June 27, 2019 - Issue: Vol. 165, No. 109 — Daily Edition116th Congress (2019 - 2020) - 1st Session

[Page S4636]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  SENATE RESOLUTION 268--EXPRESSING THE SENSE OF THE SENATE THAT THE 
            FEDERAL GOVERNMENT SHOULD NOT BAIL OUT ANY STATE

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

                              S. Res. 268

       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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