Hogan pans McConnell support for states to declare bankruptcy: ‘I think he will regret it’

Maryland Gov. Larry Hogan (R) criticized Senate Majority Leader Mitch McConnell (R-Ky.) on Thursday for suggesting that states can declare bankruptcy amid the coronavirus pandemic as governors push for federal funding for state and local governments. 

“Mitch McConnell probably regrets saying that,” Hogan said Thursday in an interview with Politico. 

“If he doesn’t regret it yet, I think he will regret it,” he added.

Hogan’s comments come after McConnell said this week that he supports letting states declare bankruptcy as they face mounting budget constraints sparked by the coronavirus.

McConnell’s office reiterated that stance in a document circulated by his office with a headline that said “Stopping Blue State Bailouts.”

Hogan referred to McConnell’s rhetoric on “blue state bailouts” as “complete nonsense.” 

“These are well run states, [there’s] just as many Republicans and Democrats that strongly support this,” Hogan said. 

“The last thing we need in the middle of an economic crisis is to have the states all filing bankruptcy all across America and not able to provide services to people who desperately need them and further exacerbating the problems of this economic crisis that we have,” he added. 

Congress provided $150 billion as a part of last month’s $2.2 trillion coronavirus bill for state and local governments, that are forecasting massive holes in their budgets due to the economic impact of the coronavirus. 

But a $484 billion bill passed by the Senate on Tuesday, and expected to clear the House on Thursday, did not include any new funding for state and local governments. Democrats have said it is a top priority for the next coronavirus bill, though McConnell has appeared wary.

Hogan said 55 leaders across states and territories have said they support the funding and the Trump administration has also signaled support. 

The National Governors Association sent a letter to McConnell and congressional leaders earlier this week requesting an additional $500 billion “in direct federal aid that allows for replacement of lost revenue” for states.

“I’m hopeful that we’re going to be able … to convince Sen. McConnell maybe he shouldn’t let all the states go bankrupt,” Hogan said. 

New York Gov. Andrew Cuomo (D), the vice chairman of the governors association, also slammed McConnell on Thursday over the comments about allowing states to declare bankruptcy. 

“This is one of the really dumb ideas of all time,” Cuomo said during his daily press briefing.