[Rockingham]

As Pelosi's last stimulus bill revealed, the Dem plan is to have the federal government spend trillions of dollars to bail out Blue state and city budgets and pension plans. If the Dems get control of Congress and the White House, that will be at the top of their list of priorities.

Although cities can go bankrupt, American states cannot do so unless the bankruptcy code is revised to permit it. Even then, for constitutional reasons, an involuntary state bankruptcy may be prohibited. In any event, the budgets of states in bankruptcy are likely to be put under the control of an appointed financial manager.

[SauronOfMordor]

>>Although cities can go bankrupt, American states cannot do so unless the bankruptcy code is revised to permit it. <<

Although states cannot declare bankruptcy, they don’t need to. They can just repudiate their debts.

https://www.encyclopedia.com/history/dictionaries-thesauruses-pictures-and-press-releases/repudiation-state-debts