McConnell received strong criticism from governors in both parties for suggesting that states that are hit the hardest by the crisis should be allowed to opt for bankruptcy protection rather than giving them a federal bailout. He made these comments on Wednesday during a radio interview.
Responding to a question on the syndicated Hugh Hewitt radio show, McConnell said he supports the idea of allowing states to choose the bankruptcy route. “It’s saved some cities, and there’s no good reason for it not to be available,” he explained.
The host referred to Connecticut, Illinois, and California as states that had provided a lot to public employee unions, and McConnell revealed that he isn't in favor of taking on more debt for any rescue. Pointing out that most of the states are facing financial strain due to their pension obligations, he said many states have taken advantage of bankruptcy protections to restructure the finances.
As expected, McConnell’s remarks weren't received well by the state and local officials with New Jersey Governor Phil Murphy admitting that he was stunned by the remarks made by the Senate Majority Leader. Murphy, a Democrat deemed his comments as completely and extremely irresponsible.
Murphy noted that without states receiving cash, governors will be left with no choice but the gut the living daylights out of their states. Aside from that, they'd be forced to slash the budget and eliminate the services required by the people.
Responding to these comments via a tweet, New York Mayor Bill de Blasio, who is also a Democrat, wrote McConnell, is bent on ensuring police officers lose their jobs, and firefighters go broke. His tweet also suggested that McConnell wants hospitals to close and those hospitalized to be thrown out on the street.
During an interview with Bloomberg Television Wednesday, House Speaker Nancy Pelosi opened up about McConnell’s statements. She said a major package of aid for the state, as well as the local government, will be included in the next stimulus legislation advised by the congress.
It is highly likely that President Donald Trump may not agree with McConnell as well. Following a meeting with New York Gov. Andrew Cuomo, Trump confirmed that states will require assistance. Touting it as a part of phase four, the POTUS noted that most Republicans and Democrats agree as well.
At a briefing in Albany, Cuomo called McConnell’s idea one of the dumbest of all times, warning that bankruptcy declarations by several states would cause this national economy to collapse. McConnell had blocked additional state and local aid in the new relief package, which already passed Senate and is set for a vote Thursday in the House.