What a federal debt default could mean for Maryland: recession, unpaid workers, loss of benefits

Rep. Glenn Ivey (D-4th) warned of potential dire effects on his district, which contains most of Prince George’s County and a portion of Montgomery County.

Ivey estimates that a Republican proposal that would limit spending to fiscal 2022 levels would put health care insurance, food assistance, some preschool and child care at risk along with other essential services.

“And if Republicans don’t get their way, they’re threatening to default on our nation’s bills, unleashing economic catastrophe and putting vital government services at risk,” Ivey said in a statement.

A default “would kill” an estimated 7,700 jobs in Ivey’s district. It could also jeopardize social security payments to 66,000 people in the district affect 278,000 people in the district who rely on Medicare, Medicaid, or Veterans Affairs for health care, according to Ivey.