Economics

America’s Cities Fret as Stimulus Talks Collapse

  • Absent aid, states and cities warn of spending cuts, tax hikes
  • Nuveen’s Miller says delay not major concern for muni market
Photographer: Stefani Reynolds/Bloomberg
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President Donald Trump’s decision to halt coronavirus stimulus talks with Congress means America’s pandemic-stricken states and cities aren’t likely to get any financial help soon, virtually ensuring additional rounds of spending cuts, layoffs and tax increases that will deal a fresh hit to any economic recovery.

Trump on Tuesday abruptly announced on Twitter that he was calling off talks with Democrats until after the election amid a dispute over how much aid should be given to state and local governments, which saw revenue plummet this year as the pandemic shuttered large swaths of the economy.