Social Security Checks in 2023 May Be Discontinued If Debt Ceiling Not Resolved, Experts Warn

Experts warn that Social Security checks in 2023 may be discontinued if the U.S. Congress fails to resolve the debt ceiling by June. Treasury Secretary Janet Yellen states that senior and disabled citizens who depend on the funds may be heavily affected.

Janet Yellen, the U.S. Treasury Secretary, warned that if the country defaults on its loans, it could cause crisis in the Social Security checks in 2023. This means that senior citizens and disabled individuals who benefit from the agency will be heavily affected.

According to Cariaga, in addition, other experts added that that if the country fails to increase its debt ceiling by June, the Social Security checks in 2023 may be delayed or discontinued. Reportedly, investors are becoming more reluctant to hold government debt that will mature in June.

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What Happens If Debt Ceiling is Not Resolved

According to Severi, the the U.S. had never defaulted on loans before, therefore, it is not certain what would happen if the debt ceiling is not resolved. Nonetheless, experts on policy claimed that it may result in a government shutdown or default.

Reports say if a government shutdown happens, part of the Social Security Administration (SSA) may be terminated. Fortunately, the Social Security checks in 2023 may be automated and still be distributed. However, if a default happens, there would completely be no funds left to finance the Social Security checks in 2023. This means that the payments will downright be discontinued.

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