As Debt Deadline Looms, States Could Be Biggest Loser of Them All

Thursday, July 28, 2011

As the deadline for increasing the nation's debt ceiling inches closer, individual states are getting ready for the possibility that the Treasury will run out of cash. According to the National Association of State Budget Officers, 35 percent of state budgets rely upon federal funding to keep programs like unemployment, Medicaid, transportation projects and highways running.

Louise Story, Wall Street and finance reporter for our partner, The New York Times talks about the contingency plans states are preparing in the event of a default by the federal government.


Louise Story

Produced by:

Arwa Gunja

Comments [1]

Orin from Queens

If the debt ceiling crisis is caused by Tea Party Representatives, aren't the people who elected them expressing a desire to sacrifice to reduce national debt? Shouldn't they be first in line to lose Federal funding to their districts? Can the Federal government choose to stop payments to them first?

Jul. 28 2011 06:50 AM

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