Can States Declare Bankruptcy Mitch Mcconnell Floated The Option But Experts Say Current Law Doesn T Allow It
“On a basic level, states simply aren’t authorized to declare bankruptcy,” Juliet Moringiello, an associate dean of research at Pennsylvania’s Widener School of Law, told Newsweek. “Cities and counties and towns are authorized but even then there are still complicated constitutional considerations.” David Adkins, the director of the Council for State Governments, also confirmed that federal law doesn’t currently allow states to declare bankruptcy. The issue, he said, “goes to the very heart of our structure of federalism....