allyson burns reports from our washington, d.c. newsroom.re rising that congress may not be able to reach a deal after all. >> reporter: the stakes are so high the obama administration preparing for the possibility of default. who would get paid, who would not get paid if congress does not raise the debt ceiling by august 2nd. now president obama said in an evening news conference, social security checks and benefits for veterans are on the line. and the u.s. risks a deep economic crisis if it defaults for the first time and loses it's triple a credit rating. >> the american people may have voted for divided government but they did not vote for a dysfunctional government. >> reporter: but both sides are still bitterly divided about how to raise the debt limit. how speaker john boehner is trying to rally democrats around any deal. he is also accused president obama about wanting a blank check. >> i tell you i gave it my all. the president's demands changed. >> reporter: at this point unless there's a breakthrough we're going to continue more