McConnell takes flak after suggesting bankruptcy for states rather than bailouts

Senate Majority Leader Mitch McConnell (R-Ky.) drew flak Thursday from governors in both parties after suggesting that states hit hard by the coronavirus outbreak should be allowed to seek bankruptcy protections rather than be given a federal bailout.

McConnell’s comments, made during a radio interview Wednesday, came amid a renewed push from states for help from Washington to cover lost tax revenue that has been among the dire consequences of the ongoing pandemic.

“This is really one of the dumb ideas of all time,” New York Gov. Andrew M. Cuomo (D) said during a briefing in Albany in which he warned that bankruptcy declarations by multiple states would lead to “a collapse of this national economy.” Continue reading.