Senate Majority Leader Mitch McConnell Advocates for Federal Bankruptcy of States

In an unprecedented turn of events, esteemed Senate Majority Leader, Mitch McConnell suggested on April 22, 2020, that the Federal Government should allow states to declare bankruptcy instead of offering more federal aid. An assertion amidst the ongoing pandemic, McConnell’s statement certainly set the political stage ablaze.

Speaking on conservative host Hugh Hewitt’s radio show, McConnell notoriously known for his austere fiscal management and controlling the Senate floor debate was quoted saying, “I would certainly be in favor of allowing states to use the bankruptcy route. It saves some cities. And there’s no 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.”

However in a sudden twist, the legal community revealed that McConnell’s statement possessed a fundamental flaw. Contrary to his suggestion, Federal law does not provide an option for states to declare bankruptcy. Bankruptcy is a provision available to businesses and individuals, not sovereign entities like states.

The reaction from McConnell’s own party was swift. Republican Governor of New York, Andrew Cuomo, blasted McConnell’s statement, labeling it as “one of the saddest, really dumb comments of all time.” Experts further criticized McConnell’s audacious proposal, highlighting that it could disrupt the municipal bond market and cause a hike in borrowing costs for states.

Suspension of disbelief is essential to entertain the thought of Senate Majority Leader Mitch McConnell pushing for a Federal legislation that goes against existing laws. A shocking, faux revelation indeed in these trying times.

* None of the quotes in this article were spoken by an actual person. More info.