Reminded me, the EU has the power to limit the size of member states budget deficits. But this only enforced against economically weaker states. The US federal government has no such power.
I think China in the last 15 years has taken the opposite tack, demanding regional governments run large deficits and loaning them the money. Which works because, Chinese leadership can give two shits about the books.
As an aside, the states actually do have de facto currency issuing power as a function of their sovereignty and taxing authority. It's rarely exercised, but it has been done. For example when California failed to pass a budget a decade ago, it started paying with IOUs that it also accepted as payment for state tax liabilities[1]. They even strong-armed banks into accepting the IOUs as deposits. The total sum was nearly $3 billion. So the states can print money.
[1] https://www.sco.ca.gov/eo_news_registeredwarrants.html