In a new interview Monday, Senate Majority Leader Mitch McConnell reiterated his controversial position that bankruptcy should be “an option” for struggling states. McConnell doubled down on the statement he made last week that state and local governments impacted by the coronavirus pandemic could “use the bankruptcy route” instead of Congress working across party lines to provide urgently needed federal relief — a stance that’s earned broad and bipartisan backlash and concerns it would cause a “prolonged depression.”
McConnell’s comments created yet another liability for his vulnerable incumbents. Unpopular Senator Thom Tillis of North Carolina said last week that he “aligned” with McConnell on the bankruptcy issue. Unelected Senator Martha McSally of Arizona declined to oppose McConnell’s stance, while Senators Cory Gardner and Steve Daines also refused to comment on the need for federal aid and the idea of pushing struggling states into bankruptcy.
“Instead of pledging to pass new federal aid and ensure states and communities don’t go bankrupt, Mitch McConnell is doubling down on his toxic position that bankruptcy should be an ‘option’ worth pursuing for state and local governments facing massive budget shortfalls,” said DSCC spokesperson Stewart Boss. “After repeatedly helping McConnell resist sending emergency relief funding to state and local governments, spineless Republican Senators have proven once again they can’t be counted on to stand up for their constituents.”
Senate Republicans have repeatedly “resisted” additional funding for state and local governments and helped McConnell block a Democratic proposal to provide $150 billion more for state and local government and tribal relief in the most recent coronavirus package. Right now, states are still “scrambling to head off unprecedented fiscal calamity” and waiting on Republicans in Washington to act. Governors of both parties from across the country have called on Congress to send aid to prevent them from having to shut down essential services and lay off thousands of public employees, including local law enforcement and first responders.
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