public employee pension funds.
“It’s not fair to the taxpayers of Florida,” Senator Rick Scott, Republican of Florida and a former governor of the state, told reporters in the Capitol on Monday. “We sit here, we live within our means, and then New York, Illinois, California and other states don’t. And we’re supposed to go bail them out? That’s not right.”“It’s not fair to the taxpayers of Florida,” Senator Rick Scott, Republican of Florida and a former governor of the state, told reporters in the Capitol on Monday. “We sit here, we live within our means, and then New York, Illinois, California and other states don’t. And we’re supposed to go bail them out? That’s not right.”
With an election six months away, President Trump had been seen as a supporter of more state aid but has vacillated since Mr. McConnell’s statement and the concerns expressed by other Republicans.With an election six months away, President Trump had been seen as a supporter of more state aid but has vacillated since Mr. McConnell’s statement and the concerns expressed by other Republicans.
“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?” Mr. Trump said in a tweet on Monday. “I am open to discussing anything, but just asking?”“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?” Mr. Trump said in a tweet on Monday. “I am open to discussing anything, but just asking?”
Mr. Brown said he discussed the flexibility issue by telephone on Monday with Treasury Secretary Steven Mnuchin, who has been negotiating with Democrats. Mr. Mnuchin, according to Mr. Brown, said that he would address the concern in upcoming legislation and that the Treasury would be liberal in its interpretation of what costs were directly related to the pandemic until then.Mr. Brown said he discussed the flexibility issue by telephone on Monday with Treasury Secretary Steven Mnuchin, who has been negotiating with Democrats. Mr. Mnuchin, according to Mr. Brown, said that he would address the concern in upcoming legislation and that the Treasury would be liberal in its interpretation of what costs were directly related to the pandemic until then.
Given Republican opposition and Mr. Trump’s mercurial nature, Mr. Mnuchin’s comments are no guarantee the problem will be fixed, Mr. Brown said. “That doesn’t mean Trump will fight for it and it doesn’t mean McConnell will go along with it,” he said.Given Republican opposition and Mr. Trump’s mercurial nature, Mr. Mnuchin’s comments are no guarantee the problem will be fixed, Mr. Brown said. “That doesn’t mean Trump will fight for it and it doesn’t mean McConnell will go along with it,” he said.
Treasury officials confirmed that the two men spoke about what might be in the next measure. They also pointed to Mr. Mnuchin’s comments on Fox News on Sunday about any further state aid requiring bipartisan support but would not elaborate on his position about granting more flexibility.Treasury officials confirmed that the two men spoke about what might be in the next measure. They also pointed to Mr. Mnuchin’s comments on Fox News on Sunday about any further state aid requiring bipartisan support but would not elaborate on his position about granting more flexibility.
“If we need to spend more money we will, and we’ll only do it with bipartisan support,” Mr. Mnuchin said.“If we need to spend more money we will, and we’ll only do it with bipartisan support,” Mr. Mnuchin said.
In a memorandum last week, the Treasury said states could spend their piece of the $150 billion only for costs incurred directly as a result of the pandemic such as medical and public health expenses and for paying public workers “substantially dedicated” to the response to the outbreak.In a memorandum last week, the Treasury said states could spend their piece of the $150 billion only for costs incurred directly as a result of the pandemic such as medical and public health expenses and for paying public workers “substantially dedicated” to the response to the outbreak.
“Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify,” the memo said.“Funds may not be used to fill shortfalls in government revenue to cover expenditures that would not otherwise qualify,” the memo said.
State and local officials from both parties have told lawmakers that they find the Treasury restrictions unworkable.State and local officials from both parties have told lawmakers that they find the Treasury restrictions unworkable.
“We need the flexibility to prioritize how we are spending these dollars,” Gov. Gretchen Whitmer of Michigan said during a virtual interview hosted by Politico on Monday.“We need the flexibility to prioritize how we are spending these dollars,” Gov. Gretchen Whitmer of Michigan said during a virtual interview hosted by Politico on Monday.
With Illinois serving as a fiscal whipping boy for Republicans, Gov. J.B. Pritzker noted at a news conference on Monday that it was a “donor state to the federal government,” paying more in federal taxes than it got back.With Illinois serving as a fiscal whipping boy for Republicans, Gov. J.B. Pritzker noted at a news conference on Monday that it was a “donor state to the federal government,” paying more in federal taxes than it got back.
Updated June 1, 2020 Updated June 2, 2020
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said.
Yes, but make sure you keep six feet of distance between you and people who don’t live in your home. Even if you just hang out in a park, rather than go for a jog or a walk, getting some fresh air, and hopefully sunshine, is a good idea.
