Mitch McConnell says cash-strapped states hit by coronavirus should go bankrupt, rather than receive emergency federal aid

REUTERS/Jonathan Ernst

• McConnell said he'd rather let states financially squeezed by the coronavirus declare bankruptcy instead of extend federal aid that would require further deficit spending.
• "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," he said on Hugh Hewitt's radio show.
• Experts say states are facing a severe cash-crunch as tax revenues plummet and unemployment soars, leading to a need for immediate federal aid.
• Visit Business Insider's homepage for more stories.

Senate Majority Leader Mitch McConnell said in an interview on a prominent radio show on Wednesday that economically struggling states should declare bankruptcy rather than be given a federal bailout.

"I would certainly be in favor of allowing states to use the bankruptcy route. It saves some cities," McConnell told conservative radio host Hugh Hewitt. "And there's no good reason for it not to be available."

See the rest of the story at Business Insider

NOW WATCH: How waste is dealt with on the world's largest cruise ship

See Also:

• Mitch McConnell just threw cold water on the immediate prospect of further coronavirus aid, citing 'extraordinary' national debt
• The Trump administration is seizing on the coronavirus pandemic to roll back business regulations as it pushes to reopen the economy
• An economist at UBS' $2.9 trillion wealth management arm says investors will need to adjust to these 3 new realities in the post-coronavirus world

News Source