WASHINGTON — President Barack Obama said he “cannot guarantee” that millions of Social Security beneficiaries will get their checks as scheduled next month unless he and congressional leaders agree to raise the nation’s debt limit by Aug. 2, a warning that came as both sides ratcheted up the tension over the month-long standoff over the debt.
Amid a volley of charges and countercharges over who would bear responsibility for a crisis, the Senate’s Republican leader proposed a complex new plan under which Congress would largely surrender its authority to determine the debt ceiling.
The plan, offered by Sen. Mitch McConnell, R-Ky., would force Obama to repeatedly ask for additional debt, which could be politically advantageous to the Republicans but would essentially abandon the GOP quest to use the debt ceiling as a mechanism to force deep cuts in the federal budget. The plan was widely criticized by conservatives.
The proposal appeared to be an attempt by McConnell to allow for an increase in the debt ceiling and to avoid the risk of default while putting the entire political onus on the president. Democrats’ votes in favor of expanding the nation’s debt could make for potent election-year political imagery.
Obama has rejected plans for a short-term agreement.
The back-and-forth played out in a darkening atmosphere, with the White House saying federal officials would face a “Sophie’s Choice” in deciding what to pay when federal revenue falls short of bills coming due, as is expected in the absence of an increase in borrowing authority from Congress.
Obama wants a resolution within 10 days to avoid the beginning of unpredictable reactions by financial markets to the growing uncertainty, but Republicans accuse the White House of trying to stampede them to an agreement.
Until now, administration officials have declined to specify which bills they would pay after Aug. 3 with no increase in borrowing authority.
But in an interview with “CBS Evening News,” Obama issued his most explicit warning about government benefits and said for the first time that the elderly might not be the only ones affected.
“This is not just a matter of Social Security checks,” Obama said. “These are veterans checks; these are folks on disability and their checks. There are about 70 million checks that go out every month.”
Based on cash-flow projections, the government will have enough to cover only slightly more than 55 percent of its bills in August.
Republicans have said the Treasury should prioritize its bills. But besides debt service, the biggest government bills are for Social Security checks, Medicare, weapons for the military, fuel, active-duty military personnel and unemployment benefits.
Some Republicans said Obama was using scare tactics.
“Telling seniors that they may not receive their Social Security checks is his backdoor way of trying to fulfill his desire to raise the debt limit without any conditions,” said Rep. Tim Huelskamp, R-Kan.
Much of Tuesday’s talks at the White House were focused on a continued standoff over Medicare cuts and tax increases. Republicans have outlined $350 billion in cuts to the popular senior health care program, including higher costs seniors would have to pay.
Democrats have refused to agree to such reductions without increases in federal revenues.
The impasse represents a key obstacle to reaching the $2.5 trillion in deficit reduction the GOP wants in exchange for its vote to raise the debt limit.
