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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 3 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. |
Updated June 24, 2020 | |
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | |
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
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. |
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
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.) |
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. |
“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. |
“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. |