Newsbreak: U.S. Debt Ceiling Hits Limit, Social Security Payments at Risk as Republicans Demand Drastic Spending Cuts

On January 19, the United States reached its debt ceiling, according to a statement from the Treasury Department. To avoid financial consequences, Treasury Secretary Janet Yellen has implemented extraordinary measures. However, it is unclear whether these measures will include suspending Social Security payments.

Congress has previously raised the debt limit to avoid defaulting on the nation’s debt. However, according to a report by the CBPP on February 1, 2023, House Republicans are unwilling to support another increase unless they receive spending cuts or other concessions. If the debt limit is not raised, officials will have to choose between continuing assistance programs such as Social Security and paying off the nation’s debt.

Based on a report by The Washington Post on March 8, 2023, a House Republican payment prioritization plan would require the Biden administration to make only the most urgent federal payments if the debt limit is reached. The plan may also stipulate that the Treasury Department continue making payments on Social Security, Medicare, and veterans’ benefits, as well as military funding. However, the White House is relying on bipartisan support to raise the debt limit without conditions.

The last time the United States reached Its debt ceiling was in 2011, and it took months for the economy to recover. The Treasury found that waiting to raise the limit had a negative impact on the economy, affecting the market and people’s retirement savings.

Despite the challenges, the Biden administration remains optimistic that the debt ceiling will be raised in a timely manner. However, the situation remains fluid, and it is unclear what measures the government will take to avoid defaulting on the nation’s .