In a stark reminder of the catastrophic consequences of not raising the debt ceiling by Aug. 2, President Obama said he cannot guarantee that retirees will receive their Social Security checks on Aug. 3 if Republicans and Democrats fail to reach a compromise. In an interview with CBS, Obama said, “I cannot guarantee that those checks go out on August 3rd if we haven’t resolved this issue. Because there may simply not be the money in the coffers to do it.” The White House and congressional Republicans are currently locked in a stalemate over the GOP’s refusal to raise revenue.
As ThinkProgress reported, the Bipartisan Policy Center has said Social Security checks would almost certainly not go out in August if the two sides fail to reach a deal. Their analysis “determined that the government likely would not have enough revenue to pay the full $23 billion payment to Social Security recipients due on Aug. 3.”