We are missing a chance to bail them out in a useful way. Assuming Trump is re-elected with majorities in House and Senate, the bailout goes like this. A new State Bankruptcy law allows states to declare bankruptcy, but they revert to territorial status. The President appoints their governor and their votes don’t count in Congress.
What could be wrong with that bailout.
Some states have state constitutions that prohibit state bankruptcy. State constotutions would have to be amended. NYS recently tried to do that, but the vote for a constitutional convention was shot down when public employees turned out in droves to vote against it.