Local politicians feared U.S. default

By Perry Russom

October 16, 2013 Updated Oct 17, 2013 at 12:40 AM EDT

(WBNG Binghamton) Local leaders created a plan before the United States reached a deal to avoid a default.

Congress reached a resolution before midnight Thursday morning, passing a legislation that authorized the U.S. to borrow money to pay it's bills.

Before the agreement, Senate leaders from both sides of the aisle released a plan that would fund the government through January 15 and lift the debt limit through February 7.

This means the US Government would be back up and running and the US would be able to continue to pay its bills.

Local politicians said the ripple affect of a default would resonate through the Southern Tier if the deal didn't pass.

"It's going to affect the citizens the most because those are the people who are invested," said Binghamton Mayor Matt Ryan. "You know, a lot of people have investments in the stock market and people could see their savings, if they invested in 401ks, all of those things that are affected."

New York State Assembly Woman Donna Lupardo said it would have been "ridiculous" if the U.S. defaulted.

"When Wall Street gets a hiccup, the state of New York winds up getting pneumonia," said Lupardo. "We are very, very worried. This is highly irresponsible that we are even having this conversation. New York has made a lot of strides already to rebuild our economy."

"We don't know exactly what the impact will be on our economy, but certainly, people are going to be feeling it," said Lubardo. "We've been reading about what will happen to interest rates and we have a lot of exposure in the state of New York."

Congress voted on this new deal Wednesday night.

The Senate voted on the deal first and then, the House of Representatives.