McConnell Favors Bankruptcy for States Over Bailouts

Senate Majority Leader Mitch McConnell said he favors allowing states struggling with high public employee pension costs amid the burdens of the pandemic response to declare bankruptcy rather than giving them a federal bailout, Bloomberg reports.

Said McConnell: “I would certainly be in favor of allowing states to use the bankruptcy route. It’s saved some cities, and there’s no good reason for it not to be available.”

McConnell may also find himself in conflict with President Trump who said yesterday that states will need assistance: “And I think most Republicans agree too, and Democrats. And that’s part of phase four.”