But he added that “when it comes to the questions between Detroit and its creditors, that’s really something that Detroit is going to have to work out with its creditors.”
Lew’s comments come one week after Detroit became the largest municipality in American history to declare bankruptcy.
Labor unions have pressed the administration to intervene and provide a federal bailout to help protect the pensions of city workers and retirees. The AFL-CIO on Friday called for an “immediate infusion of federal assistance.”
But GOP lawmakers have voiced strong opposition to any federal relief.
Sen. Lindsey GrahamLindsey Olin GrahamGOP senators introduce bill targeting Palestinian 'martyr payments' Bipartisan senators earmark billion to support democracies globally Democrats see Christmas goal slipping away MORE on Thursday said the public should keep a close eye” on the administration, warning against a bailout.
“The federal government is beyond broke,” said Graham. “The last thing we need is the broke bailing out the broke.