Expired Soon! Government Shutdown in October: Impact on Your Social Security Payments

MJP –

The federal government’s budget is scheduled to expire at midnight on September 30, 2024, unless Congress takes action.

The yearly budget for the federal government is comprised of twelve spending measures that must pass both chambers of Congress before being signed into law by the president. This process is notoriously difficult for Congress to accept.

While the House and Senate negotiate the specifics of the yearly budget, they often enact continuing resolutions, which are short-term spending legislation, to keep the government operating. The budget for this year was finalized after four temporary spending bills were authorized by Congress. There will be a government shutdown if Congress does not approve funds by October 1st.

If you are eligible to receive federal benefits, such as Social Security, and the government shuts down, you may be concerned about whether or not you will still receive your October check.

What may happen to Social Security payments in the event of a government shutdown is detailed below. If you want to know more, here are four ways your Social Security benefits could be cut, and here is what the experts think the cost-of-living adjustment will be in 2025.

In the event of a government shutdown, will I still receive my Social Security payment?

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During a government shutdown, every agency determines which services are necessary and must be maintained despite the lack of money.

The Social Security Administration’s backup plan was laid out by Chad M. Poist, the agency’s deputy commissioner of budget, finance and administration, in 2023, in anticipation of a shutdown (PDF). Despite his prediction that the government would lay off 53,000 workers out of 60,000 and end any operations unrelated to benefit payments, he assured the public that the department would “continue activities critical to our direct-service operations and those needed to ensure accurate and timely payment of benefits.”

In your opinion, what does that imply?

Benefits for Social Security are paid out of a separate fund than the yearly budget, which is the Social Security trust funds, which are funded by the dedicated payroll taxes paid by employers and employees.

Your regular paycheck will continue to arrive in the mail if you are one of the approximately 72 million Americans who get benefits from Social Security or other programs (for more information, see below).

That encompasses SSDI, SSI, and Social Security Disability Income (SSDI), among others. Keep in mind that the Social Security Administration can take some time to respond if there are problems with your payments.

Below you’ll find a list of federal perks that may be impacted in the event of a shutdown

No one’s Social Security benefits should be affected by a government shutdown.

In the event of a government shutdown, which more federal programs would remain unaffected?

Medicare and Medicaid recipients can also count on prompt payment of their benefits. There may be a brief delay in responding to your concerns in the event of a shutdown.

Snacking on WIC and SNAP could be cut off.

Immediate loss of aid for those on WIC (Special Supplemental Nutrition Program for Women, Infants and Children) is a real possibility in the event of a government shutdown.

Because the USDA is only allowed to send out payments for 30 days after a shutdown begins, SNAP benefits would still be available to the 40 million Americans who receive them, but for a short time.

Possible postponement of your college loans and financial aid

The application procedure for Federal Student Aid (FAFSA), the distribution of Pell Grants and Federal Direct Student Loans, and the servicing of Federal student loans are all systems that the Department of Education has warned could be affected by a potential government shutdown in 2023.

You can count on receiving your Social Security benefits on time by following this schedule, which details when SSDI checks are sent out and when your SSI payment is expected to arrive.