White House Economic Adviser Leaves Door Open for State and Local Aid in Next Relief Bill

Strategic Insights -

President Donald Trump's hardline immigration approach may yet be linked to aid for states and cities in the next potential coronavirus relief bill. Speaking to CNN, White House economic adviser Larry Kudlow hinted at the possibility, saying the president "has from time to time spoken about linking that to sanctuary cities." Sanctuary cities do not comply with federal attempts to detain and deport undocumented migrants under Trump's approach.

Meanwhile, lawmakers are discussing a fourth coronavirus relief bill amid a dire economic situation, with more than 30 million people having filed for unemployment in the past six weeks. Democrats are calling for aid to cities and states, while some governors have warned of massive layoffs if federal help is not provided. New Jersey governor Phil Murphy, a Democrat, said federal assistance would be crucial to save jobs in essential services such as firefighting, police, and teaching.

The White House is "in kind of a pause period," Kudlow said, hinting that Trump's threat to link aid to concessions on immigration policy could yet be attempted. However, observers have questioned the propriety of tying economic aid to policy priorities in a time of national crisis.

Key Takeaways:

  • The White House has not ruled out any elements in the next potential coronavirus relief bill, including more money for state and local governments and the small business program.
  • President Trump has spoken about linking aid to sanctuary cities, but it's unclear whether this would be legally possible.
  • Democrats are calling for aid to cities and states, while some governors have warned of massive layoffs if federal help is not provided.
  • More than 30 million people have filed for unemployment in the past six weeks, and the economy is still in a "terrible, contractionary phase."
  • The White House is in discussions with lawmakers to determine the need for another stimulus bill.
  • The current coronavirus relief bill includes aid for small businesses, but it's unclear whether this program will be increased further.
  • Some governors, such as Maryland's Larry Hogan, have criticized the White House for tying "divisive politics" to the need for coronavirus relief.
  • The US has recorded more than 1.1 million coronavirus cases and over 66,000 deaths, with more than 30 million people having filed for unemployment in the past six weeks.

Statistics:

  • Over 1.1 million coronavirus cases have been recorded in the US.
  • The death toll from the coronavirus has passed 66,000.
  • More than 30 million people have filed for unemployment in the past six weeks.
  • The US economy is still in a "terrible, contractionary phase."
  • The White House has proposed a possible second-half rebound in the economy this year, with 2021 potentially being a "spectacular year" with the right set of policies.

Sources:

  • CNN: "White House economic adviser Larry Kudlow says no 'decision yet' on linking aid to sanctuary cities"
  • Fox News: "New Jersey governor Phil Murphy calls for federal aid to save jobs in essential services"
  • CBS: "Illinois governor JB Pritzker rejects Trump's argument that states with budget problems before the coronavirus outbreak should not be bailed out"
  • NBC: "Michigan adviser Dr Joneigh Khaldun warns against moving too fast on relaxing social distancing guidelines"