Schumer warns debt ceiling default could cause ‘economic nightmare’

(AP Photo/J. Scott Applewhite)
Published: Jan. 26, 2023 at 3:06 AM EST
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Binghamton (WBNG) - U.S. Senate Majority Leader Chuck Schumer is warning an “economic nightmare” for Upstate New Yorkers if the U.S. defaults on its debt.

Last week, the Treasury Department announced the country has reached its debt limit, and it will take extraordinary measures to continue to pay the government’s bills and prevent the U.S. from defaulting.

Some House Republicans have said they will not support raising the country’s debt ceiling, which would allow the government to borrow more, without making cuts to government spending.

“Because of this extreme wing, we are at risk of a default by the United States government,” said Schumer. “It has never happened before in our history.”

Schumer said a debt ceiling default would risk benefits for millions of Upstate families. He said social security, medicare, retirement, SNAP benefits, and veteran care would all be at risk. He said over 1.8 million Upstate New Yorkers on Social Security, who receive $3 billion in benefits each month, would be impacted.

He claimed mortgage rates, overall interest rates and college financing costs would also increase as a result. He said Democrats and Republicans must come together as in previous years to come up with a plan.

“As we get closer and closer to the day we have to act, Upstate New York families will see this,” Schumer said. “It’s our obligation to let people know how bad this is so they can tell their Congress members, Democrat and Republican, to avoid default at all cost.”