This week Senators Lindsay Graham (R-SC) and John Cornyn (R-TX) introduced an amendment that would have significant negative impacts to cities around the country, but was targeted at Detroit. The amendment, which is attached, was offered in the Senate Appropriations committee and would have prohibited federal funding to any local government that was in default OR at risk of default, which was not defined. The League has partnered with the National League of Cities to send a letter to the Senate opposing these efforts. The letter is also attached. This proposal is an inflexible and irrational way of attacking communities which are seeking lawful measures to handle fiscal distress. While the amendment was defeated in the Senate Thursday – it was along party lines, 16-14, so it will most certainly rear it’s head again. The League has been in direct communication with the DC staff of both Senators Levin and Stabenow on this issue, who have both spoken out in opposition to the concept.

Revised Graham – BAILOUT

Letter from MML and NLC to the Senate re Appropriations