Pelosi: Funding for state, local government could come in two parts

House Speaker Nancy Pelosi said Tuesday that funding for state and local governments could come in two packages.

In a press call with reporters, Mrs. Pelosi, California Democrat, said she’s still discussing funding levels with Republican and Democratic governors, but is considering splitting up the funding in the next coronavirus aid legislation phase.

She’s considering giving $500 billion for states and a “very big figure” in additional funds for county and municipal governments. All of that would be separate from money Democrats want to funnel into Medicaid.

Funding for state and local governments was left out of the last emergency coronavirus relief package that Congress passed last week. That $484 billion stimulus deal covered small-business loan funds, resources for overly stressed hospitals and money for coronavirus testing.

Republicans have pumped the brakes on pursuing another “phase four” aid deal so quickly. They’re skeptical of giving a “bailout” to state and local governments and have suggested some limitations to be written into the laws to ensure the money is properly used.

Senate Majority Leader Mitch McConnell said Monday in a Fox News Radio interview that he thinks there will “probably” be another bill to address those concerns, but his “red line” would be including liability protections for small businesses and health care providers.

Mrs. Pelosi brushed off those concerns Tuesday, saying Republicans weren’t considering the front-line workers relying on local governments for their paychecks.

“How does that make sense?” she said. “That’s another example of the Republicans’ misplaced priorities. During this global health crisis, they’re worried about protecting the companies, Democrats are fighting to protect workers. They’re not concerns. They’re excuses. This money is desperately needed.”