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Tipsheet

One Way Out

Professor Ronald Rotunda at the Chapman School of Law claims the bailout may not even be legal.
Because some governors might not accept the money, Congress added a unique provision, in subsection 1607(b): "If funds provided to any State in any division of this Act are not accepted for use by the Governor, then acceptance by the State legislature, by means of the adoption of a concurrent resolution, shall be sufficient to provide funding to such State."

If state law does not give the state legislature the right to bypass the governor, how can Congress just change that law? Where does Congress get the power to change a state constitution?

It might appear quaint to note that the U.S. Constitution does not create a central government of unlimited powers.
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Wouldn't it be great if the money couldn't be distributed because of a technicality...

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