How Veterans Benefits Could Be Delayed In June By A US DefaultBy: Rebecca Kheel | Military.com Billions of dollars of veterans benefits could be imperiled if the U.S. defaults on its debts, though the full extent of the fallout is uncertain because of the unprecedented nature of a default. About $12 billion in veterans benefits are expected to be paid out June 1 -- the same day the Treasury Department has named as the earliest day a default could happen if Congress doesn't act to avoid it. A default would likely delay those benefits, but for exactly how long would depend on the Treasury's next move after a default, experts who spoke to Military.com said. "There is significant uncertainty as to what would occur because we've never been there," said Rachel Snyderman, senior associate director of business and economic policy for the Bipartisan Policy Center, the Washington, D.C., think tank that estimated how much money in veterans benefits is due to be paid in June. At issue is what's known as the debt ceiling or debt limit, which is the amount of money the Treasury can borrow in order to pay the nation's bills. The exact timing of the "X date," or the day the Treasury runs out of cash, is a moving target since it depends on how much tax revenue comes in, but Treasury Secretary Janet Yellen has warned it could happen as soon as June 1. Pentagon officials have sounded the alarm about how a default could affect paychecks for service members. House Republicans are demanding spending cuts in exchange for lifting the ceiling. The White House has maintained Congress should raise the ceiling immediately to avoid even the specter of a default and that any talks about spending cuts should be handled separately, though President Joe Biden has signaled an openness to clawing back unspent COVID-19 funds as Republicans have demanded. With the deadline fast approaching, Biden and congressional leaders met at the White House last week, and staff-level talks have continued since then. A second meeting between Biden and congressional leaders had been scheduled for Friday but was canceled. Biden and House Speaker Kevin McCarthy, R-Calif., are next scheduled to meet Tuesday, Biden said Monday. McCarthy sounded a pessimistic note Monday, telling reporters he thinks the two sides are still "far apart" and that it "seems like [administration officials] want to default more than they want a deal." While the Biden administration and House Republicans have been trading accusations about whether the GOP proposal to slash overall government spending would mean cuts to the Department of Veterans Affairs, less talked about has been how veterans could be affected by a default. The Bipartisan Policy Center's estimate of payments that could be missed, including veterans benefits, is based on analysis of past Treasury reports on its daily transactions, Snyderman said. The estimate for veterans benefits covers any benefit administered by the VA, she said. In addition to the June 1 payment, another round of veterans benefits is expected to be paid on June 30. "With each additional day that impasse continues, there could be an exponential impact on what that payment delay could look like," Snyderman said. Experts see two possible scenarios for how the Treasury could try to pay U.S. bills after hitting the debt ceiling. In one scenario, the Treasury could choose to prioritize making certain payments before others, as cash comes in. In that case, how long veterans' benefits and military pay are delayed would depend on where they fall in line for priorities. Yellen has downplayed the possibility of prioritizing payments, doubting that it is technically feasible. In another scenario, the Treasury could wait until it has enough cash in hand to make a full day's worth of payments in the order in which they came due. Then, if a default happened on June 1, veterans' benefits due that day might see only a short delay, but delays for later veterans' benefits and other payments would grow the longer the impasse lasts. "We've never defaulted, and we've never breached the debt limit, and because it's so unfathomable, there's no public playbook for what to do in a situation when this happens," said Marc Goldwein, senior vice president and senior policy director for the Committee for a Responsible Federal Budget. "Some prioritization is probably possible, but it would be difficult for them to justify continuing to pay full veterans' benefits and not paying for other things," he added. "It's possible they would do that. Veterans are very popular. But I think we should assume that at least payments will be delayed." A lengthy default could equate to up to 30% in cuts to non-interest government spending, Goldwein said. In addition to potentially hitting veterans' benefits, about $12 billion in military and civilian retirement pay that is expected on June 1 and about $4 billion in military salaries that is scheduled for June 15 could be disrupted by a default, according to the Bipartisan Policy Center. Defense Secretary Lloyd Austin alluded to the potential effect on military pay in congressional testimony last week. "What it would mean realistically for us is that we won't, in some cases, be able to pay our troops with any degree of predictability," Austin said at a Senate Appropriations Committee hearing Thursday. Administration officials issued similar warnings the last time the U.S. was close to a default in 2021. That year, Congress approved a debt limit increase with days to spare after Senate Republicans agreed not to block legislation. While Democrats controlled both chambers of Congress at the time, they didn't have the 60 votes typically needed to advance legislation in the Senate. The negotiating dynamics are different this time because Republicans now control the House. The last debt ceiling crisis when Republicans held the House and Democrats controlled the White House and the Senate in 2011 ended with an agreement to lift the debt ceiling in exchange for steep spending cuts.
