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Social Security: You Won’t Receive Your Payment If Debt Ceiling Not Raised

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After a year of record-breaking stimulus spending, the United States has reached its borrowing cap.

If Congress does not suspend or lift the debt ceiling, it will be unable to make payments to Social Security, as well as the military.

Secretary of the Treasury Janet Yellen informed House Speaker Nancy Pelosi in a recent letter that the Treasury will run out of cash on Oct. 18 if Congress does not raise the debt ceiling by then.

There is little time to make judgments owing to the federal government’s fiscal year, which begins on October 1 and concludes on September 30.

The government’s main aim is to avoid a shutdown, while its secondary objective is to increase the debt ceiling.

The government must be funded, which entails that lawmakers meet to decide on how much to spend on future bills and plan for the budget for the upcoming year.

Disagreements lead to a government shutdown.

When the government decides not to raise the debt ceiling, it then runs the risk of default.

Government shutdowns are not very common, but the longest one happened in 2019 when President Donald Trump held office and it lasted for 35 days.

The conversation about increasing the debt ceiling is more complicated than shutting down the government, and also has more potential dangers.

The debt ceiling is the maximum amount of money that the United States government has authorized.

The U.S. Congress can raise or suspend it as they want to for as long as they want until a certain date when it will be reinstated at whatever level the debt is on that day.

Recommended Read: How Badly Government Shutdown Will Impact You?

In 2019, Congress voted to extend the debt limit. This extension expired on July 31st. The Treasury Department has not been able to issue new bonds since then.

This has created a problem with paying for all the spending that Congress has already approved.

To allow the Treasury to continue to pay receipts for purchases the government has already made, the debt ceiling would need to be elevated or suspended.

With the Treasury unable on its own to cover current spending, it has dipped into a contentious pot to keep operations going — Social Security.

Yellen wrote a piece for the Wall Street Journal in which she made it clear if the debt ceiling is not increased, “the Treasury Department’s cash balance will fall below an acceptable threshold in October, and the federal government will be unable to pay its obligations.”

The consequences of a default extend well beyond politics. Yellen warned that if the United States fails to honor its financial obligations, the average consumer would be hurt.

If the United States were to default on its debt, it would be bad. If we made this choice, our economy would be worse and borrowing would cost more.

It would also make America a more expensive place to live because of higher borrowing costs. That means things like mortgage payments and credit cards will cost you more.

37 Comments
  1. Brenda says

    The government a long time ago took money from social security and never paid it back. No government paid it back. Now we are told that social security will run out in 2034. Now we are told if the debt ceiling isn’t raised we won’t get our money. That money was paid by people working. We are the people. Government get your heads out of your ass and do what’s right. People are doing out enough.

    1. Sandra says

      Amen to that hun,and your right it’s in called for ,really govery,I thought was to pull together for the people and the government people in the Washington That’s in office so please don’t mess us all up

    2. Sam says

      This article is a lie. Yellen is liieing. Raising the debt ceiling has no relation to you getting your social security check The money is already in funds in the budget. Some goes for veterans benefits. Yellen is playing a game with the uningormed.

    3. Barbara says

      I think the American people should get their heads out of the sand and fire every member of government to include the president. They are supposed to work for us, right? So far all they have done is foolishly throw our money away taking care of everything and everyone except the people that they are supposed to take care of.

    4. Donna Burns says

      I totally agree with everything you said and I couldn’t have said it better myself!!!

    5. Mary Helms says

      Why should social security run out we paid all this in a lot of people died and didn’t collect my dad didn’t my son didn’t this should have been drawn interest all these years their legals did not pay anything they do not deserve anything this is the people that has paid in all these years. Is the government borrowed this money then the government should pay it back we should not have to do without we’re doing without enough as it is we don’t draw enough to live on that when we worked the salary what was it that high so we didn’t make much so that’s not our fault. Paid it in and we deserve to get it back

  2. Carolyn says

    Social Security is not part of the budget it is a Federal Trust Fund

    1. David D Houn Sr says

      More people need to know this

  3. Claudia Gunter says

    If the Government keeps taking money from social security and not repaying it Maybe “We” (the people) should sue the federal government for fraud. Borrowing monies paid into that account should not be touched for any reason other than a real country emergency. Congress needs to Stop the endless Pet Projects an get their heads out if their asses. My opinion is smaller government and term limits for All Congress, Senators , Representatives and Federal officials. Enough of getting Rich on the people’s dime or dollar.

    1. Barbara says

      You are so very right!

  4. Nikki Spears says

    This is what hurt’s me, I am a single mom,my car has been in the dealership for 6months the dealership can not get the computer piece to fix.I was laid off last year now I can’t get a job because I have no car, can’t afford another car .No job no car . governor Justice gives away for covid vaccine well I did my. Vaccine I don’t know how to sign up for a chance to win.. so what am I supposed to do now..so if I don’t get my SSI what would I do for my son.

  5. Julieanna says

    Well if the government would quite giving out so much money like it grows on trees like the unemployment when everyone started to live off of it and don’t want to go back to work worked I heard that sad when you start using the system to live off of it and can work there’s lots of jobs out there for people to go to work And that’s so sad that the government can take away the social security that the elderly and hard working people that put into social security to Secure there life’s income when they would not be able to work anymore what are they suppose to do when that is taking away from them my opinion to me it looks like the government doesn’t care about the and take care of the people we the of the World are suppose to look up at our government and government is suppose to take care of the people what good is the government for if they don’t take care of the of this world what is going to happen to to the Elderl when all they have is social security they live on what’s the government thinking about does he even care about the people that what I think any ways about the whole government thing

    1. Daisy manning says

      This so true.

