Extraordinary measures to mitigate financial consequences have begun. (Photo: Daily Montanan)
The United States reached its debt ceiling on January 19, according to the Treasury Department on Thursday, January 19. Treasury Secretary Janet Yellen says extraordinary measures to mitigate financial consequences have begun. The public is now curious whether social security payments will stop due to these circumstances.
Previously, Congress avoided this by raising the debt limit, but House Republicans have stated that they will not support another increase unless they receive spending cuts or other concessions, according to NPR. According to The New York Times, defaulting on the debt would be a first in US history, forcing officials to choose between continuing assistance (such as Social Security) and paying interest on the nation’s debt.
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Extraordinary measures to mitigate financial consequences have begun. (Photo: AS USA)
However, a payment prioritization plan proposed by House Republicans would require the Biden administration to make only the most urgent federal payments if the debt limit is reached. In addition, the plan may also require the Treasury Department to continue making payments on Social Security, Medicare, veterans benefits, and military funding.
The White House is counting on bipartisan support to bypass Republican leadership in the House and raise the debt ceiling. Furthermore, President Biden has stated that he will not negotiate on the debt limit, and Congress must vote to raise the limit without conditions.
According to NPR, the last time the United States reached the debt ceiling was in 2011, and the economy took months to recover. The Treasury discovered that delaying raising the limit harmed the economy, affecting the market and even people’s retirement savings.
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