Washington—This week, Sen. Todd Young (R-Ind.), Sen. Pat Toomey (R-Pa.), and Sen. Tom Cotton (R-Ark.) introduced legislation to prevent the federal government from issuing credit, making grants, purchasing debt, or otherwise bailing out bankrupt states. State and local governments currently have $6 trillion in unfunded pension promises, and Sen. Young's legislation would ensure that federal taxpayers will not be forced to fulfill those debts.
Heritage Action released the following statement from Executive Director Tim Chapman:
At a time when our nation is over $22 trillion dollars in debt, the federal government should not be considering federal bailouts for fiscally irresponsible state governments. While state pension funds running out of money is a serious problem, working-class Americans should not foot the bill for states that have failed to fund their pensions. States should instead adopt responsible solutions like buying out workers' pensions or holding union representatives accountable for failing pension plans. All senators should support Sen. Young's legislation.