HARRISBURG, Pa. (AP) — Gov. Tom Wolf followed through on his threat to yank COVID-19 funding from a county that defied his shutdown orders, while his administration targeted bars, restaurants and large gatherings statewide Thursday in an effort to prevent a wider resurgence of the virus that officials say could jeopardize students’ return to school.

The state’s largest teachers union, meanwhile, asked Wolf to order schools to plan for online-only instruction, citing mounting concern among educators and parents about the “significant health risks” posed by sending kids back to the classroom.

“It is extremely important for Pennsylvania’s public schools to plan for the distinct possibility that further increases in COVID-19 cases will make it impossible to safely reopen Pennsylvania’s schools for in-person instruction,” wrote Rich Askey, president of the Pennsylvania State Education Association.

Wolf withheld nearly $13 million in funding from Lebanon County, where local Republican leaders voted in mid-May to lift pandemic restrictions in defiance of the Democratic governor. Wolf’s decision left Lebanon as the only Pennsylvania county to have been cut off from a $625 million pot of federal coronavirus relief money distributed by the state.

Asked about it at a news conference Thursday, Wolf blamed the county’s GOP-controlled Board of Commissioners and suggested that Lebanon residents should kick them out of office.

“Don’t come and say you want something from the state when you haven’t followed the rules. There are consequences. These are the consequences,” he said.

The region’s congressman, GOP Rep. Dan Meuser, said Wolf lacked the legal authority to withhold the money and implored him to release it, writing to the governor: “Lives and livelihoods are at stake.” The local chamber of commerce called it an “unacceptable exclusion of just one county” and said Wolf’s decision unfairly punishes small businesses, nonprofits and others.

Lebanon County Commissioner Robert Phillips, the board’s chairperson, declined to respond directly to Wolf’s comments, saying he didn’t want to “add fuel to the fire … and put that money at further risk.”

Amid the partisan fight over funding, Pennsylvania reimposed statewide restrictions Thursday on bars, restaurants, and larger indoor gatherings — now limited to 25 people, down from 250 — in response to what Wolf has called an “unsettling climb” in virus infections.

Under Wolf’s order, nightclubs are shut down, bars are closed unless they also offer dine-in meals, and bars and restaurants are limited to 25% capacity.

Critics questioned the need for statewide restrictions when only a few areas of the state have been seeing rising case numbers, and confusion reigned among some bar and restaurant owners over what exactly constitutes a “meal” — do french fries count?

Businesses impacted by the order said they’re barely hanging on.

“I don’t know what to do. Do you close your doors? Do you keep them open? It can’t keep going on like this,” said Suzie Domasky, an owner of Ferrante’s Lakeview in Westmoreland County.

Ferrante’s, which hosts weddings and other big events and was shuttered for three months in the spring because of pandemic restrictions, immediately lost another big booking — a Christmas party — in the wake of Wolf’s latest business shutdown.

“Every time the governor announces something, I lose more money by the day,” Domasky said.

Wolf has warned of increased viral spread and said the new restrictions are needed to help keep Pennsylvania’s numbers manageable, especially with schools planning to reopen for the fall. Disease modeling from PolicyLab at Children’s Hospital of Philadelphia shows infections rising sharply in Philadelphia and the suburbs in coming weeks.

According to the governor’s office, the governor did not make a decision to withhold the funding, but that Lebanon County’s decision to violate the law deemed the county ineligible for CARES funding.

In a statement, Thursday night to ABC27, Wolf’s office explained that he did not decide to withhold funding unilaterally. In a statement, spokeswoman Lyndsay Kensinger said:

Unfortunately, Lebanon County leadership put its business owners and residents at risk when it violated the law earlier this year by unilaterally moving the county from red to yellow in defiance of the governor’s orders deeming the county ineligible for CARES funding. The governor’s disaster mitigation orders have the force and effect of law pursuant to section 7301(a) of the Emergency Management Services Code, 35 Pa. C.S. § 7301(a).

The governor did not make a decision to withhold the funding. Lebanon County’s decision to violate the law deemed the county ineligible for CARES funding.

The administration will continue to fight for lives as well as livelihoods, which is why he worked with the legislature to prioritize federal stimulus dollars for a variety of uses in COVID-19 recovery efforts to support businesses in the commonwealth such as $225 million for small businesses and $50 million in hazard pay for front line workers.

In addition to federal funds, the administration remains engaged with Pennsylvania’s business community as economic recovery efforts continue. The COVID-19 Working Capital Access (CWCA) Program, administered by DCED, provided $60 million in critical working capital financing to small businesses within the commonwealth that were adversely impacted by the COVID-19 outbreak.

The Wolf Administration is committed to supporting the needs of Lebanon County businesses and residents  as we all battle this pandemic and its health and economic consequences.

Lyndsay Kensinger, Office of the Governor

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