Will Social Security Payments Stop Now That the Debt Ceiling Has Been Reached?
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- Janet YellenEconomist
The U.S. reached its debt ceiling on Jan. 19, the Treasury Department announced on the same day. Treasury Secretary Janet Yellen said extraordinary measures have begun to mitigate financial repercussions. But will those measures include pausing Social Security payments?
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In the past, Congress has avoided this by raising the debt limit, but House Republicans say they will not support another increase unless they get spending cuts or other concessions, NPR reported. Defaulting on the debt would be a first in U.S. history, per The New York Times, and it would force officials to choose between continuing assistance (like Social Security) and paying interest on the nation’s debt.
However, a House Republicans’ payment prioritization plan would call for the Biden administration to make only the most urgent federal payments in this scenario. Both Senate Minority Leader Mitch McConnell (R-Ky.) and Speaker of the House Kevin McCarthy (R-Calif.) have signaled that they are firmly against any cuts to Medicare or Social Security, despite wanting discussions with President Joe Biden over the debt ceiling.
“We agreed to advance a debt prioritization bill through regular order by the end of the first quarter of 2023,” Rep. Chip Roy (R-Tex.), a leading conservative who helped arrange the deal, said in a text message to The Post.
The White House is relying on bipartisan support to bypass House Republican leadership and raise the debt limit. President Biden has said that he refuses to negotiate over the debt limit, The Times reported, and Congress must vote to raise the limit with no conditions.
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The last time the U.S. reached the debt ceiling was in 2011 — and it took months for the economy to recover, per NPR. The Treasury found that waiting to raise the limit took a toll on the economy, affecting the market and even people’s retirement savings.
This headline and story have been updated with additional information.
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This article originally appeared on GOBankingRates.com: Will Social Security Payments Stop Now That the Debt Ceiling Has Been Reached?