Jeff Bingaman United States Senator from New Mexico

President Obama is working very hard to make sure the debt ceiling is raised so that Social Security checks are disbursed on time.
The president recently said that, without raising the debt ceiling, he could not guarantee that Social Security checks would go out on August 3. Without an agreement in place by August 3 to raise the debt ceiling, the nation's financial obligations would outstrip the nation's incoming revenue, and we would not be able to meet our financial obligations.

In August alone, we would face a $134 billion shortfall. The president would have to choose which financial obligations to pay, deciding between paying the interest on U.S. Treasury bonds or benefits for our seniors, paying troops or providing veterans benefits, disbursing student loans or providing loans to small businesses to make payroll, and many other difficult choices among obligations. Not paying all of our bills could hurt the United States' credit rating, just like what would happen to a person's credit rating if he paid his mortgage but not his car payment. Not paying all of our bills could be equivalent to defaulting on our debts. Picking and choosing which bills to pay is not a realistic option.

Congressional leaders and President Obama have been in intense negotiations for many weeks, seeking an agreement to raise the debt ceiling. The president has made clear that spending cuts and revenue increases should accompany a raise in the debt ceiling so we begin to tackle the nation's long-term deficit problems, and I agree. I also agree with the president that the sacrifices required to bring our budget back into balance must be shared, including asking millionaires to carry a reasonable share of this burden, especially if we have to make cuts in nearly all federal spending, including programs that help our seniors, our children, and middle class families.

I believe we must pay all our bills, especially Social Security checks owed to seniors. Many seniors depend solely on Social Security to get by and we have an obligation to fulfill our promise to them. But if we fail to repay our creditors, the U.S. government would default on its loans, which would be catastrophic for the national—and world—economy. Interest rates on consumer and business borrowing would be higher, making it more expensive for all Americans to buy a home or car, or to get a student loan, or any purchases on credit. Small businesses would also struggle to access funds needed to make payroll.

Unfortunately, negotiations over raising the debt ceiling are at an impasse, with the president and Democrats in Congress proposing trillions in cuts, along with modest increases in revenues from closing tax loopholes and modest increases in taxes on America's wealthiest taxpayers. Congressional Republicans, on the other hand, have refused to consider any new revenues, even from closing loop holes that give tax breaks for corporate jets, off-shore bank accounts, and the like.

I support raising the debt limit, while making responsible spending cuts and modest increases in revenue that would begin to decrease the national deficit and get our nation's fiscal house in order. I am closely following the discussions between President Obama and Congressional leaders and I am hopeful that the parties will reach a resolution very soon.

I will continue defending Social Security as I have in the past, and I am optimistic that New Mexico's seniors will not experience any disruptions.