Debt Limit Deadline Extended, But Decision Looms

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Some greater-than-expected tax revenue has allowed the federal government to extend by about a month its ability to pay its bills. But Treasury Secretary Tim Geithner is warning Congress that it still needs to increase the nation's debt limit. The Treasury had predicted that the government would hit its $14.3 trillion debt limit on May 16, but new measures are expecting to keep the government going until August.

"I personally believe that every effort will be made to stop the U.S. from default on its debt obligations," Republican Sen. Mike Crapo told Citydesk. "Because if we did default, the resulting collapse of confidence in American bonds would be devastating."

Crapo said that all government services would be at risk if a solution can't be reached this summer.

"The highest priorities would be safety-net programs like Social Security, Medicare and Medicaid," said Crapo. "But clearly, there would be parts of the government that could face a shutdown, and other parts of the government that could face serious restrictions."