SPRINGFIELD, Mass. (WWLP) – Negotiators for President Biden and Republican House Speaker Kevin McCarthy made an agreement on government spending that would extend the debt limit. While the debt ceiling deal is still up in the air, people are concerned about what this means for them.
However, Financial Advisor Mark Teed from Raymond James says people should not worry too much about it, “It will get done. Back pay will be paid but it’s an inconvenient so try not to get too mad about it, but it will probably happen.”
The deal, that still has to go through the House and Senate, comes after some negotiations that would resolve disagreements over work requirements and spending caps. The deal would propose limits to food stamp programs and potential spending cuts on unspent funds from COVID-19 and IRS funds.
If the debt ceiling is not raised, Social Security benefits and government salaries could be put on hold. Christopher Belanger from Springfield says there is no reason for money to be delayed, “Held up… that’s not nonsense. They should be paid forward, we are the ones that make the money, we’re the ones that deal with the turmoil and the pain when the money gets spent in the wrong situations.”
According to Teed, if the deal is not addressed by its June 5th deadline set by the Treasury Department, more people will be concerned.
“This looks like all politics and nothing good for the average person, so people will be mad if there checks are delayed a day, two days, a week, two weeks,” said Teed.
Susan Jaye-Kaplan from East Longmeadow says this is a government situation and people need to get out and vote, “I feel strongly that everybody, if they paid in, they should receive the benefits but government is government and unfortunately if we don’t get out to vote, we have very little to say.”
In the meantime, financial experts are recommending that people save some extra cash in the case of an emergency where a check that goes toward groceries or medications doesn’t arrive in the mail.
