When Treasury could start missing payments on social security, vet benefits and more

With no borrowing power left to make payments of any kind, the Treasury Department would first begin to default on its promises to send out money to regular Americans, companies that do work for the government, state and local governments that get money from federal agencies.

“I think at that point markets — stock market, bond market, more broadly the foreign exchange market — will start to sell off, thinking, well, a recession is dead ahead,” he said. “The economy is already very fragile.” By the second week of June, the federal government would have blown past well over $100 billion in missed payments. Those include SNAP benefits , education programs and tax refunds, plus payments to hospitals and health care providers that see people covered by Medicare and Medicaid.

Recipients of Social Security and veterans benefits as well as military or civil service retirees who receive pensions will not receive payment on June 1 and June 2.

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