Cuomo rips McConnell’s ‘dumb’ suggestion to allow states go bankrupt

Cuomo rips McConnell’s ‘dumb’ suggestion to allow states go bankrupt

New York Gov. Andrew Cuomo tore into Sen. Mitch McConnell on Thursday over the Senate Republican leader’s aid for letting states declare individual bankruptcy as they grapple with the coronavirus pandemic.

“This is just one of the really dumb ideas of all time,” Cuomo, a Democrat, reported during a push meeting in Albany. 

“You will see a collapse of this nationwide economy” if states these kinds of as New York and California declare individual bankruptcy, Cuomo reported. “So just you should not.”

On Wednesday, McConnell, of Kentucky, advised radio host Hugh Hewitt that he supports making it possible for states to declare individual bankruptcy fairly than obtaining federal money to address price range shortfalls as tax revenue dives.

“I would unquestionably be in favor of making it possible for states to use the bankruptcy route,” McConnell reported. “It saves some towns, and there’s no good rationale for it not to be available.”

McConnell reported of condition leaders: “My guess is, their very first choice would be for the federal govt to borrow money from long run generations to ship it down to them now so they you should not have to do that. That’s not a thing I am heading to be in favor of.”

Cuomo, whose condition has been strike tougher by Covid-19 than any where else in the U.S., strongly disagreed.

New York Governor Andrew Cuomo (D) speaks during a push Convention at the Condition Capitol.

Michael Brochstein | Barcroft Media | Getty Visuals

“The overall country is dependent on what the governors do to reopen,” Cuomo reported at the push meeting. “But then you are not heading to fund the condition govt? You believe I am heading to do it by itself? How do you believe this is heading to function?”

“You want to see that market slide via the cellar? Let New York declare individual bankruptcy,” Cuomo added.

Cuomo has beforehand criticized Congress and the federal govt for not furnishing just about more than enough funding to assistance his condition offset the significant expenditures inflicted by the coronavirus. Prior to the significant $2 trillion economic relief package was signed into law by President Donald Trump in late March, Cuomo reported it would be “awful” for the Empire Condition.

The newest coronavirus relief invoice, which is envisioned to move the Democratic-led Household afterwards Thursday, does not supply funding for condition and nearby governments. Congress is envisioned to function on at least just one supplemental relief package in the long run.

“I would’ve insisted that condition and nearby funding is in this present invoice,” Cuomo reported at the push meeting, “because I you should not feel they want to fund condition and nearby governments. And not to fund condition and nearby governments is extremely shorter sighted.”

“They want to fund modest company, fund the airlines, I comprehend that, but condition and nearby govt funds law enforcement, and fire, and teachers and universities,” Cuomo reported.

“How do you not fund law enforcement and fire and teachers and universities in the midst of this crisis?” he reported. “When you you should not fund the condition then the condition cannot fund all those companies.”

Cuomo also reported that it was “vicious” for McConnell to describe proposals to federally fund the states devastated by the virus as a “blue-condition bailout.”

The governor paraphrased McConnell’s argument as: “Do not assistance New York condition because it is a Democratic condition.”

“How ugly a assumed,” Cuomo reported. “I indicate, just believe of what he is stating: People died, 15,000 persons died in New York, but they were predominantly Democrats, so why really should we assistance them?”

Cuomo advised reporters that he has not contacted McConnell about the concern of condition funding and that he doesn’t intend to. A spokesman for McConnell did not straight away respond to CNBC’s request for comment about the governor’s remarks.

Republican Maryland Gov. Larry Hogan and Cuomo, the chair and vice chair of the Nationwide Governors Association, wrote to congressional leaders Tuesday requesting an supplemental $500 billion condition stabilization fund. They reported misplaced revenue during the crisis would power states to make “drastic cuts” to systems and damage the economic recovery from the pandemic.

“While the three supplemental expending legislation passed in March have provided relief to the states, none contained immediate funding to offset drastic condition revenue shortfalls. Contrary to the federal govt, states are not able to borrow to fund continuing operations,” the governors wrote.

McConnell’s remarks have divided some associates of his Republican caucus.

Sen. Monthly bill Cassidy, a Republican who signifies Louisiana, home of challenging-strike New Orleans, ideas to introduce a proposal with Democratic Sen. Bob Menendez of New Jersey to supply 50 % a trillion bucks in relief to condition and nearby governments when Congress returns upcoming month.

“We worked challenging to make absolutely sure condition and nearby governments can preserve crucial companies vital for workforce and companies to survive. We should protect Americans’ money long run,” Cassidy reported in a assertion saying the system Sunday.

At the exact same time, a spokesperson for Sen. Rick Scott, R-Fla., reported Thursday that he agrees with McConnell. Before this month, he wrote a letter to Treasury Secretary Steven Mnuchin stating that federal support money “really should not be employed to backfill misplaced revenue or plug holes in poorly intended condition budgets.”

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