Federal stimulus talks have been stalled once again, after President Donald Trump tweeted that he is instructing the U.S. Senate to stop negotiating until after the election.
But what does this mean for New York?
“Life is options and we don’t have many good ones,” Governor Andrew Cuomo said during a press conference call.
The state lost about $14 billion in revenue fighting the coronavirus, but this massive budget deficit is expected to only continue to grow in future years.
Cuomo says he is banking on either Joe Biden winning the election or that Democrats take control of the Senate. Spending cuts, revenue raisers and potential borrowing will wait until after November results roll out, he promised.
“You can’t undo the damage you did, there is no whoops never mind,” Cuomo explained about making cuts too early.
But local government officials warn that they need this money now.
Ulster County Executive Pat Ryan says that local governments have been on the front line, setting up testing centers, hiring nurses and more.
“We’ve barely been hanging on and now to see the can kicked even further and to not necessarily to even have a clear sense of the timing or the scale of the relief I can confidently say for everyone in the state, and I’m sure across the country, local governments are just so disheartened by this,” Ryan said about federal aid once again being delayed.
Stalled stimulus talks are also impacting small businesses.
According to a new report released by the National Federation of Independent Businesses, half of all small businesses say they will need additional support to survive the next 12 months.
New York State Director for NFIB Greg Biryla says 86 percent of small businesses have already used all the funding they received from the Personal Protection Program.
“We’ve had incredibly constructive talks with Congressman Tom Reed. We’ve been in incredibly constructive talks with Congressman Anthony Brindisi,” Biryla explained. “And I think that is emblematic of the sentiment across the country. There is broad bipartisan support to help local small businesses that are just struggling immensely.”
President Trump later tried to walk back a few of his tweets later on Tuesday, saying he would be in support of trying to pass stand-alone bills, such as stimulus checks and relief for Airport workers.
However, both Biryla and Ryan say passing just pieces like these only delays addressing the main problem.
“Doing it piecemeal when we have such wide economic disruption will take forever to be effective,” Biryla said. “The beauty of the PPP program, while imperfect, it got billions of dollars out the door quickly into the hands, into the bank accounts of small businesses. It kept employees on the payroll or brought them back.”
“Just get together and do your job,” Ryan said about Congressional leaders. “I mean honestly get together and do your job.”
Over 70 percent of Americans say they support another stimulus check according to a recent Gallup poll.