McConnell

McConnell thinks bankruptcy, not more federal money, might be best for state and local governments

McConnell’s tough words came a day after the Senate approved a $484 billion bill to help small businesses and hospitals respond to the coronavirus outbreak. The measure did not include funds for state and local governments, despite Democrats arguing they are hard hit by the disease and the corresponding economic fallout.

Instead, McConnell suggested in interviews Wednesday that Democrats are trying to get the federal government to essentially bail out state and local governments for bad decisions they made related to public pension obligations and other sources of expensive debt.

“I would certainly be in favor of allowing states to use the bankruptcy route,” McConnell told Hugh Hewitt in a radio interview. “It saves some cities. And there’s no good reason for it not to be available. My guess is their first choice would be for the federal government to borrow money from future generations to send it down to … Read More