- Another 4.4 million people filed for unemployment last week meaning that now, nearly 20% of Americans are unemployed.
- Meanwhile, states are running out of unemployment funds and other fiscal reserves.
- Despite pressure from Democrats, the most recent stimulus bill does not provide any money to states.
- In an interview, Mitch McConnell said he would rather see states go bankrupt then give them more money, a remark that was criticized by both Democrats and Republicans.
Mitch McConnell Says States Should File for Bankruptcy
Senate Majority Leader Mitch McConnell (R-KY) drew bipartisan criticism Wednesday after saying that he would prefer to see states file for bankruptcy than borrow money from the federal government.
The remark, made during a radio interview, came one day after the Senate passed an interim $484 billion stimulus package. The House is expected to pass the bill Thursday afternoon.
Despite pressure from Democrats, the new legislation went forward without any funding for states.
“I think this whole business of additional assistance for state and local governments needs to be thoroughly evaluated,” McConnell told Hewitt.
“I would certainly be in favor of allowing states to use the bankruptcy route. It saves some cities. And there’s no good reason for it not to be available,” he added. “My guess is their first choice would be for the federal government to borrow money from future generations to send it down to them now so they don’t have to do that. That’s not something I’m going to be in favor of.”
McConnell’s words quickly sparked outrage, especially among Democratic governors.
New York Gov. Andrew Cuomo slammed McConnell’s statement, calling it “one of the saddest, really dumb comments of all time.”
“You talk about one issue where you think you can get past partisanship and pettiness and you talk about communities where people are dying, and you say they are blue states,” he added. “How am I supposed to reopen if you want me to declare bankruptcy?”
Some Republicans also condemned the Majority Leader’s remarks as well.
“McConnell’s dismissive remark that States devastated by Coronavirus should go bankrupt rather than get the federal assistance they need and deserve is shameful and indefensible,” Rep. Pete King (R-NY) said on Twitter.
“To say that it is ‘free money’ to provide funds for cops, firefighters and healthcare workers makes McConnell the Marie Antoinette of the Senate.”
It is unclear how serious McConnell is about this idea, or how viable it would be. States do not have the power to declare bankruptcy, and allowing them to do so would require a change in federal law.
As Bloomberg explains, the idea was floated before during the 2008 recession, but it “drew widespread disdain from Wall Street investors, public employee unions and both Republican and Democratic governors, who said it would unsettle the bond market and cause even the most fiscally sound states to face higher interest rates because of the risk the debt could be wiped out in court.”
At the same time, Democrats have said they will push for funding in the next stimulus bill— a move President Donald Trump said he would support. After a meeting with Cuomo Tuesday, Trump said that states will need assistance.
“And I think most Republicans agree too, and Democrats,” he added. “And that’s part of phase four.”
States Running Out of Money
McConnell’s remarks underscore the dire situation states are finding themselves in when it comes to money.
With more than 26 million people filing for unemployment since mid-March, states are quickly running out of unemployment funding. There is also increased demand for other social safety-net programs that are either wholly or partially state-funded.
At the same time, the impetus of coronavirus-related spending has fallen on states, as the Trump administration continues to put the bulk of the work and responsibility in the hands of governors.
On top of all that, the economic shutdowns have also significantly decreased tax revenues. According to reports, sales taxes revenue—which is the biggest source of revenue for most states— has tanked because businesses are shut down and consumers are staying home.
Income tax revenue has also gone down because more and more people are becoming unemployed and thus not paying income taxes. That is also not helped by the fact that tax filing deadlines have been extended.
Unlike the federal government, the vast majority of states cannot deficit spend if they run out of money. Currently, 46 states and DC have laws that require them to keep a balanced budget, and the four states that do not still have pretty strict rules.
That means in order for states to get more money without federal help, they would either have to raise taxes, make significant budget cuts, or both.
But now is the worst possible time for that. Already, tens of millions of people cannot make ends meet, much less pay higher taxes. On top of that, governments need all the money they can get to pay for social services and other expenses they are already struggling to pay
On April 11, the National Governors Association wrote a letter asking Congress to approve $500 billion in funding for financial assistance to states.
“The recently passed federal CARES Act contained zero funding to offset these drastic state revenue shortfalls,” they wrote. “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 also said that they wanted the stimulus bill to be amended to allow the money given to states exclusively for coronavirus response to be used to replace lost revenue as well.
While $500 billion might seem like a lot to McConnell, that was the exact amount of money that Congress gave to bail out corporations in the $2 trillion stimulus package in March.
See what others are saying: (The New York Times) (Bloomberg) (The Wall Street Journal)
Trump Mocks Florida Gov. “Ron DeSanctimonious” Ahead of Possible 2024 Bid
The former president may announce a bid to take back the White House on Nov. 14, according to his inner circle.
