Concerns regarding the impact on federal services and payments are raised whenever there is a government shutdown. Whether or not Social Security payments would be delayed is a major concern for millions of Americans who depend on them. Retirement, survivor, and disability benefits from Social Security will continue to be paid whether or not the government shuts down.
However, there will probably be short-term effects on a few of the SSA’s services, such as benefit verification and new card issuance. They are exempt from appropriations legislation since they are seen as obligatory spending. Mandatory spending can be approved for a one-year period or forever, but discretionary spending needs annual appropriations.
How Social Security benefits are affected during shutdown?
- Social Security, compared to other federal programs, is financed by SSTF and payroll taxes rather than the whole government budget. Because the trust fund functions independently of the yearly appropriations process, payments are made automatically even in the event of a delay in government financing.
- Payments, however, continue uninterrupted, but there may be delays in certain SSA services. Since some SSA personnel are usually placed on hold during a shutdown, the agency’s ability to provide several non-essential functions is restricted.
- Processing new Social Security benefit applications is one of the main areas impacted. People who apply for benefits during a shutdown could have to wait longer for their claims to be reviewed and approved since fewer staff members are available.
- Due to the fact that requests for replacement Social Security cards are often regarded as non-essential tasks, people may also experience delays. Furthermore, it could take longer to issue benefit verification letters and make adjustments to earnings records.
What to do?
Wait times for customer service may lengthen during a shutdown for those who require assistance from the SSA. Due to the laying off of non-essential personnel, fewer staff members will be available to answer inbound requests, which could impact phone assistance and in-person appointments. Administrative support is decreased even though the SSA’s core operations, such as payment distribution, continue to run smoothly.
People who plan to seek a new card or apply for benefits should think about doing so before a possible shutdown happens because the process might take longer. During a shutdown, consumers can still access the SSA’s “My Social Security” web interface to track payments, view benefit statements, and change personal data.
Shutdowns in Past
In the wake of the pandemic, the Social Security Administration had advised people to try using their online services before contacting them by phone. Throughout the roughly one-month-long 1995 shutdown, checks were mailed by the Social Security Administration. Because it doesn’t require annual funding authorization from Congress, Social Security has been able to continue paying benefits.
Rather, Social Security payouts are funded by the program’s trust fund and are regarded as mandated spending; as a result, the agency has the resources to keep providing benefits. Social Security benefits have particular protections because to a 1996 statute established by Congress.
Social Security had enough workers in 1995 so that checks could be sent out immediately. Two times in less than a month in early 2018, the government shut down completely. Neither of these shutdowns was long enough to serve as a model for what might occur to Social Security in the event of some shutdown.
The government went into a partial shutdown on December 22, 2018, when President Trump refused to sign the temporary budget package that Congress had enacted. This shutdown continued into January 2019. Since several departments had previously received funding through September 2019, this 35-day shutdown was only a partial one, making it the longest in US history.
Government shutdown and its affects
- Air travel: Workers at the Transportation Security Administration would be unpaid since it is deemed necessary. Delays and disruptions may still occur.
- Social Security: Because Social Security is considered important, payments to current recipients will continue, but staff furloughs may create delays in services for new claims.
- Medicare and Medicaid: Benefits would still be paid to current beneficiaries, but new applicants would experience delays.
- Mail Service: The US Postal Service would be open and continue to operate.
- Student Loans: The payment processing for student loan services will continue, and the due dates will remain unchanged. However, there may be delays when contacting an agent or seeking assistance.
- Pay for federal employees: When a shutdown ends, federal employees who were furloughed will get their back pay, but government contractors won’t.
- Passport Services: Applications for passports may not be processed at all or may be processed slowly.
- FEMA: FEMA will continue to respond to crises in the case of a disaster, but long-term projects would be postponed.
- National Parks and Museums: A lot of federally supported museums and national parks would probably close or have their hours restricted.
- Food Assistance Programs: New enrolment or renewals may experience delays, but recipients of SNAP would continue to receive payments.
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