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McConnell Faces Bipartisan Backlash for Saying States Should Declare Bankruptcy

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  • 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)

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Supreme Court Rules High School Football Coach Can Pray on Field

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All of our rights are “hanging in the balance,” wrote Justice Sonia Sotomayor in a dissenting opinion.


Court’s Conservatives Break With 60 Years of History

The Supreme Court on Monday ruled in favor of a former high school football coach who lost his job after he refused to stop praying on the field at the end of games.

Joseph Kennedy, who was hired at Bremerton High School in Washington State in 2008, kneeled at the 50-yard line after games for years and prayed. He was often joined by some of his players, as well as others from the opposing team.

In 2015, the school asked him not to pray if it interfered with his duties or involved students.

Shortly after, Kennedy was placed on paid administrative leave, and after a school official recommended that his contract not be renewed for the 2016 season he did not reapply for the position.

Kennedy sued the school, eventually appealing the case to the Supreme Court.

The justices voted 6 to 3, with the liberal justices dissenting.

“Respect for religious expressions is indispensable to life in a free and diverse republic — whether those expressions take place in a sanctuary or on a field, and whether they manifest through the spoken word or a bowed head,” Justice Neil Gorsuch wrote in the majority opinion.

“Here, a government entity sought to punish an individual for engaging in a brief, quiet, personal religious observance,” he added.

Justice Sonia Sotomayor wrote a dissenting opinion.

“Today’s decision is particularly misguided because it elevates the religious rights of a school official, who voluntarily accepted public employment and the limits that public employment entails, over those of his students, who are required to attend school and who this court has long recognized are particularly vulnerable and deserving of protection,” she said.

“In doing so, the court sets us further down a perilous path in forcing states to entangle themselves with religion, with all of our rights hanging in the balance.”

The defense in the case argued that the public nature of Kennedy’s prayers put pressure on students to join him, and that he was acting in his capacity as a public employee, not a private citizen.

Kennedy’s lawyers contended that such an all-encompassing definition of his job duties denied him his right to self-expression on school grounds.

“This is just so awesome,” Kennedy said in a statement following the decision. “All I’ve ever wanted was to be back on the field with my guys … I thank God for answering our prayers and sustaining my family through this long battle.”

Religious Liberty or Separation of Church and State?

Sixty years ago, the Supreme Court decided that the government cannot organize or promote prayer in public schools, and it has since generally abided by that jurisprudence.

But the court led by Chief Justice John Roberts has been increasingly protective of religious expression, especially after the confirmation of three conservative Trump-appointed judges.

Reactions to the ruling were mostly split between liberals who saw the separation of church and state being dissolved and conservatives who hailed it as a victory for religious liberty.

Americans United for the Separation of Church and State, which represented the Bremerton school district, said in a statement that the ruling “gutted decades of established law that protected students’ religious freedom.”

“If Coach Kennedy were named Coach Akbar and he had brought a prayer blanket to the 50 yard line to pray after a game,” one Twitter user said, “I’ve got a 401(k) that says this illegitimate, Christofascist SCOTUS rules 6-3 against him.”

“The people defending former Coach Kennedy’s right to kneel on the field after the game to pray – are the ones condemning Colin Kaepernick’s right to kneel on the field to protest police brutality against Black Americans,” another user wrote.

Others, like Republican Congressmember Ronny Jackson and former Secretary of State for the Trump administration Mike Pompeo, celebrated the ruling for protecting religious freedom and upholding what they called the right to pray.

“I am excited to build on this victory and continue securing our inalienable right to religious freedom,” Pompeo wrote.

See what others are saying: (The Washington Post) (The New York Times) (Fox News)

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Rep. Schiff Urges DOJ to Investigate Trump for Election Crimes: “There’s Enough Evidence”

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“When the Justice Department finds evidence of criminal potential criminal wrongdoing, they need to investigate,” the congressman said.


Schiff Says DOJ Should Launch Inquiry

Rep. Adam Schiff (R-Ca.) told Rogue Rocket that he believes there is “certainly […] enough evidence for the Justice Department to open an investigation” into possible election crimes committed by former President Donald Trump.

Schiff, who took the lead in questioning witnesses testifying before the House committee investigating the Jan. 6 insurrection on Tuesday, said that it will be up to the DOJ to determine whether “they have proof beyond a reasonable doubt” of criminal activity, but added that an investigation must first be launched.

“Donald Trump should be treated like any other citizen,” the congressman said, noting that a federal judge in California has already ruled that Trump and his allies “likely” engaged in multiple federal criminal acts. “When the Justice Department finds evidence of criminal potential criminal wrongdoing, they need to investigate.”

“One of the concerns I have is it’s a year and a half since these events. And while […] there’s an investigation going on in Fulton County by the district attorney, I don’t see a federal grand jury convened in Atlanta looking into this, and I think it’s fair to ask why,” Schiff continued, referencing the ongoing inquiry into Trump’s attempts to overturn the election in Georgia.

“Normally, the Justice Department doesn’t wait for Congress to go first. They pursue evidence and they have the subpoena power. They’re often much more agile than the Congress. And I think it’s important that it not just be the lower-level people who broke into the Capitol that day and committed those acts of violence who are under the microscope,” he continued. “I think anyone who engaged in criminal activity trying to overturn the election where there’s evidence that they may have engaged in criminal acts should be investigated.”

