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Addressing The Next State Fiscal Crisis: Toward An Ex Ante Scheme Of Federal Assistance To States In Fiscal Distress, Omer Kimhi

BYU Law Review

Every several years, usually after a national recession, and also as a result of the C OVID 19 pandemic, states enter financial difficulties. These difficulties spur a debate, both in the political arena and in the academic literature, concerning the appropriate federal response. Some advocate for federal bailouts to rescue the distressed states, while others argue that the states need to deal with their troubles independently or with the help of state bankruptcy legislation. The Article explores the proper federal response to states’ fiscal fiscal crises.

The Article argues that the current (suggested) responses – state bankruptcy and ex-post discretionary …