In acknowledging that states like New York and New Jersey can count on more federal aid in the next massive relief bill, the Kentucky Republican is cracking the door to an agreement with congressional Democrats after taking a hard line with his recent suggestion that states go “the bankruptcy route.”
But as befits his reputation for tough tactics, he said that would demand that his liability proposal be included in any deal with Speaker Nancy Pelosi (D-Calif.). Similarly, Pelosi has said that any new coronavirus bill will have to include money for local governments.
“I’m open to additional assistance. It’s not just going to be a check, though, you get my point?” McConnell said. “We’re not writing a check to send down to states to allow them to, in effect, finance mistakes they’ve made unrelated to the coronavirus.”
McConnell also slightly softened his stance that perhaps some states might go bankrupt rather than be rescued by the federal government. But he did not back away entirely from last week’s comments that he would be in favor of some states declaring bankruptcy to escape crippling debts.
Under siege from Democrats seeking to oust him as majority leader in November, McConnell said the entire episode was “a classic case of taking things out of context” and that he never expected many states to use that option even if it were available to them.
“The fundamental point I was trying to make is that we’re not interested in borrowing money from future generations to help states solve problems that they created themselves,” McConnell said. “The bankruptcy suggestion would have been optional anyway. I wasn’t assuming many of them were going to take that option.”
Taken together, McConnell’s comments suggest another large recovery package is not out of the question in the coming weeks despite some GOP complaints about rising deficits.
Senate Republicans like Bill Cassidy of Louisiana also have endorsed sending billions more to states, and several other GOP senators have expressed a clear preference to start hammering out a new bill.
But it’s still going to be a herculean effort. And McConnell said he hasn’t talked to Pelosi about it yet.
“As soon as we can reach an agreement, we’ll do it,” he said.
Source: politico.com
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