As the clock ticked closer to the Aug. 2 deadline for raising the federal debt limit, the focus shifted to dueling plans from Senate Democrats and House Republicans. Both proposals, unveiled on July 25, would raise the debt cap and cut deeply into federal spending, but the plans themselves differed sharply on the timing and structure.
Lawmakers on each side maintained they did not want to see the U.S. default, but they remained at odds and continued to blast the other's proposals. Construction industry and state officials also hope lawmakers can avert default, which economists say could drive up interest rates as well as curtail financing and demand for projects. Andy Ball, president and CEO of Webcor Builders, San Mateo, Calif., says, “If the federal government defaults and stops paying its bills, the result will not only be devastating, it will potentially have a negative impact on job growth for years to come.”