Economy
8:30 am
Thu July 28, 2011

State leaders prepare for possible loss of federal funds

Providence, RI – Governor Lincoln Chafee is reviewing the state's options should Congress fail to reach a deal and raise the nation's debt limit. Without raising the debt ceiling, Rhode Island could see some of its federal funding disappear, affecting programs like food stamps and Medicaid. Chafee says Congress must reach an agreement, as Rhode Island, along with the rest of the nation, cannot afford anything that would impede its economic recovery.

State Budget Officer Thomas Mullaney says the state may have enough money to temporarily cover a loss of federal funds if Congress fails to raise the debt ceiling by next week's deadline. Mullaney says state agencies are currently reviewing what funding the state might lose if an agreement is not reached.

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