Trump Concocts His Latest Nickname
From “Little Marco” and “Lyin’ Ted” to “Sleepy Joe” and “Crazy Bernie,” former president Donald Trump’s nicknames for his political opponents have been known for their punchy style, but Republicans found it hard to swallow his latest mouthful for Florida Governor Ron DeSantis.
“We’re winning big, big, big in the Republican Party for the nomination like nobody’s ever seen before,” he said Saturday at a rally in Pennsylvania. “Trump at 71, Ron DeSanctimonious at 10%.”
The former president drew rebuke from some allies and conservative commentators for driving a wedge through the GOP three days before the midterm elections.
“DeSantis is an extremely effective conservative governor who has had real policy wins and real cultural wins,” tweeted The Daily Wire’s Matt Walsh. “Trump isn’t going to be able to take this one down with a dumb nickname. He better have more than that up his sleeve.”
“What an idiot,” wrote Rod Dreher, a senior editor at The American Conservative. “DeSantis is a far more effective leader of the Right than Trump was, if, that is, you expect a leader to get a lot done, rather than just talking about it and owning the libs.”
In April 2021, Trump said he would “certainly” consider making DeSantis his running mate for a potential 2024 presidential bid. But as DeSantis established himself as a credible rival to Trump, their relationship grew colder.
Last September, sources told The Washington Post that Trump had called DeSantis “ungrateful” in conversations with advisors. The former president reportedly had not spoken with the governor in months.
The Party of Trump or DeSantis?
One day after his “DeSanctimonious” jab, Trump took to the stage in Florida to support Sen. Marco Rubio’s (R) reelection campaign but grabbed more attention when he seemed to endorse DeSantis for governor.
“The people of Florida are going to reelect the wonderful, the great friend of mine, Marco Rubio to the United States Senate, and you’re going to reelect Ron DeSantis as your governor of your state,” he said to the cheering crowd.
The brief moment of support was overshadowed, however, by the conspicuous absence of DeSantis himself.
Both men held competing, contemporaneous rallies in the same state hundreds of miles apart, and multiple sources told Politico that DeSantis was not invited to Trump’s event, nor did he ask to attend.
The governor has repeatedly refused to say whether he will make a run for the presidency in 2024, but national polling consistently puts Trump ahead of him among Republicans by a wide margin.
Some recent polls, however, have shown DeSantis to lead the former president in specific states like Florida and New Hampshire.
A survey last month found that 72% of GOP voters believe DeSantis should have a great or good deal of influence in the future direction of the party, while just 64% said the same about Trump.
Sources told Axios that Trump’s inner circle is discussing a Nov. 14 announcement for his presidential campaign, timing it to capitalize on the expected post-midterm euphoria as vote counts roll in.
See what others are saying: (The New York Times) (Fox News) (Politico)
The Midterms Are Tomorrow, But We May Not Have Results for a While. Here’s What You Need to Know
The counting of mail-in ballots and possible legal challenges will almost certainly slow the final results.
Election Delays Expected
As Americans gear up for Election Day on Nov. 8, experts are warning that many races, including some of the most highly anticipated ones, may not have the final results in for days or even weeks.
These delays are completely normal and do not indicate that election fraud or issues with vote counting took place. However, like in 2020, former President Donald Trump and other election-denying Republicans could seize on the slow-coming returns to promote false claims to that effect.
There are a number of very legitimate reasons why it could take some time before the final results are solidified. Each state has different rules for carrying out the election process, like when polls close and when ballots can start being counted.
There are also varying rules for when mail-in ballots can be received and counted that can extend when those votes will be tallied. That lag could seriously skew early results in many places because there has been a major rise in the number of people voting by mail.
Red Mirage, Blue Mirage
One very important thing to note is that the early returns seen on election night may not be representative of the final outcomes.
In 2020, there was a lot of talk about a “red mirage,” which is when ballots cast on election day and favoring Republicans are reported first while mail-in ballots used more by Democrats are counted later, creating the appearance that Republicans have a much wider lead.
That phenomenon may very well take place in several key battlegrounds that not only could decide the House and the Senate but also have incredibly consequential state-wide elections of their own.
For example, in Pennsylvania and Wisconsin, election officials cannot start counting mail-in and absentee ballots until Election Day.
Some experts have also speculated that a similar occurrence could occur in Georiga because the suburbs — which have shifted blue in recent years — report their results later than rural counties.
At the same time, there are also some states where the opposite might happen: a blue mirage that makes it seem like Democrats are doing better than they actually are.
Such a scenario is possible in Arizona, where election officials can process mail-in ballots as soon as they receive them, and where a similar trend played out in 2020.
