Coronavirus-related business closures and job losses reduced state income and sales tax revenues. State budget shortfalls resulting from lost tax revenue are projected to total between $41 billion and $110 billion in fiscal year 2020. In FY 2021, shortfalls are projected between $121 billion and $290 billion.
Between March and August 2020, Congress and President Donald Trump (R) appropriated funds to assist state and local governments with revenue shortfalls caused by decreased tax revenue twice.
Historical data shows:
• As of 2019, 30.7% of total state spending was derived from federal funds.
• The number of federal programs through which aid is appropriated—more than 1,300 as of May 2019—tripled between the 1980s and 2020.
• Between FY 2017 and FY 2019, total state spending increased at the fastest rate since the Great Recession.
Advocates for increased assistance for states have called on Congress and President Trump to appropriate additional federal funds to offset declines in tax revenue and budget shortfalls. A group of directors of seven nonpartisan governmental associations wrote, “If we want our nation’s health and economy to recover, state and local governments must be part of the solution.” The commentary criticized the HEALS Act introduced by Sen. Chuck Grassley (R-Iowa) for not providing state or local funding.
Opponents of increased assistance acknowledge that the economic consequences of COVID-19 are substantial, but say reckless state spending—enabled by increased federal aid over time—exacerbated the economic fallout from COVID-19. Treasury Secretary Steven Mnuchin said, “The president is not going to bail out Chicago and New York and other states that prior to the coronavirus were mismanaged.”
Kara Eastman defeated Ann Ashford and Gladys Harrison in the Democratic primary for Nebraska’s 2nd Congressional District on May 12, 2020. Eastman received 61.8% of the vote, followed by Ashford with 31.6% and Harrison with 6.6%. She faces incumbent Don Bacon (R) in the November 3 general election, as she did in 2018. In 2018, Bacon defeated Eastman 51% to 49%.
Kweisi Mfume (D) defeated Kimberly Klacik (R) in the special general election for Mayland’s 7th Congressional District. He will fill the vacancy left by Elijah Cummings (D), who died in October 2019. As of Wednesday morning, Mfume led with 72.5% of the vote to Klacik’s 26.5%. Mfume cannot be sworn into office until after results are certified by the Maryland Board of Elections, which could happen as early as May 8.
Ann Ashford, Kara Eastman, and Gladys Harrison are running in the Democratic primary for Nebraska’s 2nd Congressional District on May 12, 2020. Eastman and Ashford have launched television ads and lead in fundraising and endorsements, but Harrison has shared in the race’s media coverage.
Christy Smith (D) and Mike Garcia (R) are running in a special general election on May 12, 2020, for California’s 25th Congressional District. In response to the coronavirus pandemic, California Gov. Gavin Newsom signed an executive order providing for all-mail ballots for special election voters. The election will fill the vacancy left by Katie Hill (D), who resigned the seat on November 1, 2019. Smith received 35.8% of the vote to Garcia’s 25.1% in the March 3 top-two primary.
Mike Siegel and Pritesh Gandhi will compete in the Democratic primary runoff for Texas’ 10th Congressional District on July 14, 2020. The runoff was originally scheduled for May 26, 2020, but Governor Greg Abbott (R) postponed the election due to the coronavirus pandemic. The winner will advance to the general election on November 3. Siegel received 44.0% of the vote to Gandhi’s 33.1% in the March 3 primary election.
