State defaults in the United States are instances of states within the United States defaulting on their debt. The last instance of such a default took place during the Great Depression, in 1933, when the state of Arkansas defaulted on its highway bonds, which had long-lasting consequences for the state.[1] Current U.S. bankruptcy law, an area governed by federal law, does not allow a state to file for bankruptcy under the Bankruptcy Code.[2] Certain politicians and scholars have argued that the law should be amended to allow states to file for bankruptcy.[2][3][4]
- ^ Davey, Monica (January 22, 2011). "The State That Went Bust". The New York Times. ISSN 0362-4331. Retrieved May 2, 2020.
- ^ a b Frum, David (April 25, 2020). "Why Mitch McConnell Wants States to Go Bankrupt". The Atlantic. Retrieved May 2, 2020.
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