McConnell Says He Supports Letting States File For Bankruptcy

The transcript discusses the controversial idea of allowing states to declare bankruptcy, proposed by Mitch McConnell after a coronavirus relief package was passed. The proposal faced strong opposition from leaders like New York Governor Andrew Cuomo and Maryland Governor Larry Hogan, who argued it would harm the national economy. Legally, states cannot declare bankruptcy under current laws, and significant legal changes would be required to allow it, including amendments to the federal Bankruptcy Code and state laws, as well as a Supreme Court ruling.

What was the main reason McConnell suggested the idea of states declaring bankruptcy?

• To increase state autonomy

• To address the lack of relief for state and local governments

• To support large corporations

• To reduce federal spending

Which of the following leaders was NOT mentioned as opposing the idea of state bankruptcy?

• Governor Larry Hogan

• Senator Mitch McConnell

• Governor Andrew Cuomo

• President Donald Trump

What is a potential consequence of states declaring bankruptcy, according to critics?

• Strengthened national economy

• Increased state revenue

• Improved public services

• Collapse of the national economy

What does the current federal Bankruptcy Code say about state bankruptcy?

• It allows states to declare bankruptcy

• It is unclear about state bankruptcy

• It prohibits states from declaring bankruptcy

• It encourages states to declare bankruptcy

What would need to happen for states to be able to declare bankruptcy legally?

• States would need to pass new laws independently

• The Supreme Court would need to rule against the Constitution

• The President would need to issue an executive order

• Congress would need to amend the federal Bankruptcy Code