Other Possible Slow-Downs
Beyond all that, there are a number of other factors that could delay when results are finalized.
For example, in Georgia, candidates need to get at least 50% of the vote to win, and if none do, then the top two are sent to a run-off election on Dec. 6. That is a very real possibility for the state’s closely-watched Senate race because there is a libertarian on the ballot who could siphon enough votes from Republican Herschel Walker and Democratic Sen. Raphael Warnock to keep them both below the 50% threshold.
In other words: if control of the Senate comes down to Georgia again — as it did in 2020 and which is a very real possibility — voters may not know the outcome until a month after the election.
Meanwhile, experts also say that legal battles over mail-in ballots could further delay results, or even go to the Supreme Court. According to The New York Times, before Election Day, over 100 lawsuits had already been filed.
In Pennsylvania, for example, the State Supreme Court ruled last week in favor of a lawsuit from Republican groups requesting that mail-in ballots that did not have dates on outer envelopes be invalidated, causing thousands of ballots to be set aside. Multiple rights groups are now suing to get that decision reversed.
DHS Confirms Paul Pelosi Attacker is a Canadian National in the U.S. Illegally
The suspect espoused many political conspiracy theories promoted by the American far-right and told investigators he wished to harm House Speaker Nancy Pelosi to send a message to other U.S. politicians.
Pelosi Attacker’s Immigration Issues
The man accused of attacking Paul Pelosi and trying to kidnap House Speaker Nancy Pelosi (D-Ca.) is a Canadian national currently residing in the United States illegally, according to a statement from the Department of Homeland Security (DHS) late Wednesday.
Law enforcement officials say the suspect embraced far-right conspiracies about U.S. politicians and told investigators he wanted to break the House Speaker’s kneecaps as a lesson to other members of Congress.
Despite his lack of citizenship, the man also allegedly told police he was on a “suicide mission” and had a list of state and federal lawmakers he wanted to target.
In its statement to the media, DHS said that Immigration and Customs Enforcement (ICE) had lodged a “detainer” on the suspect, which is a notice the agency intends to take custody of an individual who could be deported and requests it be notified before that person is released. The detainer, however, likely will not impact the case against him, because deportations are civil proceedings that happen after criminal cases are resolved.
According to several reports, federal records indicate the suspect came to the U.S. legally via Mexico in March 2008. Canadians who travel to America for business or pleasure are usually able to stay in the country for six months without a visa. DHS told The Washington Post the Canadian citizen was admitted as a “temporary visitor” traveling for pleasure.
Before the confirmation from DHS, there was some mixed reporting on how long the suspected attacker has been in America. On Monday, an anonymous U.S. official told the Associated Press the man had legally entered in 2000 but stayed way after his visa expired.
One day later, The New York Times reported he was registered to vote in San Francisco County from 2002 to 2009, and even voted once in 2002.
Heightened Security Concerns
The new revelation comes as lawmakers are facing increased threats, prompting conversations about safety and security with a specific focus on the role of the U.S. Capitol Police (USCP).
On Tuesday, multiple outlets reported that USCP security cameras trained on the Pelosi’s house actually captured the attack, but no one was watching. In a statement Wednesday, the agency said its command center has access to around 1,800 cameras and not all are watched constantly.
The Capitol Police also said that the Pelosi’s home is “actively” monitored “around the clock” when the Speaker is there, but not when she is in Washington.
As a result, many argued that there should be more security and surveillance for the second person in line for the presidency — especially given the threat of violence after the Jan. 6 insurrection and warnings from law enforcement ahead of the midterms.
That was echoed in a scathing letter yesterday sent to Capitol Police by Rep. Zoe Lofgren (D-Ca.), who is one of the most senior Democrats in Congress and heads the Administration Committee.
In her letter, Lofgren noted that the agency “has previously reported to the committee that the speaker receives the most threats of any member of Congress,” and asked why that protection was not extended “to the spouses and/or other family members of the congressional leaders in the presidential line of succession.”
She questioned why the USCP had turned down an offer from the FBI for some of its officers to be part of terrorism task forces investigating threats against Congressmembers and why it had not made a formal agreement with San Francisco police for a car to be posted at the Pelosi’s home 24-hours a day as had been done in the months after Jan. 6.
Lofgren also inquired why the Capitol Police did not direct more threats against lawmakers for prosecution. She noted that members of Congress received at least 9,625 threats in 2021, but just 217 were referred.
Editor’s Note: At Rogue Rocket, we make it a point to not include the names and pictures of mass murders, suspected mass murderers, or those accused of committing violent crimes who may have been seeking attention or infamy. Therefore, we will not be linking to other sources, as they may contain these details.