Graham warns that Obama might try to 'bail out' Detroit

Earlier this month Detroit filed for bankruptcy, leaving thousands of public workers without pension plans.

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Graham said the federal government is broke and not in a position to bailout municipalities.

“The federal government is beyond broke,” Graham said. “The last thing we need is the broke bailing out the broke. There is no doubt Detroit has huge problems, but they are facing problems of their own making. Detroit and other municipalities facing these issues need to get their own financial houses in order.”

On Thursday, Graham tried to add an amendment in committee to an appropriations bill that would have prohibited the federal government from bailing out municipalities facing bankruptcy, such as Detroit. Graham’s amendment failed on a 14-16 vote. He said the vote sent a “disturbing signal” that some in Washington were willing to help the ailing city.