[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 268 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
S. RES. 268

 Expressing the sense of the Senate that the Federal Government should 
                        not bail out any State.


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                   IN THE SENATE OF THE UNITED STATES

                             June 27, 2019

 Mr. Cotton submitted the following resolution; which was referred to 
                        the Committee on Finance

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                               RESOLUTION


 
 Expressing the sense of the Senate that the Federal Government should 
                        not bail out any State.

Whereas every State in the United States is a sovereign entity with a 
        constitution and the authority to issue sovereign debt;
Whereas the legislature of every State in the United States has the authority to 
        reduce spending or raise taxes to pay the obligations owed by the State;
Whereas officials in every State in the United States have the legal obligation 
        to fully disclose the financial condition of the State to investors who 
        purchase the debt of the State;
Whereas Congress has rejected prior requests from creditors of a State for 
        payment of the defaulted debt of a State; and
Whereas, during the financial crisis in 1842, the Senate requested that the 
        Secretary of the Treasury report to the Senate with respect to any 
        negotiations with any creditor of a State relating to assuming or 
        guaranteeing any debt of the State, to ensure that promises of support 
        by the Federal Government were not proffered: Now, therefore, be it
    Resolved, That it is the sense of the Senate that--
            (1) the Federal Government should take no action to redeem, 
        assume, or guarantee any debt, including pension obligations, 
        of a State; and
            (2) the Secretary of the Treasury should report to Congress 
        any negotiations to engage in actions that would result in an 
        outlay of Federal funds on behalf of creditors of a State.
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