According to many politicians, including the president, failing to raise the debt ceiling by the August 2 deadline set by the United States Treasury could result in higher interest rates for many loans and perhaps an interruption in veterans’ disability payments, Social Security disability payments, and other state and federal services. However, others are confident that a historic default will not take place and that a plan will be hammered out by Tuesday.
Either way, many state senators and representatives have been attempting to calm their constituents by letting them know that they doubt that Social Security payments and veterans disability will be affected by a default as these payments are considered a high priority by the federal government. In addition, Social Security money comes from a separate fund that will be solvent for at least years to come. Still, Texas lawmakers are being flooded with calls from residents wondering whether their checks will be in the mail.
Currently, Democrats are fighting to raise the debt ceiling through a combination of higher taxes and government spending cuts, while Republicans are reluctant to raise taxes.