Sen. Toomey: 'Red Light' May Be 'Flashing' Over COVID Relief Spending

While other coronavirus relief bills passed quickly and unanimously, the current legislation will take another "week or two" because Republicans are divided on its provisions, and because there may be a "red light flashing" concerning how much money is being spent, Sen. Pat Toomey said Tuesday. 

"Some look and see price signals that are starting to get a little bit worrisome sustained economy, with gold setting records, silver on a rocketship," the Pennsylvania Republican said on CNBC's "Squawk Box." "At what point do we say there's a red light flashing there?"

The current Senate GOP proposal calls for $1 trillion in spending, but House Speaker Nancy Pelosi will be adamant about sending even more money to state governments, said Toomey. 

"We've sent $486 billion already," he said of money going to states. "The idea that we're going to pile on after the trillion that's already on the table another, another what, trillion? That's going to be really, really problematic." 

States, he added, have taxing ability and power to borrow funds, but Pelosi will insist on more money. 

"Fortunately, we do have the liability protection," said Toomey. "That's absolutely essential. That's in our bill, but I'm really worried about where this ends up."

In addition, Toomey said he's concerned about the impact of continued direct payments to Americans, as he feels they can disrupt reopening the economy.

"The vast majority of direct payments went to people who didn't have any lost income," said Toomey. "We're going to do that again except on a bigger scale. There's a lot of this that's worrisome."

There is also a big debate about supporting cities, and Toomey said the coronavirus marked the "final straw" in many places that were "very badly managed for an extended period of time."

"We also sent a lot of money to states that is finding its way to municipalities," said Toomey. "In my state of Pennsylvania, there's over $1 billion of the CARES Act that has been set aside, in reserve, that's not yet been allocated."

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