Texas Sen. Ted Cruz
Rafael (Ted) Edward CruzParler's post-election popularity sparks misinformation concerns Trump told advisers he could announce 2024 bid shortly after certification of Biden win: report Trump, Pence, Haley top GOP 2024 betting odds at Bovada MORE (R) said he is weary of massive aid for state governments in the next coronavirus stimulus bill if it serves as a bailout for poor financial decisions governors have made before the crisis.
“I don’t see any reason why the people of Texas should have to pay higher taxes to bail out states that have been irresponsible,” Cruz said on CNBC’s “Squawk Box” Wednesday. “If we’re focused on dealing with the coronavirus crisis that’s fine, but it shouldn’t be an excuse to bail out states for fiscal irresponsibility and fiscally reckless policies.”
"Illinois unfunded pension liability is $241B and that was caused by politicians who were just buying boats," says @tedcruz. "It shouldn't be an excuse to bailout states for irresponsibility and fiscally reckless policies that long preceded the coronavirus pandemic. pic.twitter.com/tj9xCT3JwA
— Squawk Box (@SquawkCNBC) May 6, 2020
During the interview, Cruz specifically named the $241 billion pension debt in Illinois, which is the highest in the nation.
Congress provided $150 billion to state and local governments in the CARES Act passed in late March, and Democrats in the House are seeking as much as $1 trillion to help state and local governments in the next stimulus bill.
Cruz's comments echo other Republican lawmakers who believe providing substantial aid would act as a bailout for state budget decisions that predate the pandemic. Senate Majority Leader Mitch McConnell
Addison (Mitch) Mitchell McConnellRepublicans seek to batter Warnock ahead of Georgia runoff Haspel not in attendance at latest Trump intelligence briefing: reports Overnight Defense: Another Defense official resigns | Pentagon chief says military 'remains strong' despite purge | Top contender for Biden DOD secretary would be historic pick MORE (R-Ky.) made remarks last month suggesting that cash-strapped states should be allowed to declare bankruptcy, which prompted blowback from state governors across the country.
The senator also said he told the mayor of Houston that he would press for “greater flexibility” in the money that is allocated from Congress.
"There is a reasonable case to be made for greater flexibility for the money we have already sent to the states and local governments,” Cruz said.
"There is a reasonable case to be made for greater flexibility for the money we have already sent to the states and local governments," says @tedcruz on #coronavirus relief funding. "One of challenges--it's not like there is a magic money tree in Washington." pic.twitter.com/fMjqxxrXm1
— Squawk Box (@SquawkCNBC) May 6, 2020
Speaker Nancy Pelosi
Nancy PelosiHere are the 17 GOP women newly elected to the House this year Biden could lose Georgia Senate races all by himself House adjusts format for dinner with new members after criticism MORE (D-Calif.) and House Democrats are expected to unveil a nearly $2 trillion stimulus package, even as McConnell has indicated that the Senate is pressing "pause" on emergency aid.
