State Bankruptcy Weighed by Republicans Blocking Aid
This article is for subscribers only.
Republicans in the U.S. House of Representatives, emboldened by the majority they won in November elections, want to send a message to U.S. states grappling with soaring pension liabilities: Don’t come to us for a handout.
A broader option, being pressed by former House Speaker Newt Gingrich, a potential presidential candidate in 2012, would be to change U.S. law to allow states to file for bankruptcy, giving them more leverage to renegotiate labor contracts.