Schiff Takes Aim at DOJ’s Handling of Committee Subpoenas

Schiff also expressed frustration with how the DOJ has handled referrals the committee has made for former Trump officials who have refused to comply with subpoenas to testify before the panel.

“We have referred four people for criminal prosecution who have obstructed our investigation. The Justice Department has only moved forward with two of them,” he stated. “That’s not as powerful an incentive as we would like. The law requires the Justice Department to present these cases to the grand jury when we refer them, and by only referring half of them, it sends a very mixed message about whether congressional subpoenas need to be complied with.”

As far as why the congressman thought the DOJ has chosen to operate in this manner in regards to the Jan. 6 panel’s investigation, he said he believes “the leadership of the department is being very cautious.” 

“I think that they want to make sure that the department avoids controversy if possible, doesn’t do anything that could even be perceived as being political,” Schiff continued. “And while I appreciate that sentiment […] at the same time, the rule of law has to be applied equally to everyone. If you’re so averse, […] it means that you’re giving effectively a pass or immunity to people who may have broken the law. That, too, is a political decision, and I think it’s the wrong decision.”

On the Note of Democracy

Schiff emphasized the importance of the American people working together to protect democracy in the fallout of the insurrection.

“I really think it’s going to require a national movement of people to step up to preserve our democracy. This is not something that I think Congress can do alone. We’re going to try to protect those institutions, but Republicans are fighting this tooth and nail,” he asserted. “It’s difficult to get through a Senate where Mitch McConnell can filibuster things.”

“We don’t have the luxury of despair when it comes to what we’re seeing around us. We have the obligation to do what generations did before us, and that is defend our democracy,” the congressman continued. “We had to go to war in World War II to defend our democracy from the threat of fascism. You know, we’re not called upon to make those kinds of sacrifices. We see the bravery of people in Ukraine putting their lives on the line to defend their country, their sovereignty, their democracy. Thank God we’re not asked to do that.”

“So what we have to do is, by comparison, so much easier. But it does require us to step up, to be involved, to rally around local elections officials who are doing their jobs, who are facing death threats, and to protect them and to push back against efforts around the country to pass laws to make it easier for big liars to overturn future elections.” 

“We are not passengers in all of this, unable to affect the course of our country. We can, you know, grab the rudder and steer this country in the direction that we want.”

See what others are saying: (The New York Times) (The Washington Post) (CNN)

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Senate Passes Bill to Help Veterans Suffering From Burn Pit Exposure

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For Biden, who believes his son Beau may have died from brain cancer caused by burn pits, the issue is personal.


Veterans to Get Better Healthcare

The Senate voted 84-14 Thursday to pass a bill that would widely expand healthcare resources and benefits to veterans who were exposed to burn pits while deployed overseas.

Until about 2010, the Defense Department used burn pits to dispose of trash from military bases in Iraq, Afghanistan, and other locations, dumping things like plastics, rubber, chemical mixtures, and medical waste into pits and burning them with jet fuel.

Numerous studies and reports have demonstrated a link between exposure to the toxic fumes emitted by the pits and health problems such as respiratory ailments and rare cancers. The DoD has estimated that nearly 3.5 million veterans may have inhaled enough smoke to suffer from related health problems.

For years, the Department of Veterans Affairs resisted calls to recognize the link between exposure and illness, arguing it had not been scientifically proven and depriving many veterans of disability benefits and medical reimbursements.

Over the past year, however, the VA relented, awarding presumptive benefit status to veterans exposed to burn pits, but it only applied to those who were diagnosed with asthma, rhinitis, and sinusitis within 10 years of their service.

The latest bill would add 23 conditions to the list of what the VA covers, including hypertension. It also calls for investments in VA health care facilities, claims processing, and the VA workforce, while strengthening federal research on toxic exposure.

The bill will travel to the House of Representatives next, where Speaker Nancy Pelosi has pledged to push it through quickly. Then it will arrive at the White House for final approval.

An Emotional Cause for Many

Ahead of a House vote on an earlier version of the bill in March, comedian John Stewart publically slammed Congress for taking so long to act.

“They’re all going to say the same thing. ‘We want to do it. We want to support the veterans. But we want to do it the right way. We want to be responsible,’” he said. “You know what would have been nice? If they had been responsible 20 years ago and hadn’t spent trillions of dollars on overseas adventures.”

“They could have been responsible in the seventies when they banned this kind of thing in the United States,” he continued. “You want to do it here? Let’s dig a giant fucking pit, 10 acres long, and burn everything in Washington with jet fuel. And then let me know how long they want to wait before they think it’s going to cause some health problems.”

For President Biden, the issue is personal. He has said he believes burn pits may have caused the brain cancer that killed his son Beau in 2015.

Senate Majority Leader Chuck Schumer applauded the fact the long-awaited benefits could soon arrive for those impacted.

“The callousness of forcing veterans who got sick as they were fighting for us because of exposure to these toxins to have to fight for years in the VA to get the benefits they deserved — Well, that will soon be over. Praise God,” he said during a speech on Thursday.

A 2020 member survey by Iraq and Afghanistan Veterans of America found that 86% of respondents were exposed to burn pits or other toxins.

Although burn pits have largely been scaled down, the DoD has not officially banned them, and at least nine were still in operation in April 2019.

See what others are saying: (CNN) (Military Times) (Politico)

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