Indiana federal aid target in national debt deal

INDIANAPOLIS (AP) - Indiana won't emerge unscathed from the debt deal Congress and President Barack Obama struck at the eleventh hour.

The deal calls for $917 billion in federal cuts. That means transportation, education and other domestic spending programs are on the chopping block.

Indiana collects about $9 billion from the federal government each year. The money helps fund education, anti-terrorism programs, disaster relief and housing aid for low-income residents.

Indiana Senate Appropriations Chairman Luke Kenley says he doesn't see the state replacing those funds if they're cut.

States won't get a sense of the cuts' impact until Obama introduces his next budget. But Michael Bird of the National Conference of State Legislatures says states will have to set priorities.

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