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U.S. Debt-Ceiling Pact Leaves States Preparing for More Cuts

States braced for possible federal aid cuts under the congressional debt-ceiling deal intended to avert a U.S. default and government shutdown.

State officials are still parsing the debt-ceiling bill for details of how it will affect them. While it eliminates the immediate threat of a crisis that could impose higher borrowing costs and shut off the flow of federal funds, officials are concerned that the cuts will place added burdens on their budgets. This is the fourth straight fiscal year in which states faced budget deficits.