Young introduces bill to prevent government bailouts & protect taxpayers

Submitted by Office of U.S. Senator Todd Young

Young

Last Thursday, May 21, U.S. Senators Todd Young (R-Ind.) and Tom Cotton (R-Ark.) introduced the Government Bailout Prevention Act to ensure that federal dollars cannot be used to help insolvent state, territory, or local governments pay off their obligations.

Under the bill, no arm of the federal government – including the Federal Reserve System and the U.S. Treasury Department – can pay or guarantee state and local obligations if that state or local government entity has filed bankruptcy, has defaulted on its debts, or is at risk of bankruptcy or default.

“When state and local governments spend more money than they bring in or rack up dangerous levels of debt, hard-working Americans shouldn’t be forced to bail them out,” Sen. Young said. “It is unfair to expect Hoosiers to bail out fiscally irresponsible states or communities outside of Indiana. Our bill will ensure federal taxpayer dollars aren’t used to reward these bad fiscal choices.”

The Government Bailout Prevention Act has been endorsed by the National Taxpayers Union.

Click here to read the full text of the bill.