US states that mismanaged their finances before the novel coronavirus (COVID-19) pandemic should not expect to be bailed out by the federal government, though states like New York and New Jersey, which spent heavily to fight the pandemic, deserve more reimbursement than others, Treasury Secretary Steve Mnuchin said on Monday
WASHINGTON (Pakistan Point News / Sputnik - 28th April, 2020) US states that mismanaged their finances before the novel coronavirus (COVID-19) pandemic should not expect to be bailed out by the Federal government, though states like New York and New Jersey, which spent heavily to fight the pandemic, deserve more reimbursement than others, Treasury Secretary Steve Mnuchin said on Monday.
"[For] states that were mismanaged, there shouldn't be a bailout... because of the coronavirus," Mnuchin told CNBC. "I would also say states that had specifically large expenses as a result of the coronavirus like New York and New Jersey, I think it was the right thing that the federal government gave them money."
In March, the Trump administration rolled out a $2.1 trillion stimulus package approved by Congress that included reimbursement for states spending on fighting the COVID-19 pandemic.
However, some states have complained that the funds they received were not enough. New York State Governor Andrew Cuomo described the $3.8 billion allocation as "terrible," saying the COVID-19 pandemic had made the state some $15 billion poorer. New York State is the epicenter of the COVID-19 outbreak in the United States.
President Donald Trump and other White House officials have announced in recent weeks that the administration was working on a second stimulus package to provide further relief, including for states.
But Senate Majority Leader Mitch McConnell has said states that did not manage their finances properly should be allowed to go bankrupt.
