WASHINGTON – Republicans in the Senate want to make sure the federal government does not become involved in the financial maelstrom hitting Detroit, which filed for the largest municipal bankruptcy in U.S. history last week.
They have proposed at least three “No Bailout” amendments to spending bills that the Senate is currently considering, all of which would limit the U.S. government’s ability to help cities in fiscal crisis.
Even though the amendments will likely fail in the Democrat-dominated chamber, cities and counties are alarmed by legislation they say could jeopardize funding for hundreds of local governments and are pushing back.
Senator Lindsey Graham, a Republican from South Carolina, on Thursday introduced an amendment to a financial services and general spending bill that would bar the use of federal funds to buy or guarantee a municipal asset or obligation from a locality that has defaulted or is at risk of defaulting.
To read this article in its entirety visit Yahoo! News.