The U.S. is on track to reach the debt ceiling on Jan. 19 unless Congress takes action. 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, says 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.
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However, a House Repulicans’ payment prioritization plan would call for the Biden administration to make only the most urgent federal payments if the debt limit is reached. The plan may also specify that the Treasury Department continue making payments on Social Security, Medicare and veterans benefits as well as military funding, according to two people aware of the internal discussions, as reported by The Washington Post.
“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, says 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.
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This article originally appeared on GOBankingRates.com: Government Shutdown 2023: Will Your Social Security Payments Stop if the Debt Ceiling is Reached?
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