Veterans benefits, Social Security and Medicare payments, and SNAP could be among the first federal programs at risk if the US defaults in 10 days, a new analysis says
Ayelet Sheffey
Mon, May 22, 2023 at 1:41 PM CDT
The US could default on its debt in as soon as ten days if Congress doesn't raise the debt ceiling.
The Bipartisan Policy Center estimated which federal programs would be at risk in the days following a default.
Social Security and Medicare payments, veterans benefits, and SNAP could be among the first to go.
A new analysis illustrates which federal programs could be the first to go unpaid if Congress fails to raise the debt ceiling in a matter of days.
Last week, the think-tank Bipartisan Policy Center published an analysis on the federal programs that would be at risk in the first days and months following a default on the nation's debt. Treasury Secretary Janet Yellen warned Speaker of the House Kevin McCarthy that the US could run out of money to pay its bills as soon as June 1, but even with the severe time crunch, McCarthy and President Joe Biden have yet to reach an agreement on raising the debt ceiling before that deadline.
The US has never defaulted on its debt, so no one can say with certainty what will happen once the government can no longer afford its spending obligations. But the Bipartisan Policy Center used daily Treasury statements, which it said are "subject to significant uncertainty and variability of cash flows," to estimate which federal programs could be among the first at risk in the event of a default.
In the first ten days of June, the government could be unable to afford the following programs:
Bipartisan Policy Center analysis of federal programs impacted by potential debt default.Bipartisan Policy Center
Veterans benefits
Medicare
Medicaid
Social Security
Tax refunds
Military retirement
Federal salaries
SNAP benefits
And education programs.
Along with the daily Treasury statements, the analysis is based on historical financial data, a Congressional Budget Office analysis of spending and revenue growth, and adjustments for changes in revenue and spending due to the pandemic aftermath and inflation.
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https://www.yahoo.com/news/veterans-benefits-social-security-medicare-184111711.html