If a deal can’t be reached by June 1, families that rely on federal payments worry that their checks will stop arriving.
The looming debt ceiling crisis has left many families, especially those dependent on federal assistance, facing an anxious wait. With only weeks left before a potential default, these families are grappling with the possibility that their government benefits might be cut off. Already struggling with the challenges of high inflation and rising interest rates, they now face the added uncertainty of whether their financial support will continue.
Shannon Galloway, a Gold Star mother of five children, shared how crucial federal payments are for her family’s survival. Since her husband’s death in 2009, she has relied on government assistance to pay for daily living expenses, including the mortgage, utilities, gas, and groceries. The thought of further delays in these payments, especially if a deal isn’t reached on the debt ceiling, has Galloway deeply concerned.
The situation is becoming dire for many like Galloway, who are depending on these payments to cover basic needs. Her family was already affected in December when payments were delayed after her oldest son turned 18. The idea that a default could result in an indefinite delay of funds would, according to Galloway, be “detrimental” to her family’s well-being.
Federal programs, including military benefits and Social Security, are also at risk. The Treasury Department has stated that, without an agreement, it would face the impossible task of prioritizing payments to prevent default. On June 1, the Treasury needs to disburse around $12 billion in military benefits, followed by $25 billion in Social Security payments. If the debt ceiling is not raised, these payments could be interrupted, affecting millions.
Dave Allen, who runs a food pantry in southwest Detroit, is another example of how the crisis could ripple through communities. His food pantry relies on FEMA funding, which accounts for about a third of its budget. Without that money, Allen’s pantry, which served 717 people last month, could face severe cuts. He expressed his frustration with the situation, emphasizing that the stakes are higher than just political gridlock; for many families, it’s a matter of survival.
With the deadline fast approaching, advocates are calling on Congress and the White House to reach a deal. The failure to do so could have devastating effects on the most vulnerable Americans, leaving many unsure how they will meet their basic needs in the coming months. The uncertainty surrounding the debt ceiling crisis is creating an unbearable strain on families already facing financial difficulties.
