Pelosi: No more virus bailouts without state and local aid

WASHINGTON (AP) — House Speaker Nancy Pelosi insisted Friday that Congress’ next economic package provide billions for financially reeling state and local governments, foreshadowing a sharp partisan fight ahead in lawmakers' continuing response to the coronavirus pandemic.

“There will not be a bill without state and local” aid, Pelosi, D-Calif., told reporters in the Capitol. Suggesting that Democrats have leverage to address a problem that shows no signs of vanishing soon, she also said, “There will be a bill, and it will be expensive.”

While Pelosi cited no price tag, she said it could be roughly what Congress has already provided for small businesses in previous legislation, which has exceeded $500 billion.

Pelosi's remarks put her in direct conflict with Senate Majority Leader Mitch McConnell, R-Ky. He has expressed opposition to providing more local help, at least for now.

But President Donald Trump has been a wild card, making comments that have wavered between support and skepticism. In addition, some GOP senators and governors have called for more aid for state and local governments.

That suggests an election-season battle in which a compromise might ultimately be necessary.

The virus has battered state budgets from coast to coast, with the dormant economy withering their sales tax revenues and stratospheric job losses driving up their unemployment benefit costs.

But Washington's battle over aiding them has taken on a partisan tone. Some of the hardest-hit states — and most outspoken governors — include reliably Democratic New York, California and Illinois.

Senate Minority Leader Chuck Schumer, D-N.Y., and other congressional Democrats are also demanding more aid for state and local governments.

Pelosi has begun framing the battle in political...