States plan for cuts as Congress deadlocks on more virus aid

Posted at 10:24 AM, Sep 06, 2020
and last updated 2020-09-06 11:24:58-04

State budget cuts are mounting and reserve funds are dwindling as governors and lawmakers address declining tax revenue and increased costs caused by the coronavirus pandemic.

Many states and local governments had hoped Congress would pass another round of aid after receiving $150 billion from a relief bill this spring.

But Congress has deadlocked for months over the size, scope, and necessity of more help.

With the U.S. Senate returning to session next week, some states are renewing their push for aid.

Without it, additional cuts are likely. Some governors also have begun proposing tax and fee increases.

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