McConnell sparks bipartisan backlash with state bankruptcy remarks

The Hill logoSenate Majority Leader Mitch McConnell (R-Ky.) is facing blowback from across the political spectrum after he suggested states should be able to declare bankruptcy as they face severe budget holes sparked by the coronavirus outbreak. 

The debate over providing more federal funding for state and local governments is emerging as an early lightning rod in the next coronavirus bill, with Democrats and some Republicans asking for hundreds of billions in additional assistance.

But McConnell sparked his own political firestorm when, in response to a question from radio host Hugh Hewitt, he said he supported letting states declare bankruptcy and positioned Republicans as cautious of providing them with additional federal relief.  Continue reading.

Seeking To Slash Services, McConnell Rejects ‘Blue State Bailout’

Senate Majority Leader Mitch McConnell staked out risky ground on Wednesday in an interview with right-wing radio host Hugh Hewitt with a callous dismissal of calls for Congress to support state and local governments amid the coronavirus pandemic and recession.

While many observers have argued the states will need federal support as their revenues collapse and their expenses spike, McConnell said he’s more interested in letting the governments go bankrupt.

“I would certainly be in favor of allowing states to use the bankruptcy route,” the Republican Majority Leader said. “It’s saved 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 them now so they don’t have to do that. That’s not something I’m going to be in favor of.” Continue reading.