Aid to states will have conditions.

FOCUS TO BE ON COVID-19 COSTS NOT PAST MISMANAGEMENT

PROTECTION FROM VIRUS RELATED LIABILITY A MUST

States are lining up with long lists of demands for aid from the Federal government. The President has expressed an interest in helping states with Virus related expenses. This same resentment has been voiced by Senate leader Mitch McConnell. It is also obvious that there are going to be limits and conditions on aid to states and Municipalities.

Topping the list of conditions is laws being passed at the state levels to protect business from liability lawsuits from employee's and customers who contact the virus. Without such protection it would be impossible to have any return to a normal economy. There would immediately be a an avalanche of lawsuits, that would tie up most business's in endless litigation. It would almost be impossible to prove guilt or innocence and would result in many making a settlement to get back to work. It could then become a never ending series of suits that would likely put many out of business. Senate leader McConnell has stated that this is a red line for any aid to states.

President Trump has also voiced his opinion that any aid to cities would be conditional on their stance as sanctuary cities. Concerned that these policies cost their cities in both expanded costs and  possibly lost revenue.

Another concern is that many states and municipalities were in poor financial condition, due to their irresponsible fiscal policies, before there was a Virus issue. Many states have a chronic pension plan problem, due to overgenerous government worker pension plans and benefits. High taxes and poor policies which have driven business and citizens out of their states and municipalities. These issues will unlikely become a part of any aid at this time. 

The best course may be to negotiate with each state on an individual basis, rather than a one size fits all avalanche of money from the federal government.

In the Recession bailout, money was handed to the states to stimulate business with infrastructure spending etc. Most of the money went to government employees and their pensions. This should be a  lesson learned. We actually see states still not distributing the unemployment money that was funneled to them by the Federal government. Are they conspiring to use that money for other purposes?

The present attempts to stimulate the economy has been focused properly in giving money directly to people, rather than to the states to use at their discretion. It should all be about the best interests of all the people.