"Congress needs to send state governments billions of dollars to avoid an economic disaster"

A week ago, President Trump, Democratic leaders in Congress, and the National Governors Association's bipartisan leaders all expressed support for Washington providing fiscal relief for cash-strapped states in the next stimulus measure.

They recognized that, due to what's becoming the worst economic downturn since the Great Depression, states are facing budget shortfalls of unprecedented size and — without relief — they'll start laying off first responders, teachers, and health care workers and cutting spending in other ways that will deepen the recession.

Now, however, Trump, Senate Majority Leader Mitch McConnell, and other Senate Republicans are suggesting that the state budget crisis reflects the fiscal irresponsibility of Democrat-run states and arguing that Washington shouldn't bail them out because that would only reward their profligacy...

Unlike the federal government, almost all states must balance their budgets each year. As their current fiscal years draw to a close on June 30, their shrinking revenues are creating huge shortfalls that they must fill this spring as well as projections of more enormous shortfalls for the coming years.

At the Center on Budget and Policy Priorities, we project states will have a combined $650 billion in shortfalls from fiscal years 2020 through 2022. Many local governments will face shortfalls on top of that...

Without significant relief from the federal government, states will have to take drastic action to balance their budgets, such as slashing education and healthcare, laying off teachers and other workers, and canceling contracts with businesses.