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Chafee administration preparing for a possible US debt default

July 28, 2011

Jamia McDonald, deputy chief of staff for Governor Chafee, says the administration is taking steps to prepare for a possible default if Congress fails to make a debt-ceiling agreement by next Tuesday:

What we are doing is surveying our agencies to understand what that impact would look like. The governor has been in touch with his cabinet, asking them to provide them information on the type and expanse of funding that they receive for their programs and to understand what if any impact losing those funds would have.

It’s not known at this time. Until we get closer to that deadline, and if for some reason they don’t reach agreement, we would have the information in front of us to then make those kinds of decisions and assessments. 

McDonald says Governor Chafee remains hopeful that Congress will reach a solution to raise the debt ceiling. 

On a related note, 34 community groups have signed on to a letter sent today to the state’s congressional delegation by the advocacy group Ocean State Action:

“Our delegation members have been among the loudest voices for fairness in this debate,” said Kate Brock, Executive Director of Ocean State Action.  “The letter we sent today is our way of telling them that the people of Rhodes Island support them and to urge them to hold the line.  We are counting on them to keep fighting to make sure that the final deal, whether its comes tomorrow or next year or the year after that, protects the well-being of those who rely on these programs and ask the most fortunate among us to contribute their fair share to solving our nation’s long term debt problems.”

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