Monday on FNC’s “Fox & Friends,” Sen. Tom Cotton (R-AR) applauded his colleagues Senate Majority Leader Mitch McConnell (R-KY) and Sen. Pat Toomey (R-PA) for resisting overtures from congressional Democrats to make it possible for the federal government to bail out beleaguered state and local governments around the country.
“Pat Toomey was a real champion for not only Senate Republicans but the American taxpayer this weekend,” he said. “So the Democrats wanted to use Federal Reserve lending programs as a backdoor bailout for cities and states that have mismanaged their finances for decades. In March, with the CARES Act, we gave the Federal Reserve limited and temporary authority to help provide liquidity into the lending markets. That succeeded.”
“The economy did not collapse in March and April, as many people feared,” Cotton continued. “We wanted to revoke that authority so Joe Biden and the Democrats can’t use it as a backdoor bailout for cities like New York City or Chicago or states like Illinois by providing ultra low-interest loans to those cities and states. We stopped them from bailing out the cities and the states through the front door, and this weekend, thanks to Senator Toomey and Senator McConnell, we stopped them from doing it through the backdoor of the Federal Reserve lending programs.”
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