CT, 49 Other States Need Federal Assistance: Murphy, Blumenthal

CONNECTICUT — Gov. Ned Lamont and Connecticut’s two U.S. senators are urging the U.S. Senate to take up the U.S. House-passed Heroes Act or some iteration of it in order to help the country battle the coronavirus and its economic damage.

Connecticut got around $1.4 billion in federal funds from the Cares Act to distribute, but that amount isn’t enough to combat the economic costs and damage brought from the virus, Lamont said. Schools need about a third of the money to safely open in the fall, hospitals also need a third. State and local governments also need a third each to plug deficits, non-profits need a third and a third would be needed for coronavirus testing costs.

“I can keep going but you can see the nature of the hole we are trying to balance now,” Lamont said.

All 50 states are going to be economically squeezed by lost tax revenue, he said.

Sen. Chris Murphy called on his Senate colleagues to give states the same type of economic lifeline that private airlines and small businesses got from the federal government. The Heroes Act would provide $500 billion to states and another $300 to $400 billion for municipalities.

“There is no way for Connecticut to continue its success if we are faced with a multibillion dollar deficit this year and next year,” Murphy said.

Municipalities would either need to pass massive tax increases or have large layoffs to make up for the lost revenue, Sen. Richard Blumenthal said.

The Heroes Act if passed would include $10 billion for childcare businesses across the country, Blumenthal said. Many childcare centers are at risk of closing without financial assistance.

“Childcare is more than just a good thing that we should aspire to do because we care about children… it’s an economic necessity,” he said.

The act would also include hazardous duty pay for frontline workers that would be paid for by the federal government.