Federal Aid for States Appears to Collapse

No way forward?

The latest news reports indicate that the "stimulus" negotiations have collapsed over the issue of aid to state and local governments. As we have noted in earlier postings, the state budget has been doing better than forecast last June. Nonetheless, added federal assistance would likely filter down to the UC budget, but it may not come.

From the LA Times: An emerging $900-billion COVID-19 relief package from a bipartisan group of lawmakers has all but collapsed after Senate Majority Leader Mitch McConnell said GOP senators would not support $160 billion in state and local funds as part of a potential tradeoff in the deal.

McConnell’s staff conveyed to top negotiators Thursday that he sees no path to agreement on a key aspect of the existing proposal: a slimmed-down version of the liability shield that he wants for companies and organizations facing potential COVID-19 lawsuits in exchange for the state and local funds that Democrats want. The Kentucky Republican criticized “controversial state bailouts” during a speech in the Senate, insisting on a more targeted aid package...

Full story at https://www.latimes.com/politics/story/2020-12-11/covid-19-relief-all-but-collapses-mcconnell-resists-state-aid