So the big question of the day is, if a debt deal isn’t reached and the government defaults, what will happen to transportation funding?
According to an analysis by the Bipartisan Policy Commission (BPC) there would be barely enough funding to pay interest, Social Security, Medicare and Medicaid, defense, and unemployment benefits. But another scenario suggests a “safety net” analysis swaps defense spending for some social program spending.
Either way, transportation funding would be at the bottom of the list, and payments to states and local agencies presumably would stop. Or would they? Larry Ehl at Transportation Issues Daily talked to some transportation heavy weights on what they think will happen.