McConnell discusses prospects for another round of relief

In this May 19, 2020, photo, Senate Majority Leader Mitch McConnell of Ky., speaks with reporters after meeting with Senate Republicans at their weekly luncheon on Capitol Hill in Washington. Congress is at a crossroads in the Covid-19 crisis. Lawmakers are wrestling over whether to go big as House Speaker Nancy Pelosi wants for the next relief bill or hit pause as McConnell insists. (AP Photo/Patrick Semansky) (Copyright 2020 The Associated Press. All rights reserved.)

Faced with a collapsed job market, Congress needs to tend to unemployment insurance funds supporting millions thrown out of work, but surging debt means there are limits to the scope of federal aid to help heal the coronavirus -damaged economy, the Senate's top leader said Tuesday.

In his first public appearances in his home state of Kentucky since March 13 due to the pandemic, Senate Majority Leader Mitch McConnell spoke at length about the prospects of another round of coronavirus relief passing the Republican-led Senate.

“Obviously, a lot of Americans have lost their jobs, so we need to make sure we have unemployment insurance properly funded for as long as we need," McConnell said during an appearance in Lexington. “And that could well lead to yet another bill."

McConnell said another round of federal assistance to state and local governments is possible, but he stopped short of committing to it. He expressed concern about the financial plight faced by cities, counties and states but added that the mushrooming national debt is also a concern.

“We don’t know yet," the senator said. “We’re still measuring the impact of what we’ve already done, and all of that money is not yet out.”

In Kentucky, economic damage caused by the pandemic will force cutting about $457 million, or 4%, from the General Fund in the current fiscal year, plus a potential special legislative session to downsize the Road Fund. The General Fund pays for most state services.

Gov. Andy Beshear has said Kentucky has enough in its unemployment insurance trust fund until summer to meet the unprecedented demand for benefits but will eventually need a cash infusion.

The health crisis, and the economic fallout, is unfolding as McConnell seeks a seventh Senate term in this year's elections in Kentucky.