California Gov. Gavin Newsom (D) told CNN's "State of the Union" on Sunday that the federal government has a "moral obligation" to provide funding for states in its next coronavirus relief bill, noting that police officers, health care workers and firefighters will be the first ones laid off as a result of massive budget deficits.
Why it matters: The House last week passed a bill that includes $500 billion for state governments and $375 billion for local governments. But the Trump administration and Senate Majority Leader Mitch McConnell have deemed it dead on arrival, signaling that they want to wait a few weeks until deciding on whether to pass another relief package.
- McConnell and other Republicans have suggested that the federal government should not bail out Democratic states that had budgetary problems prior to the pandemic.
- Newsom dismissed this criticism on CNN, noting that California was running a $21.5 billion surplus a year ago. Now, as a result of lost revenue, the state has a $54.3 billion budget deficit that is "directly COVID-induced," Newsom said.
What he's saying:
Go deeper: States face economic death spiral from coronavirus