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States Will Be Forced To Cut Tens Of Billions Of Dollars If The Debt Ceiling Isn’t Raised

According to the Center for American Progress’ Michael Linden and Jordan Eizenga, states could lose anywhere from $36 billion to $56 billion if the debt ceiling isn’t raised, due to the federal government being forced to cut back on state aid. “Each year the federal government funds hundreds of billions of dollars in state services,” they noted. “In fact, state governments rely on the federal government for between 25 percent and 50 percent of their revenue. These services will find themselves on the chopping block if the debt ceiling is not raised.” Massachusetts Gov. Deval Patrick (D-MA) has warned that “state governments are still reeling from the recession and can ill afford to bear the brunt of such a preventable crisis.”