| Updated December 22, 2020
For states and thousands of local governments, Congress’ $900 billion stimulus package is about to pass with a gigantic hole in the middle.
The bill contains no new aid for state and city governments as they face down yawning deficits and the prospect of having to slash services the public needs more desperately than ever. Virtually every state has laid off thousands of employees or slashed tens of millions of dollars in crucial services. Cities large and small are on the brink and clamoring to avoid cuts to services as basic as firefighting.
Democrats have proposed up to $1 trillion in state and local aid to stanch the bleeding. But Republicans, under pressure from Senate Majority Leader Mitch McConnell, opposed a new round of state and local aid unless Democrats agreed to sweeping liability protections for businesses. The two sides tabled the question in order to pass a new package before the end of the year.