States face $500B shortfalls as Congress debates aid

State and local governments face pandemic-induced revenue shortfalls that could total $500 billion, which could prompt aid from Congress or force cuts to programs and government employment for years to come.

The lack of funding comes as states face dwindling revenue streams. The shuttering of businesses means that state sales taxes are not being collected. The flood of job losses also means states are collecting less income tax as unemployment benefits rise. Several states have also postponed tax payment deadlines.