White House warns that debt limit showdown could hurt states

The White House is warning state and local governments about severe cuts to disaster relief, Medicaid, infrastructure grants

The White House is warning state and local governments about severe cuts to disaster relief, Medicaid, infrastructure grants. school money and other programs if Congress fails to raise the U.S. debt limit.

A fact sheet for state and local officials that was obtained by The Associated Press is an attempt to ratchet up the public pressure on Senate Republican leader Mitch McConnell. President Joe Biden has insisted so far on bipartisan backing to increase the cap on debt that was almost entirely accrued before he took office, but McConnell, R-Ky., has been unmoved and has repeatedly said that Democrats must act on their own.

The Treasury Department has engaged in extraordinary measures to keep the government running after the suspended debt limit was reinstated in August at a level of $22 trillion, about $6 trillion less than current total debt load. Treasury's extraordinary measures will be exhausted by October, creating the potential for default.

The debt limit is the amount of money Congress allows the Treasury to borrow to keep the government running.