    2. Sharon Hamilton says

      Im on social security. I fully believe that should this happen, not one senator, congressman, or even the president, should not receive a paycheck until military and social security is pd.
      Military, when allowed, protects us. Social security was paid into. Cap that money, so any SPENDING NEVER AFFECTS THE MILITARY OR SOCIAL SECURITY.. This is not only an out rage but a failure to look after its OWN ppl. Vs sending out shots to other countries. They have t have debt to maderna, j and j and Pfizer. This is unacceptable that our gov. Would allow this this to even be spoken of. I hope this administration is very. Uncaring. That is so wrong.

  6. Evelyn says

    The same terrorist tactics used everyear first give hope for an increase then scare the old folks and loyal soldier with the threat of cutting off their check

  7. Bruce Jenkins says

    Stop giving money to every body who holds their brand out take that stupid raise congress gave them self stop spending on bullshit the demacrats want to throw buckets of money on

    1. Youlanda says

      REALITY IS THIS NOT A DEMOCRAT OR A REPUBLICAN THING! THIS IS A PEOPLE THING AND ONCE EVERYONE GETS THAT THROUGH THEIR HEAD. THEN YOU WILL UNDERSTAND THIS EFFECT EVERYONE.

  8. Barbara says

    The government has mismanaged the money we all paid in to our SS. Now they want to spend trillions more that the country doesn’t have. What are we supposed to do?
    I am glad they don’t manage my money!

  9. Cynthia Jones says

    Are you serious? This is some BS for real. Social Security is monies that we the people put into the system while working & people are living off of it. Well I guess we will be moving in & living with their Asses if they don’t pass it. TO GOD BE THE GLORY

  10. Terri Hayden says

    This is so simple I have no idea why it hasn’t been done nor will it ever be done.
    My husband & I were in the welfare office applying for food stamps both of us were in our late 50s he got disability me I got hurt so I had no money.
    There were 2 ladies next to us 1 lady said just LIE they don’t check on nothing. We got turned down but she didn’t.
    They use other people’s kid’s SS numbers so they get more money & food stamps, some people on welfare don’t even have kids yet they get their money every month
    They all have designer bags, 800 dollar hair styles and drive new cars.
    I had a couple worker ask me if I wanted a friends kid SS number so I can get more money on my tax return.
    The government would have so much money if they checked out people on welfare

    1. Darrin says

      I don’t know what DSS that is giving out enough to buy Designer bags but it sure isn’t where I live. I am on permate disability from a work related injury and I get less then $1000 amonth a I make to much to get more. Those people you are seeing with those $800 bags are probably drug dealers…

  11. Bobbi Lee says

    I think that it is about time for every government official to take a paycut.

  12. Shad Steadman says

    Here’s an idea stop paying the millionaires that are in congress that are supposed to be looking out for us the people and stop working on themselves getting richer. They already have enough money the could go without an annual salary if they truly cared about this country.

  13. Sharon Hamilton says

    If this is what we have to look FWD to? We need to run this country.
    In 2019 we were not even close to unknowing what was gonna happen. At least we knew.

  14. Dee Willis says

    If the government would stop using social security to bail out other debts and give to illegals social security and the military would not be in the shape their are in right now.

  15. Darrin says

    They just got a pay increase… 😂

  16. Sara Davidson says

    I believe that social security and senior’s should get 1,400 or 1,600 for everyone who is on disability due to covid 19 thank you.

  17. Lou says

    I bet the government has funds to give to illegal immigrants. But to heck with the American people who put their money into SS to begin with. We the People need to take our country back. Fire all these airheads

  18. Lois Putas says

    Fire all of them. They work for us!

  19. Vickie Sours says

    It is time that we come together and get rid of our congressmen and women
    They do not struggle we do so it has been so long since they went back to their roots. Now is the time people

  20. Torree says

    I will have my lights, water, heat/air insurance;(, car and burial) at risk. All be lost after 10 days past due. I have nothing else. I don’t want to talk rent.

  21. Maria says

    God help us all🙏

  22. Marla Bridwell says

    This is the government’s way of continuing their strategy to control everyone in the U.S. if something is not done soon to stop the ones who are doing this, I truly believe all that is happening now will bring about the end of the United States as we have known it in the past. There will come a time when we will all be under communist rule

  23. Bean says

    It would seem that before social security would be denied to those who depend on it, These government officials should expect to not be paid until the situation is settled.

  24. Yolanda says

    If the government would stop sending money to other countries. Learn to take care of their own first then things would be much better for America. Social security should never be denied and if anything they should receive much need request. They are cutting their food stamps and all. So, if they are doing that they need to give everyone on Social security nothing less than $2500 month. Because rent is 1200 a month

  25. Kimberly Aldridge says

    Better. Not. Or. You. Will. Owe. Me. Big. Time. For. This. Mistake

  26. Kimberly Aldridge says

    Better. Not. Or. Owe. Me. Big. Time

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