United States v. Bekins, , was a United States Supreme Court case in which the court held that the federal government's bankruptcy powers can extend to state agencies without violating federalism principles.
Significance.
Two year earlier, the court invalidated the Municipal Bankruptcy Act of 1934 in "Ashton v. Cameron County Water Improvement District No. 1", emphasizing concerns over federalism. In response, Congress passed a revised Municipal Bankruptcy Act in 1936 that emphasized the autonomy of states in the bankruptcy process. "Bekins" upheld the revised statute. "Bekins" did not explicitly overrule "Ashton"; instead, it said the statute's respect for federalism was constitutionally adequate.
In dissent, Justice McReynolds (who wrote "Ashton") said that "Ashton" ought to have applied in this case as well.