debt ceiling social security

Debt Deal Protects Social Security for Now

by Staff | August 2nd, 2011

The last-minute debt ceiling deal agreed upon by the House on Sunday, July 31, won’t affect Social Security. CNN reports that the deal won’t touch the program, despite spending cuts of more than $900 billion over the next decade.

“What happens after that would remain to be seen,” reports CNN. “A committee of Republicans and Democrats would be tasked with finding another $1.5 trillion in savings, and changes to Social Security could be part of the deal. If the committee fails to reach agreement, however, automatic cuts kick in and Social Security would be exempt.”

As it stands, the agreement calls for as much as $2.4 trillion in savings in the next 10 years and raises the debt ceiling until the end of 2010. It also calls for the establishment of a committee that will research the national debt and suggest long-term fiscal reforms.

Read more.

Do you think Social Security should have been included in this round of budget cuts? Do you think it would be better to deal with Social Security issues now rather than later?

If you need help with your Social Security Disability benefits, contact the Social Security Disability lawyers at Fleschner, Stark, Tanoos & Newlin.

Debt-Ceiling Delay May Soon Hault Social Security and Disability Payments

by Staff | June 29th, 2011

A new analysis released Tuesday asserts that if the U.S. government doesn’t come to an agreement about whether or not to raise the federal debt ceiling it could affect Social Security and Disability checks as soon as August 3.

The Bipartisan Policy Center found that, if the debt limit is not raised, the government would be unable to pay as much as 44 percent of its bills during the month of August. This might mean that the Treasury would not have the resources to make the $23 billion in Social Security payments due to go out August 3.

If not allowed extra funds to work with, the U.S. Treasury would have to prioritize the following bills: interest on debt, Medicare, Medicaid, Social Security, unemployment insurance, defense contracts, veterans’ benefits, IRS refunds, military active duty pay, federal salaries and benefits, special education programs, Pell Grants for college students, food and rent payments for the poor, and the funding of the country’s Justice, Labor, and Commerce departments.

“Based on publicly available data, we have estimated daily cash flows through the end of August 2011,” said BPC Visiting Scholar Jay Powell, a former Under Secretary of the Treasury for Finance under President George H. W. Bush. “Our analysis shows that the government will be unable to pay all of its bills on August 3 or sometime soon thereafter.”

Read more.

Do you think the government will raise the debt ceiling in time to fulfill its social obligations?

If you need help with your Social Security Disability benefits, contact the Social Security Disability lawyers at Fleschner, Stark, Tanoos & Newlin.