Three authors consider how Republicans captured power and how Democrats responded – their work sheds light on how federalism might meet the present challenge
On 30 June, a bill of at least $765bn came due for the 50 states. Unlike the national government, these jurisdictions cannot print money or run deficits without violating their constitutions. States rely on sales and income taxes for revenue, which along with much of the economy has collapsed under the coronavirus pandemic. Without a big infusion of federal funds, states may have to lay off employees, take a scythe to social service programs and, who knows, maybe defund the police as well.
Federal help may not arrive soon. States received $150bn through the Cares Act for Covid-19 relief and the House passed a successor in May, the Heroes Act, which contains $915bn in flexible aid. But the Senate majority leader, Mitch McConnell, has said he opposes borrowing more, suggesting instead states be allowed to file for bankruptcy.
Continue reading…Three authors consider how Republicans captured power and how Democrats responded – their work sheds light on how federalism might meet the present challengeOn 30 June, a bill of at least $765bn came due for the 50 states. Unlike the national government, these jurisdictions cannot print money or run deficits without violating their constitutions. States rely on sales and income taxes for revenue, which along with much of the economy has collapsed under the coronavirus pandemic. Without a big infusion of federal funds, states may have to lay off employees, take a scythe to social service programs and, who knows, maybe defund the police as well.Federal help may not arrive soon. States received $150bn through the Cares Act for Covid-19 relief and the House passed a successor in May, the Heroes Act, which contains $915bn in flexible aid. But the Senate majority leader, Mitch McConnell, has said he opposes borrowing more, suggesting instead states be allowed to file for bankruptcy. Continue reading…