Washington, D.C. – On Friday, Congressman Francis Rooney introduced the Government Bailout Prevention Act. This bill would prohibit the use of federal tax dollars by insolvent state, territory, and local governments to bail out and pay off their obligations.
Congressman Rooney stated, “American taxpayers do not like when their money is used to bail out failing corporations or businesses and this dislike extends to state and local governments who are fiscally irresponsible. I have consistently voted against irresponsible spending and subsidies. All levels of government; federal, state, and local, must be better stewards of taxpayer money. While I continue to fight for fiscal responsibility in Congress, I believe that state and local governments should not be bailed out for their fiscal mismanagement. It is time for accountability and honesty.”
Background:
- Senators Young, Toomey, and Cotton introduced the Government Bailout Prevention Act in the Senate on July 15, 2019.
- This bill also prevents the federal government, including the Federal Reserve and U.S. Treasury, from paying or guaranteeing state and local obligations if that government entity has defaulted, filed for bankruptcy, or is at risk of bankruptcy or default.