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President Trump and Senate Majority Leader McConnell argue that doing more to help states cope with COVID-19’s severe economic fallout would just ”bail out” Democratic-led states, with they portray as fiscally wasteful.
But, in reality, unemployment is rising sharply in all states, devastating their income and sales tax revenue.
Both “red” and “blue” states will need more fiscal relief to avoid having to make deep budget cuts to meet their budget requirements, which would hurt families and communities while worsening the recession.
We have also updated our state budget tracker with states’ new estimates on revenue shortfalls. While the full magnitude is not yet clear, state revenues are declining precipitously and costs are rising sharply with many businesses closed and tens of millions pf people newly unemployed.
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