Possible government shutdown on November 17: how can it affect my social security payments?

The House of Representatives is poised to allow the government to shut down on Friday, as the newly elected Speaker Mike Johnson fails to garner enough Democratic support for his two-pronged spending approach.

As the threat of a shutdown looms, once again, Social Security recipients are worried about the fate of their benefits. In the US, one out of five seniors depend on Social Security for ninety percent or more of their income.

Payments will continue

Government shutdowns have occurred in the past in the US, but it is important to note that the sending of Social Security checks is protected from being halted due to Congressional failure. This is because the funding for these benefits is not a part of the same budget process that Congress is currently debating. Therefore, recipients of Social Security benefits can rest assured that their payments will not be suspended due to any potential government shutdown.

How will a shutdown impact the Social Security Adminstration?

As the possibility of a government shutdown looms, federal agencies are required to prepare for contingencies. The Social Security Administration’s (SSA) Deputy Commissioner for Budget, Finance, and Management, Chad Poist, provided their contingency plan.

“Our continuing functions related to making accurate payments during a lapse in appropriations is consistent with our previous contingency plan,” wrote Poist, confirming that benefits will continue to be paid in the case of a shutdown. Mr. Poist also cited legal precedents set during previous shutdowns wherein the SSA was mandated to continue making Social Security payments.

Services that are halted

This does not mean that beneficiaries will not encounter difficulties when faced with issues relating to their benefits.

Mr. Poist’s plan did outline several activities that would be stopped during a shutdown, including the processing of Freedom of Information Act (FOIA) requests, overpayment processing, and the replacement of Medicare cards, among other activities typically carried out.

These responsibilities must be cut because around 8,500 SSA workers will be furloughed. In other words, these government employees will be sent home without pay until Congress passes a funding bill.