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
Charity Navigator, which evaluates charities using a numbers-based system, has a running list of nonprofits working in communities affected by the outbreak. You can give blood through the American Red Cross, and World Central Kitchen has stepped in to distribute meals in major cities.
“The states who are being bailed out every year, year in and year out, are the states who take more out of the federal dole than they put in in taxes,” he said, adding that, unlike the federal government, Illinois had a balanced budget.“The states who are being bailed out every year, year in and year out, are the states who take more out of the federal dole than they put in in taxes,” he said, adding that, unlike the federal government, Illinois had a balanced budget.
“All states need it now,” Mr. Pritzker said of federal aid. “Because coronavirus, Covid-19, has blown a hole in every state budget all across the nation.”“All states need it now,” Mr. Pritzker said of federal aid. “Because coronavirus, Covid-19, has blown a hole in every state budget all across the nation.”
Proponents of the aid believe that Mr. Trump and Republicans will eventually have to relent when the extent of the fiscal crisis for local governments becomes clear. Senator Bill Cassidy, Republican of Louisiana and a sponsor of bipartisan legislation providing $500 billion for state and local governments, said his Senate colleagues were hearing from Republican governors and state lawmakers that their states were in trouble.Proponents of the aid believe that Mr. Trump and Republicans will eventually have to relent when the extent of the fiscal crisis for local governments becomes clear. Senator Bill Cassidy, Republican of Louisiana and a sponsor of bipartisan legislation providing $500 billion for state and local governments, said his Senate colleagues were hearing from Republican governors and state lawmakers that their states were in trouble.
“This is not about a state which has been mismanaged overpromising pensions and underfunding suddenly finding a way to wiggle out of that obligation,” Mr. Cassidy said. “It is about helping to keep police, fire and sanitation in place.”“This is not about a state which has been mismanaged overpromising pensions and underfunding suddenly finding a way to wiggle out of that obligation,” Mr. Cassidy said. “It is about helping to keep police, fire and sanitation in place.”
Democrats are also putting the onus on Republican senators up for re-election, challenging them on whether they back Mr. McConnell or money for their communities.Democrats are also putting the onus on Republican senators up for re-election, challenging them on whether they back Mr. McConnell or money for their communities.
In their letter to the Treasury spearheaded by Senator Jack Reed of Rhode Island, Senate Democrats accused the Trump administration of “trying to impose overly restrictive regulations” that were not the intent of the original legislation. “This could cripple each state’s ability to respond and recover,” said the letter, which urged the administration to change the rules so state and local governments could maintain essential services.In their letter to the Treasury spearheaded by Senator Jack Reed of Rhode Island, Senate Democrats accused the Trump administration of “trying to impose overly restrictive regulations” that were not the intent of the original legislation. “This could cripple each state’s ability to respond and recover,” said the letter, which urged the administration to change the rules so state and local governments could maintain essential services.
Senator Susan Collins, Republican of Maine, said on Monday that she agreed that the restrictions were counterproductive.Senator Susan Collins, Republican of Maine, said on Monday that she agreed that the restrictions were counterproductive.
“It doesn’t help three-quarters of the state of Maine because our incidence rate is low in the northern part of the state,” she said. “But we are still required to be shut down so sales tax isn’t going to the state, restaurant and lodging tax isn’t going to the state, excise tax on registering your car, your boat, your snowmobile isn’t going to the state,” she said.“It doesn’t help three-quarters of the state of Maine because our incidence rate is low in the northern part of the state,” she said. “But we are still required to be shut down so sales tax isn’t going to the state, restaurant and lodging tax isn’t going to the state, excise tax on registering your car, your boat, your snowmobile isn’t going to the state,” she said.
“It is the indirect costs of being forced by government order to shut down that is killing these communities,” Ms. Collins said.“It is the indirect costs of being forced by government order to shut down that is killing these communities,” Ms. Collins said.
The Fed had previously announced that it would buy short-term debt from states, cities with populations of more than one million and counties with populations exceeding two million. On Monday, it expanded that to cities with more than 250,000 residents and counties with more than 500,000. A total of 261 states, cities and counties will now qualify for the program, the Fed said.The Fed had previously announced that it would buy short-term debt from states, cities with populations of more than one million and counties with populations exceeding two million. On Monday, it expanded that to cities with more than 250,000 residents and counties with more than 500,000. A total of 261 states, cities and counties will now qualify for the program, the Fed said.
Reporting was contributed by Julie Bosman, Alan Rappeport, Jeanna Smialek and Emily Cochrane.Reporting was contributed by Julie Bosman, Alan Rappeport, Jeanna Smialek and Emily Cochrane.