(The Center Square) – How an incoming Trump administration with a Republican controlled Congress will impact the finances of Democrat-run cities and states is still unclear.
Speaking with news outlet The Free Press, venture capitalist Peter Thiel said a big issue coming to a head is the looming bankruptcy of blue states and cities like Illinois and Chicago. He said Trump will have power to not approve new spending for such states.
“That’s where I think you’re going to be able to force radical change,” Thiel said during the two-hour long interview with Bari Weiss earlier this month. “Radical change in California, in New York, in Illinois where these places have to reform themselves or go bankrupt.”
Just after the election, Illinois Gov. J.B. Pritzker said it would be illegal if the incoming Trump administration withholds certain federal funds from Democrat-run states like Illinois. He wasn’t worried about transportation funding either.
“We’ve been very fortunate because we are at the center of the supply chain for the nation and so we’ve received a lot of support,” Pritzker said.
If Trump acts brash and attempts to withhold federal funds he said Illinois is owed, Pritzker said it won’t look good politically.
“So I feel reasonably OK about our ability to withstand anything that the Trump administration brings to us, but I can’t predict the future,” Pritzker said.
Before the pandemic, Illinois Democratic leaders asked Congress for $40 billion. During the COVID pandemic, Illinois received $33.3 billion, according to PandemicOversight.gov. Those dollars are no longer available.
Republican state Rep. Blaine Wilhour, R-Beecher City, said Illinois has been punished by bad policies from Democrats for years, and federal funds being withheld may spur change.
“What we do in Springfield constantly is we prop up unsustainable systems, OK, and that’s why we’re in the situation that we’re in,” Wilhour said at a news conference on Thursday. “So something is going to have to be a catalyst for change.”
For years, Republicans have argued for lower taxes, fewer regulations and a more business-friendly environment in Illinois. They also want the state’s migrant-sanctuary status reversed.
