Governors Ask For Funding Flexibility And Aid, Criticize Federal Efforts In Early Days Of Pandemic
Governors testified virtually at a congressional hearing to warn that their states face a financial crisis since they are forced to balance their budgets -- unlike the federal government. They also laid out their frustration with the federal government's supply issues earlier in the year.
Los Angeles Times:
Governors Warn Congressional Leaders Of Billion-Dollar Shortfalls Due To Coronavirus
Three governors testified to Congress in a virtual hearing Tuesday, giving updates on the tolls of coronavirus, plans for reopening and the projected billion-dollar impact of the pandemic on state finances. “COVID-19 has wreaked havoc on our budget,” Democratic Michigan Gov. Gretchen Whitmer told the House Committee on Commerce and Energy. The state faces a projected $6.2-billion drop in revenue in the next two years, and by some projections, over the next three years state budget shortfalls across the country are estimated to reach $765 billion. (Wailoo, 6/2)
The Hill:
Governors Detail Frustrations With Trump Over COVID-19 Supplies
Two governors told lawmakers on Tuesday that their states are still struggling to obtain COVID-19 supplies from the federal government, almost three months into the pandemic. Michigan Gov. Gretchen Whitmer (D) and Colorado Gov. Jared Polis (D) said they’re facing challenges procuring tests and masks, adding to concerns as they prepare for a potential second wave of the pandemic in the fall.States get inaccurate answers from the federal government about when supplies will be coming, and deliveries are often late, if they come at all, the two governors told members of the House Energy and Commerce Oversight and Investigations Subcommittee. (Hellmann, 6/2)
Elsewhere on Capitol Hill —
Roll Call:
Sens. Lee, Johnson Slow Bill Tweaking SBA COVID-19 Loan Program
Two Republican holdouts are threatening to prevent speedy passage of a bill that would modify a popular coronavirus loan program for small businesses over the temporary initiative’s end date. Senate Small Business and Entrepreneurship Chairman Marco Rubio, R-Fla., said GOP Sens. Mike Lee of Utah and Ron Johnson of Wisconsin are holding up the bill because they want the Paycheck Protection Program to expire in August rather than December. (Saksa, 6/2)
The Oklahoman:
Horn Wants National Debt Addressed In Next Coronavirus Relief Bill
Oklahoma Congresswoman Kendra Horn is part of a bipartisan group of 60 U.S. Representatives who have sent a letter to House leadership urging that a strategy for coping with the growing national debt be included in the next coronavirus relief bill. (Ellis, 6/3)
The New York Times:
Government's Coronavirus Relief Plan Leaves Out Major Employers
One of the biggest questions surrounding the government’s efforts to help businesses struggling amid the coronavirus pandemic is whether the programs are constructed in a way that will prevent a wave of bankruptcies, keeping a short-term shock from turning into drawn-out economic pain. A new analysis from a group of Harvard University researchers suggests that the answer, should markets turn ugly again, might be no. (Smialek, 6/2)
ABC News:
Doctor Who Advised Homeland Security Testifies Against COVID-19 Protocols In Immigration Detention
A doctor contracted by the Department of Homeland Security to advise on detention health conditions appeared before Congress on Tuesday to personally criticize the Trump administration as COVID-19 continues to spread through civil immigration detention centers. Dr. Scott Allen, an independent health expert and medical school professor, told lawmakers that the novel coronavirus' persistence in Immigration and Customs Enforcement facilities was in part due to "some gaping holes" in Centers for Disease Control and Prevention guidelines. (Owen, 6/2)
And in more news about the economic toll of the virus —
The Wall Street Journal:
How Many U.S. Workers Have Lost Jobs During Coronavirus Pandemic? There Are Several Ways To Count
Friday’s U.S. jobs report from the Labor Department is expected to show U.S. employers shed nearly 30 million positions from payrolls this spring as a result of the coronavirus pandemic and related shutdowns—but that is just one of several varying estimates of job destruction. Other data suggest layoffs might have topped 40 million, while another count shows only about 20 million are tapping unemployment benefits. No matter the measure, job loss triggered by the pandemic is historically high and likely to leave a lasting mark on the U.S. economy. (Morath, 6/3)
ProPublica:
How Germany Saved Its Workforce From Unemployment While Spending Less Per Person Than The U.S.
The global coronavirus pandemic threw Petra Hamann’s job into peril faster than just about any other. She is a physical therapist, a profession that is all about close proximity to others, with a clientele that leans toward older people, exactly the population most vulnerable to the virus. In March, she and the rest of the 10-person therapy group that employed her lost virtually all of their clients, first as a result of clients’ fears about coming in for appointments, then as a result of government stay-at-home orders. But neither Hamann nor anyone else in her group lost their job. Instead, they were kept on and, even while having zero clients, received 60% of their normal pay. (MacGillis, 6/3)
NPR:
Millions Of Americans Skipping Payments As Wave Of Defaults And Evictions Looms
Americans are skipping payments on mortgages, auto loans and other bills. Normally, that could mean massive foreclosures, evictions, cars repossessions and people's credit getting destroyed. But much of that's been put on pause. Help from Congress and leniency from lenders have kept impending financial disaster at bay for millions of people. But that may not last for long. The problem is, these efforts aim to create a financial bridge to the future for people who've lost their income in the pandemic — but the bridge is only half built. (Arnold, 6/3)
Las Vegas Review-Journal:
Las Vegas Gig Workers Trouble With PUA System, Lack Of Communication
Many of Nevada’s gig workers, independent contractors and self-employed workers trying to receive unemployment benefits say they are frustrated by the information — or lack thereof — coming from the agency and feel like they can’t catch a break. Some claimants have become so frustrated they’ve organized a protest. (Hudson, 6/2)
