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While House Democrats are focused on the approximately $1 trillion for state and local governments contained in their recently introduced HEROES Act, Senate Republicans are discussing alternatives to aid states and municipalities as they craft their next response package.
Senator John Kennedy (R-LA), is pushing to allow states more flexibility in the use of the $150 billion allocated to them under the CARES Act passed last month. The proposal would allow states and local governments that received money to use it on non-coronavirus expenses but would prohibit states from using the money to shore up their pension funds. Sens. Dan Sullivan (R-AK) and Mike Rounds (R-SD) have introduced similar proposals, and a group of GOP Senators met with President Trump and administration officials on Tuesday to discuss the issue. Kennedy described the meeting as “very positive”, but Senator Rick Scott (R-FL) claimed otherwise, saying he spoke to the President over the weekend and was told the White House would not support any state “bailouts”.
Senate Democrats indicated they would likely be supportive of such a proposal, though they are still pushing for more money overall for state and local governments in any additional spending package. Senate Minority Whip Dick Durbin (D-IL) spoke in favor of Kennedy’s proposal, saying he didn’t see it as an alternative that would harm the chances of any further aid.
Sens. Bill Cassidy (R-LA) and Robert Menendez (D-NJ) have introduced a bill to push for such additional aid, calling for $500 billion to assist states and municipal governments. Cassidy urged his colleagues to act quickly, saying he’d like to see action on state and local aid while holding off on other issues.
The Senate’s timeline is currently unclear, with many Senate Republicans indicating they’d still like to wait and see how the CARES Act is working before taking any additional measures. The House of Representatives is still scheduled to vote on the HEROES Act today.
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