Whitmer blasts McConnell for ‘outrageous’ state bankruptcy comment
Former Nevada attorney general says Gov. Whitmer broke the law
Michigan Gov. Whitmer cancels contracts with two Democrat firms to track coronavirus after facing criticism; reaction from Adam Laxalt, former Nevada attorney general.
Michigan Gov. Gretchen Whitmer said in an interview Sunday that Senate Majority Leader Mitch McConnell’s suggestion that states should be able to declare bankruptcy is “incredibly dangerous” and predicted that many state leaders agree with her.
McConnell made the suggestion during a radio interview last week with Hugh Hewitt. He was talking about the coronavirus and the financial hardships of many states. Besides the coronavirus outbreak, McConnell said their burden is also due to ballooning pension obligations.
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“I would certainly be in favor of allowing states to use the bankruptcy route. It saves some cities,” he said. “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.”
Whitmer, a Democrat, told ABC’s “This Week” that McConnell is wrong and both Republican governors and Democrats agree with her.
“It’s because of this global pandemic that we are all having to make tough decisions. We need the federal government to have our backs,” she said.
McConnell was referring to the recent bailouts passed by congress. The Washington Post reported that states and localities could be on the next round of funding.
His comments were not the first time allowing states to declare bankruptcy has been discussed. In the wake of the 2008 financial crisis, some advocated allowing hurting states to reorganize in bankruptcy. But Republicans at the time squashed the idea, even as they also panned the possibility of the federal government bailing states out.
Governors have been calling for federal help for over a week. Maryland Republican Gov. Larry Hogan, the chairman of the National Governors Association, issued a statement on April 11 pleading with Congress to appropriate $500 billion for state governments as they deal with the economic and fiscal consequences of the coronavirus pandemic.
Fox News’ Tyler Olson contributed to this report
