Senate Majority Leader Mitch McConnell (R-Ky.) is defending his disapproval of bailing out states.
During a phone interview with Fox News on Thursday, McConnell was asked if he had diverted from his initial suggestion that states should consider file for bankruptcy as opposed to receiving federal aid.
The Kentucky lawmaker noted that approximately $150 billion had been included in previous bills for states and local governments. However, he still believes bankruptcy is an option if legalized.
“Bankruptcy is obviously a decision, if it were legal, would be made at the state level,” McConnell said. “I don’t think many states would choose that option.”
Hear McConnell’s remarks below:
While McConnell insists the federal government is more than happy to assist with coronavirus-related needs, he argues that bailouts may be requested for “bad decisions” states have made in the past.
“The point is, we’re 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. We’re more than happy, and already have, sent $150 billion down to states and localities to deal with the pandemic.”
He went on to note what he thinks should be included in the next stimulus package. McConnell also expressed concern about legal woes that could arise amid the pandemic.
“I think any additional assistance that we provide for state and local government also needs to include some things that are important for everyone else, that is the doctors, the nurses, the hospitals, the brave businesses that will be reopening, concerned about an epidemic of lawsuits that are going to be brought by the plaintiffs all over America in the wake of this pandemic,”
He added, “So we don’t need an epidemic of lawsuits in the wake of the pandemic.”
McConnell’s latest remarks come amid stark criticism for his initial suggestion that states go bankrupt amid the pandemic.
Democratic leaders including House Speaker Nancy Pelos (D-Calif.), Senate Minority Leader Chuck Schumer (D-N.Y.), and New York Gov. Andrew Cuomo (D) have expressed outrage over McConnell’s suggestion.
Cuomo even offered a comparison of federal government funding and distribution between his state and McConnell’s state, as previously reported on IJR.
Despite McConnell’s concerns about bailing people out, Cuomo noted that Kentucky typically takes more than it contributes.
Let’s talk about fairness, Mitch.
— Archive: Governor Andrew Cuomo (@NYGovCuomo) April 23, 2020
NYS puts $116 billion more into the federal pot than we take out.
Kentucky TAKES $148 billion more from the federal pot than they put in.
But we don't deserve help now because the 15,000 people who died here were predominately democrats?
While the Republican lawmaker has made it clear that he, personally, is not in favor of such a bailout, he is open to discussions about state aid in the next stimulus package.
McConnell said, “If we do another rescue package, and we may, we need to take our time, do it right.”