U.S. Debt Ceiling Crisis Already Cutting Pay to Government Vendors

Government Contracts attorney Robert Tompkins were interviewed by Bloomberg Government about how the approaching debt limit is affecting federal contractors. Though there is still time for Congress to reach a deal before the government runs out of funds to pay its obligations, the situation presents immediate concerns for contractors.

Mr. Tompkins commented that should a default occur, funding Social Security and Medicare will be a much higher priority than paying contractors, which could leave companies unable to pay lenders despite completing work.

"When you think of contractors in that context, the violin strings aren't playing quite as loudly," he said.

READ: U.S. Debt Ceiling Crisis Already Cutting Pay to Government Vendors