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Monday, Feb. 6, 2023

Could a default on government debt cause members of the military in Nevada to go without pay?


yes

Active members of the military, along with veterans, could see their pay and benefits delayed if the U.S. defaults on its debt.

The government needs money to pay its bills. If it doesn’t have enough in its coffers, it borrows some. Republicans say they won’t allow the government to borrow any more money unless Democrats agree to cut future government spending. If Democrats refuse, many federal employees could see their pay and benefits delayed until an agreement is reached.

Secretary of Defense Lloyd Austin said, “If the U.S. defaults (…) I would have no authority or ability to ensure that our service members, civilians, or contractors would be paid in full or on time.”

For now, the Treasury Department has taken “extraordinary measures” to continue payments. But if Congress doesn’t raise the debt ceiling, the government may be forced to default as early as June.

See a full discussion of this at The Nevada Independent

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The Nevada Independent is a nonpartisan, nonprofit news and opinion website founded in 2017 by veteran political journalist and commentator Jon Ralston. The site and its supporting channels are focused on ethical, unbiased and transparent journalism. In general, we aim to gather and disseminate important public information and increase civic engagement. We are supported by corporate donations, memberships, event ticket sales and sponsorships and foundation grants. We disclose all our members and donors. Donors have no influence over our content, ever. The Nevada Independent is the dba for Nevada News Bureau, Inc., a 501(c)3 nonprofit founded in 2010 by Elizabeth Thompson, who now serves as one of The Nevada Independent's managing directors and its Editor.

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