AFSA's Summit Registration Greetings AFSA Members, We are incredibly excited to let you know that Registration is now OPEN for The SUMMIT23: AFSA International Convention and Professional Education & Development Conferences. We are anticipating a full house with AFSA members, families, and guests, along with other Active Duty, Retired and Veteran military personnel. DATES: You have TWO CHOICES when registering for the AFSA-International Conference (AFSA-IC): - AFSA-IC Only: Friday, August 4 to Sunday, August 6. (Arrive Fri., Aug 4, Depart Mon., Aug 7) Cost $275. Includes all AFSA special event meal functions.
- AFSA-IC PLUS the PEDS and the Air & Space Force Honors Banquet: Friday, August 4 to Wednesday, August 9. (Arrive Fri., Aug 4, Depart Thurs., Aug 10) Cost: $325 Includes all AFSA special event meal functions, plus the Air & Space Honors Banquet.
REGISTER ONLINE Important: Your confirmation/receipt will be sent to the email that you use here to register today. - Go online to: https://www.thesummitafsa.org/AFSAInternationalConvention
- Review the page, scroll down to learn about your 2 choices, events, schedules and more.
- Click on the “REGISTER NOW” Button
- Choose the AFSA International Convention (AFSA-IC) 2-Day Only –OR -- the AFSA-IC plus PEDS/Air & Space Honors Banquet Registration.
- Select the quantities (-/+) to register with spouses, family, etc.
- Hit “CONTINUE”
- Complete the registration form (Name, Email, Mobile, Rank, AFSA Member ID, Division, Chapter, Seating request, etc.)
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- Complete payment info (credit card number, Exp date, CVV code
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- You can print a copy/screen shot for your records if preferred.
- Watch your email for the Confirmation/Receipt from ZOHO Checkout/AFSA Summit
HOTEL/ROOM Reservations are open for your stay at the beautiful Hilton Anatole in Dallas at our special $154 a night rate. Make your reservations here now: https://book.passkey.com/event/50377324/owner/863/home PLAY GOLF AND SUPPORT MILITARY SPOUSE/S SCHOLARSHIPS Join us at the Uniformed Services Foundation (AFSA’s 501©3 organization) Charity Golf Scramble, Friday, August 4 at the Irving Golf Club in Irving, Texas. $125 per golfer/$500 Team of 4. Note, you’ll need to arrive a day early as the shotgun start beginning at 9:00 am! Play or sponsor here at: https://www.thesummitafsa.org/USFGolfOuting#/?lang=en SPONSORSHIP OPPORTUNITIES If you own a business or know of a business that supports military families, we have a wide range of sponsorship opportunities during the AFSA-IC & SUMMIT23. Our goal is to help businesses share, recruit and network with their targeted market. To view and share our Sponsorship levels visit: https://www.thesummitafsa.org/InfoExpoExhibitors#/sponsors?lang=en Info/EXPO EXHIBITORS Do you own a business that supports military families, or know of an organization that does? The SUMMIT Info/EXPO is the perfect place to be! Learn about our exhibit booth opportunities by visiting: https://www.thesummitafsa.org/InfoExpoExhibitors MAIN WEBSITES The Master SUMMIT Page has information for ALL planned events including the AFSA International Convention (AFSA-IC), the AFSA-IC Plus PEDS registration, the Enlisted Leaders Conferences (ELCs – by invitation only), the PEDS, and the USF Golf Scramble. The Master SUMMIT page is located at: https://www.hqafsa.org/summit23.html Enlisted Leadership Conferences (ELCs): As of today, we are planning to host 11 ELCs. ELCs are by invitation only, and they require an ACCESS CODE (provided by your ELC/POC) to register and attend. You may learn more about them here https://www.thesummitafsa.org/EnlistedLeadersConferences PEDS: We are also hosting the PEDS Conferences for active duty NOT invited to the ELCs. Learn more here: https://www.thesummitafsa.org/AFSAProfessionalEducationDevelopmentConference
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