A high-stakes debt ceiling standoff in Washington could have spillover effects on state spending plans that rely heavily on federal aid to fund a variety of social programs and transportation projects. Policy experts say failing to suspend or raise the debt limit could disrupt spending at the state level, particularly with regard to the recently enacted $1.2 trillion infrastructure law. “We don't have experience of a federal default,” said Jared Walczak, vice president of state projects at the Tax Foundation. "Federal default has never happened and everyone hopes and expects that it won't happen now," Walczak said. It is the National Association of State Budget Officers, not the National Association of State Budget Officials.

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