Connect with us

Hi, what are you looking for?

Finance

National Debt Ceiling Has Been Reached – Will Social Security Payments Stop?

National Debt Ceiling Has Been Reached - Will Social Security Payments Stop?
The Treasury Department stated on January 19 that the United States has reached its national debt ceiling. Special procedures have started to lessen the financial effects. But will they stop paying Social Security benefits as well? (Photo via Getty Image)

The Treasury Department stated on January 19 that the United States has reached its national debt ceiling. Special procedures have started to lessen the financial effects. But will they stop paying Social Security benefits as well?

 

Social Security: Will SS be affected by debt ceiling?

The United States of America has reached a dreaded milestone known as the debt ceiling, which can have an impact on individuals’ access to Social Security and Medicare benefits. Its immediate goal is to prevent a default on the nation’s debt, which only this past Thursday, January 19, reached its legal maximum. The debt limit, often known as the debt ceiling, is the total sum of money that the United States can borrow to pay its debts, which include Social Security and Medicare payouts. Together with military pay, tax refunds, interest on the national debt, and other payments are included here. (Photo via https://www.marca.com/)

 

The entire amount of money the United States can borrow to satisfy its legal commitments, such as Social Security and Medicare payouts, as well as military salaries, tax refunds, interest on the national debt, and other payments, is known as the debt limit or debt ceiling.

 

Read More:  Debt-Ceiling And Its Potential Effects On Social Security And Medicare.

Debt Ceiling Pushes Social Security Payments On The Line; What Happens Next?

 

Treasury Secretary Janet Yellen warned House Speaker Kevin McCarthy, R-Calif., Senate Majority Leader Chuck Schumer, D-New York, and other congressional leaders in a letter dated Jan. 13 of the potential “irreparable harm” that could befall the American economy, people’s livelihoods, and global financial stability if the issue is left unresolved.

 

Debt ceiling: 3 ways your finances could be affected

If the debate over the so-called debt ceiling carries on, millions of Americans could experience very serious financial hardships. The so-called debt ceiling refers to the maximum amount of money that the U.S. government can borrow to meet its spending obligations. (Photo via https://www.cbsnews.com/)

 

Congress has previously raised the debt ceiling to avoid this, but according to House Republicans, they won’t approve another rise until they receive spending reductions or other concessions, according to NPR. According to The New York Times, the country would be making a first-ever default on its debt, forcing officials to decide between continuing to provide help (like Social Security) and paying interest on the loan.

 

Read More: United States Might Reach Its Debt Ceiling Soon- Here’s What You Must Know

50 Percent Of States Are Pushing For Tax Reductions Or Tax Elimination.

 

If the debt ceiling is reached, the Biden administration would only be required to make the most crucial federal payments, according to the House Republicans’ payment prioritization plan. According to two persons knowledgeable with the internal negotiations, as reported by The Washington Post, the plan may also stipulate that the Treasury Department continue making payments on Social Security, Medicare, veteran’s benefits, and military spending.

 

What is the debt ceiling? Why a government default could directly affect your wallet

The country might become insolvent, or go into default, if politicians on Capitol Hill can’t agree to raise the debt ceiling. Millions of Individuals, including those who participate in the stock market and those who get government benefits like Social Security and Medicaid, would be directly impacted. (Photo via https://abc7chicago.com/)

 

Rep. Chip Roy (R-Texas), a prominent conservative who assisted in brokering the agreement, texted The Washington Post, “We committed to push a debt prioritization measure through regular order by the end of the first quarter of 2023.

In order to circumvent the House Republican leadership and raise the debt ceiling, the White House is relying on bipartisan backing. According to The Times, President Biden has stated that he will not negotiate on raising the debt ceiling and that Congress must vote to do so unconditionally.

 

Read More: Social Security Survivor Benefits: Child Of A Deceased Parent

6 Keys Social Security 2023 You Need To Know

 

According to NPR, the last time the United States surpassed its debt ceiling was in 2011, and the recovery of the economy took several months. The Treasury discovered that delaying raising the cap had a negative impact on the economy, the stock market, and even people’s retirement funds.

 

Copyright © 2022 Pro Claimers. Theme by MVP Themes, powered by The Santa Clarita Valley.