July 27, 2011 / 9:25 PM / 9 years ago

US to lay out post Aug 2 plan soon if no debt deal

WASHINGTON, July 27 (Reuters) - The U.S. Treasury will lay out a plan in the next few days about how the government will operate if it appears that Congress might not be able to meet an Aug. 2 deadline to raise the U.S. debt ceiling.

“As part of due diligence and responsible governance, they (Treasury) have to make those assessments, and at some point closer to Aug. 2 there would be a discussion of that,” said White House press secretary Jay Carney.

Republican and Democratic lawmakers are rushing to rework competing plans to lift the $14.3 trillion debt limit and cut the deficit as time runs out ahead of Aug. 2, when the Treasury would lose its authority to borrow. [ID:nN1E76P2HJ]

Carney declined to spell out if this review would prioritize payments of U.S. debts ahead of social security checks and other government obligations.

“They are working on that, and my understanding is they will say that, if and when we get closer to Aug. 2 and cooler, saner heads have not prevailed in Congress, and we don’t yet have an agreement,” Carney told reporters. (Reporting by Alister Bull; Editing by Sandra Maler)

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