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US Debt Deal Likely To Cut Billions in Calif. Health Care, Education

LOS ANGELES (CBS) — A deal to avert a catastrophic U.S. default on the nation's debt may be just about done, but the agreement will likely translate into billions of dollars of cuts here in California.

Although Congressional lawmakers agreed to slowly phase in the $917 billion in spending cuts over the next 10 years, the most painful cuts will come first.

And as KNX 1070's Jon Baird reports, California — which receives tens of billions of dollars in federal aid — will definitely feel the pain.


"I think that we could see cuts everywhere," said Jessica Levinson, a visiting professor at Loyola Law School who studies political reform and budgetary issues. "I think there will be a new normal in which it's not realistic to say, 'This sector has to remain untouched'."

Health care for lower-income residents, transportation and education sectors could all see deep cuts once the federal money is cut off.

House lawmakers on Monday voted to raise the $14.3-trillion debt ceiling by $2.1 trillion in an effort to avoid the first-ever default by the federal government.

The bill now goes before the Senate, where it is expected to garner the necessary 61 votes for passage.

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