Social Security Checks Could Be Delayed Without Debt-Ceiling Deal
President Obama's stark warning that Social Security payments may not go out next month is a choice the administration has to make, but entitlement benefits could be withheld if the cash flow dries up over an impasse in Washington on raising the debt ceiling.
Obama issued the warning on Tuesday when he said Social Security payments and veterans' checks, among other payments, could be at risk if negotiators don't reach a deal to raise the debt limit above $14.3 trillion by Aug. 2. That's when the Treasury Department says the government will stop being able to borrow money.
"I cannot guarantee that those checks go out on August 3rd if we haven't resolved this issue, because there may simply not be the money in the coffers to do it," Obama said in an interview with CBS News.
The warning rippled through Washington, though some continued to question whether the administration was over-hyping the consequences of creeping too close to the cut-off date for borrowing.
Meanwhile, seniors are left wondering whether they'll get their promised retirement benefits...
Some lawmakers claim the administration could limp along at least for a short period by prioritizing payments, and in turn avoid default.
"I don't know what to believe," Boehner told Fox News in an interview after the latest White House meeting with congressional leaders Tuesday.
"The Treasury secretary is going to have options in terms of who should be paid and who shouldn't," he said. "Yes, there are some debts that have to be rolled over. But there's going to be money available on August 3, and I think it's way too early to be making some types of veiled threats like that."...MORE...LINK