Delay on Debt Ceiling to Cost U.S. $38 Million
The balanced budget dispute in Congress and the resulting delay in raising the national debt ceiling will cost the Social Security trust fund $38 million in interest in the next 10 days, a Treasury spokeswoman said Monday.
The Treasury dipped into the trust fund Friday for $15 billion so it could meet government obligations, spokeswoman Kim Hoggard said. That action was required because Congress had failed to increase the government’s borrowing authority to $2 trillion due to a dispute over a balanced budget rider attached to the debt bill.
Nov. 14 Deadline
Hoggard said the money borrowed from Social Security is enough to last through Nov. 14.
“We will lose roughly $38 million (in interest) between Nov. 1 and Nov. 14 (in the Social Security trust fund),” Hoggard said. “And we will need special legislation to put it back.”
Both the House and Senate versions of the balanced budget amendment appear likely to contain the legislation to make the trust funds whole again. Both houses continued to debate budget matters Monday, and congressional aides said a conference to resolve differences was probable by next week.
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