Treasury Crafts a Plan: Who Gets Paid, Who Doesn't

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BY DAMIAN PALETTA

The Treasury Department will detail how it will handle the government's 100 million monthly payments if Congress doesn't raise the federal debt ceiling, pulling back the curtain on a closely held plan that could have dramatic consequences for the economy, the U.S. credit rating and America's political standing.

The Obama administration hopes such decisions—who gets paid and who doesn't—can be avoided if a deal to raise the borrowing limit by Aug. 2 is reached, but time is running out. White House officials still haven't decided when to release the plan and could reverse course if there is progress in the ...

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