The focus in Washington, DC of late has been on the budget showdown between Republicans and Democrats. With just weeks before Congress has to make a decision on whether to raise the country’s debt ceiling, many have been speculating what the worst case scenario means for people who depend on federal money. Disability beneficiaries, retirees, military pay, these are all examples of people who may feel the impact of the budget and deficit crisis.
President Obama recently remarked that he was not sure whether checks could go out on August 3rd if there has not been any progress. He said, “There may simply not be money in the coffers to do it.” In August, Treasury officials expect Social Security payments (including both retirement and disability benefits) to be around $49 billion. Other bills include salaries for military service members ($3 billion), salaries and benefits for federal employees ($14 billion) and unemployment benefits ($13 billion). For those interested in applying for disability benefits, a Tulsa Social Security disability lawyer can provide assistance.
If members of Congress do not raise the debt limit, the government will have to shut down many services, as it will have no choice but to cut costs in order to pay bills. The cuts would have to total around $1.5 trillion. Even if the two sides do not reach an agreement, Social Security payments would most likely still go out in August. There is enough money coming in from revenue to cover those expenses. If the impasse were to continue later than August, however, President Obama’s warning may ring true.
Troutman & Troutman, P.C. – Tulsa Social Security disability attorneys