Commonwealth Policy Center

Senate Majority Leader Mitch McConnell (R-Ky) suggested that states struggling to pay bills should consider filing bankruptcy. He said that “[bankruptcy] save[d] some cities. And there’s no good reason for it not to be available.” McConnell explained that he’s opposed to the government borrowing from future generations.”  But is bankruptcy really a viable option for states? McConnell’s comments resulted in backlash from both sides of the aisle. Rep. Pete King (R-N.Y.), called McConnell the “Marie Antoinette of the Senate.” Maryland Republican Gov. Larry Hogan believes “Mitch McConnell… probably regrets saying that. If he doesn’t regret it yet, I think he will regret it.” But the question to citizens is whether its acceptable for any government to manage its debts and economic crisis by declaring bankruptcy.