Upton Talks Possibility Of State Bailouts

money-safe
money-safe

With school districts around Michigan looking at massive budget cuts due to COVID-caused shortfalls on the state level, will the federal government take action to bail them out? Congressman Fred Upton tells WSJM News there is legislation in Washington that would allocate funds to states, counties, and local governments.

“It looks like the SMART Act, which is a bipartisan and bicameral bill, $500 billion for states, cities, and counties is beginning to get some legs,” Upton said. “I’m a cosponsor. It’s based on numbers and not politics. It would provide additional money to the state.”

Upton notes previous coronavirus relief bills did send money to states.

“Michigan has already received $3 billion from that plan. A number of us have asked our governors, ‘Where did you spend it?’ We haven’t gotten an answer yet. A lot of it, I would imagine, would go to K-8 schools. So those are some questions that need to be asked.”

The funds included in the SMART Act would be divided according to population size, infection rates, and the amount of revenue lost by each area. Upton says the act will help to avoid mass layoffs, steep tax hikes, and a breakdown of essential services. He thinks the Senate will take up the SMART Act next month.