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White House Warns States If Debt Limit Not Raised

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“The White House is warning states that a default caused by failing to raise the federal debt limit could result in drastic cutbacks to disaster relief, Medicaid, school funding and other programs,” CNN reports.

“The memo comes as Democratic leaders are seriously considering adding a debt limit increase to the stopgap funding bill. A final decision on whether to make that move must come by Monday, when the House Rules Committee is slated to take up the short-term continuing resolution, or CR, to keep the government open past September 30.”

“If Democrats add the debt limit hike to the CR, it will set up a showdown vote days before the shutdown deadline, since Senate Republicans are vowing to block it.”

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About Political Wire

goddard-bw-snapshotTaegan Goddard is the founder of Political Wire, one of the earliest and most influential political web sites. He also runs Political Job Hunt, Electoral Vote Map and the Political Dictionary.

Goddard spent more than a decade as managing director and chief operating officer of a prominent investment firm in New York City. Previously, he was a policy adviser to a U.S. Senator and Governor.

Goddard is also co-author of You Won - Now What? (Scribner, 1998), a political management book hailed by prominent journalists and politicians from both parties. In addition, Goddard's essays on politics and public policy have appeared in dozens of newspapers across the country.

Goddard earned degrees from Vassar College and Harvard University. He lives in New York with his wife and three sons.

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