Budget toll from virus hits both Democratic, GOP-led states

Posted at 10:31 AM, Dec 13, 2020
and last updated 2020-12-13 13:09:47-05

(AP) — A hang-up for some congressional Republicans in passing another coronavirus relief package is a request for tens of billions of dollars to go directly to state and local governments.

Government leaders say they need the money to compensate for the drop-off in tax revenue since the COVID-19 pandemic hit, but some in the GOP see the aid as a “bailout” for states run by Democrats.

A recent Moody’s Analytics report found that states and cities face a collective shortfall of $450 billion over the next two years without additional federal relief. That includes many Republican-led states, from Alaska to Texas.

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