Capitol Alert

Western governors join Gavin Newsom in $1 trillion appeal to Congress for coronavirus aid

Four western governors joined California Gov. Gavin Newsom in asking Congress for $1 trillion in aid for states and local governments reeling from the economic damage caused by the coronavirus pandemic.

“This is the requirement of this moment,” Newsom said of the request during his Monday press briefing.

The letter to congressional leaders is signed by Democratic Govs. Newsom, Jared Polis of Colorado, Steve Sisolak of Nevada, Kate Brown of Oregon and Jay Inslee of Washington, as well as Democratic legislative leaders from each state.

The only Republican to sign the letter was Assembly Minority Leader Marie Waldron of Escondido.

“Red and blue states alike all are faced with the same COVID-19 math, as are Democratic and Republican mayors across our states. The moment requires unprecedented partnership from all of us – across every level of government and across party,” the letter read in part.

The states are grappling with a sudden, deep recession spurred by the coronavirus outbreak. Newsom last week, for instance, projected a $54 billion deficit for the coming budget year. His office anticipates years of depressed revenue and an unemployment rate topping 18 percent.

The governors are making a case for a new economic relief package from Congress, where Republicans and Democrats are divided over how much aid to send to states. It would follow a $2.2 trillion economic assistance package that President Donald Trump signed in late March, which expanded unemployment assistance and small business loans.

House Speaker Nancy Pelosi, D-San Francisco, has suggested she’s open to an aid package in the range of Newsom’s recommendation. The request exceeds that of the National Governors Association, which has asked the federal government for $500 billion.

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The governors’ request may meet resistance in the Senate, where Majority Leader Mitch McConnell, R-Kentucky, said in an interview with Fox News’ “America’s Newsroom” that “we are not interested in borrowing money from future generations to send down to states to help them with bad decisions they’ve made in the past unrelated to the coronavirus epidemic.”

Newsom said during a Monday press conference that the money would help pay for public safety, public health and education during a crisis.

Newsom in describing the joint argued the state’s looming deficit was caused by the outbreak, not poor financial decisions. Prior to the outbreak, Newsom had projected a $5.6 billion surplus with room to augment its reserves.

“It’s not just states asking for bailouts, quite the contrary,” Newsom said. “It’s requesting that we support those that we need the most at this time.”

This story was originally published May 11, 2020 at 2:51 PM.

AS
Andrew Sheeler
The Sacramento Bee
Andrew Sheeler is a former reporter for The Sacramento Bee’s Capitol Bureau.
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