House Majority Leader Eric Cantor ruled out any congressionally authorized bailouts for states struggling to balance their budgets under the weight of mounting entitlement costs and dwindling tax revenue.

“There will not be a federal bailout of the states,” the Virginia Republican told reporters Monday afternoon.

The new majority leader also opposes any push to grant states the right to declare bankruptcy, a move favored by many conservatives because it would give local politicians the leverage to re-work long-term compensation, retirement and health care benefits for state workers.

Mr. Cantor argued that states have all “the requisite tools” to balance their budgets every one or two years, as many states require. He cited the examples of New Jersey and his native Virginia, where Republican Gov. Bob McDonnell wants to require all state employees to contribute to their retirement accounts…