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III
116TH CONGRESS
1ST SESSION
S. RES. 268
Expressing the sense of the Senate that the Federal Government should
not bail out any State.
IN THE SENATE OF THE UNITED STATES
JUNE 27, 2019
Mr. COTTON submitted the following resolution; which was referred to the
Committee on Finance
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 enti-
ty with a constitution and the authority to issue sov-
ereign 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
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•SRES 268 IS
Whereas, during the financial crisis in 1842, the Senate re-
quested 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—
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(1) the Federal Government should take no ac-
2
tion to redeem, assume, or guarantee any debt, in-
3
cluding pension obligations, of a State; and
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(2) the Secretary of the Treasury should report
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to Congress any negotiations to engage in actions
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that would result in an outlay of Federal funds on
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behalf of creditors of a State.
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Æ
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