Cities: Give Us Money, Too
Philadelphia, Atlanta and Phoenix are asking Treasury for some of the $700 billion bailout/rescue to help them pay bills and and finance construction projects.
The three cities want Treasury to provide $50 billion to cities nationally to spend on infrastructure and loans.
“The federal government is providing support for the financial industry,” said Luke Butler, a spokesman for Philly Mayor Michael Nutter, who's behind the effort. “Cities could use some support, too.”
What chance do the cities have of getting any money?
Treasury Secretary Hank Paulson has said such requests are beyond what the bailout allows.
The cities could try this tack, though: If they stop being cities and turn themselves into bank-holding companies, like American Express did earlier this week, then they would qualify for federal funds.
It's an idea.
-- Frank Ahrens
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