Will the government shutdown affect Social Security checks?

Once again, the federal government faces a shutdown as Congress has failed to pass a budget. The deadline is September 30, and after GOP leaders in the House of Representatives failed to garner majority support for a budget bill earlier this week, the pressure is on. Republicans have a very slim majority in Congress’s lower chamber, meaning they can only afford to lose eight votes if they wish to pass a bill without Democratic support. Senate Republicans have called on the House to pass a bill citing the genuine concern that voters will blame them for a shutdown just as early voting begins across the country.

A shutdown just before the election would be a risky gamble, which is why many analysts expect GOP House leaders to pass a bill. Still, it is becoming abundantly clear that they must negotiate with Democrats. If no agreement is reached, the federal government will experience a partial shutdown, and we will examine the impact such an event would have on the sending of Social Security benefits.

Payments will continue

In the US, one out of five seniors depend on Social Security for ninety percent or more of their income. These critical benefits keep seniors afloat, and it takes a lot more than Congressional failure to stop sending these checks. These benefits are protected because their funding does not form part of the same budget process Congress is currently debating.

How will a shutdown impact the Social Security Adminstration?

When the risk of a government shutdown approaches, the White House asks federal agencies to provide a contingency plan. These have yet to be published, but since the country found itself in the same situation last year, we can look at the Social Secuirty Administration’s plan (SSA) provided by Chad Poist, who serves as the SSA Deputy Commissioner for Budget, Finance, and Management.

“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.