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

The Takeaway

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.

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