With a number of states dealing with financial difficulties and budget shortfalls, Congress faces the prospect of providing “bailout” funds to states or possibly allowing governors to file for bankruptcy.
Representative Patrick McHenry (R-NC), who chairs a subcommittee of the Oversight and Government Reform Committee, said he is not convinced that another bailout is the right answer, but allows that more research is needed to better understand the situation.
My colleagues and the Republican majority “has no appetite for a bailout for states,” said the congressman.
Instead, he offered other suggestions to aid states, such as, a requirement for more transparency on state budgets and greater disclosure on practices of credit rating agencies. He also spoke out against the Treasury Department’s Home Affordable Modification Program, calling it “ineffective” and maintained that it left homeowners in a worse position than what they had been in before.
His subcommittee is responsible for oversight of the Troubled Asset Relief Program (TARP), bailouts of public and private programs, and other financial services.