$50 billion request for states and cities

last updated 8 January 2015

President Obama has asked Congress for $50 billion to help cash-strapped states and cities stave off “the devastating impact of budget cuts” on government services. Without the money, the president warned, local governments will have to lay off “hundreds of thousands’’ of police, firefighters, and teachers.

Congressional budget hawks of both parties have demanded federal budget cuts to offset the $50 billion, as a condition of granting the aid. But the president offered no cuts, and said failure to release the aid would cause “a vicious cycle’’ of higher unemployment, depressed tax revenues, and budget shortfalls.