15 May 2023
Military.com | By Rebecca Kheel
Billions of dollars of veterans benefits could be imperiled if the U.S. defaults on its debts, though the full extent of the fallout is uncertain because of the unprecedented nature of a default.
About $12 billion in veterans benefits are expected to be paid out June 1 -- the same day the Treasury Department has named as the earliest day a default could happen if Congress doesn't act to avoid it.
A default would likely delay those benefits, but for exactly how long would depend on the Treasury's next move after a default, experts who spoke to Military.com said.
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"There is significant uncertainty as to what would occur because we've never been there," said Rachel Snyderman, senior associate director of business and economic policy for the Bipartisan Policy Center, the Washington, D.C., think tank that estimated how much money in veterans benefits is due to be paid in June.
At issue is what's known as the debt ceiling or debt limit, which is the amount of money the Treasury can borrow in order to pay the nation's bills. The exact timing of the "X date," or the day the Treasury runs out of cash, is a moving target since it depends on how much tax revenue comes in, but Treasury Secretary Janet Yellen has warned it could happen as soon as June 1.
Pentagon officials have sounded the alarm about how a default could affect paychecks for service members.
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https://www.military.com/daily-news/2023/05/15/how-veterans-benefits-could-be-delayed-june-us-default.html
