Governors Ask For $500 Billion In Federal Relief For Coronavirus

ANNAPOLIS, MD — Maryland Gov. Larry Hogan and New York Gov. Andrew Cuomo are pushing back against the so-called CARES Act. They requested a $500 billion appropriation to account for the money that has come out of state coffers to cover costs during the new coronavirus pandemic.

The acronym CARE stands for "Coronavirus Aid, Relief, and Economic Security," but in a statement on behalf of the National Governors Association, they said it "contained zero funding" to help state governments.

“Governors across the country are leading the on-the-ground response to the national COVID-19 pandemic, implementing a variety of stay at home orders and other aggressive measures that are successfully flattening the curve of the spread of the virus," the governors wrote on behalf of the National Governors Association of which Hogan, a Republican, is chair and Cuomo, a Democrat, is vice chair.

"While these public health strategies are working to protect the American people, they result in catastrophic damage to state economies," they wrote. Maryland's comptroller on Friday projected a $2.8 billion shortfall for the state due to the coronavirus pandemic. New York is facing a $10 to $15 billion shortfall for the fiscal year.

"Despite this grave challenge, the recently passed federal CARES Act contained zero funding to offset these drastic state revenue shortfalls," the governors said. "To stabilize state budgets and to make sure states have the resources to battle the virus and provide the services the American people rely on, Congress must provide immediate fiscal assistance directly to all states."

The governors specified how much assistance was required.

"Congress must appropriate an additional $500 billion specifically for all states and territories to meet the states’ budgetary shortfalls that have resulted from this unprecedented public health crisis," Hogan and Cuomo wrote. "This critical stabilization funding for states must be separate from much-needed fiscal stabilization for local governments."

Should the not get financial relief, the governors said the consequences would be severe.

"In the absence of unrestricted fiscal support of at least $500 billion from the federal government, states will have to confront the prospect of significant reductions to critically important services all across this country, hampering public health, the economic recovery, and—in turn—our collective effort to get people back to work," the governors wrote.

"We must be allowed to use any state stabilization funds for replacement of lost revenue, and these funds should not be tied to only COVID-19 related expenses," said the governors. "Congress must amend the CARES Act to allow this flexibility for existing federal funding."