States Step Up Reopenings, Hoping to Limit Economic Damage

U.S. states and governments around the world are trying to revive their economies after months of shutdowns, as they take tentative steps to ease restrictions imposed to combat the spread of the coronavirus.

State governments in the U.S. estimate the collective expense of fighting the pandemic at some $45 billion, which most want the federal government to repay in full, rather than be reimbursed at the 75% rate allowed under the law, the Federal Emergency Management Agency said.

Slight declines in new cases in some states have prompted governors from New York to Ohio to reopen services—to varying extents—including restaurants, churches and schools. Virginia Beach is preparing to reopen at 50% capacity on Friday, while more restaurant seating will be permitted in Connecticut and West Virginia this week.

There are some 4.9 million confirmed infections world-wide, according to data compiled by Johns Hopkins University, and more than 323,000 deaths. In the U.S., nearly 1.53 million have been confirmed infected, and almost 92,000 have died, according to the data. Experts caution that official numbers likely understate the extent of the pandemic.

The U.S. is racing to develop a vaccine, moving quickly to fund the Biomedical Advanced Research and Development Authority, a government organization set up in 2006 to deal with biological threats. The $2 trillion coronavirus stimulus package signed by President Trump in March included $3.5 billion for Barda to support the manufacturing, production and purchase of vaccines, drugs and diagnostics for Covid-19, a sum that has outpaced similar efforts in Europe.

European pharmaceutical giants including Sanofi SA have also been working to develop a vaccine, though it isn’t clear to what extent European governments would fund those efforts. The European Union has contributed €1.4 billion ($1.53 billion) to the Coronavirus Global Response, a fund it leads, to develop treatments.