What Does a Government Shutdown Mean for Social Security?

When lawmakers are unable to pass funding legislation required for the next fiscal year, that’s when a government shutdown happens.

What does a government shutdown mean for Social Security? Will you still get your payments? What if your claim is still in process?

In today’s post, we’re discussing how a shutdown affects Social Security and what that means for you. Keep reading to learn more.

What Happens During a Government Shutdown?

Every year, Congress must pass a dozen bills that make up the discretionary spending budget and set funding levels for various federal agencies.

When lawmakers don’t pass some or all of this legislation in time for the next fiscal year, a partial or full shutdown occurs. In a shutdown, non-essential government functions stop, and many federal employees are furloughed. (This means employees are put on a mandatory leave of absence until the shutdown ends.) Essential government functions, however, are continued.

Because many federal employees aren’t working and services are stopped or slowed, this can greatly impact the day-to-day life of many Americans.

How Does a Shutdown Affect Social Security?

Fortunately, Social Security is considered a mandatory program. It isn’t funded by the short-term bills passed each year by Congress, so it doesn’t stop when there’s a government shutdown. The SSA is still able to issue checks to the nearly 67 million Americans who receive benefits.

However, that doesn’t mean that Social Security is entirely unaffected.

The Social Security Administration (SSA)—like other federal agencies—has a contingency plan for when a government shutdown occurs. The plan shows the agency would still have to furlough around 8,500 of its 70,000 workers. (That’s about 12 percent of its workforce.) The SSA would also halt some processes, including verifying benefits (like for loans), replacing Medicare cards, updating Social Security earnings records, processing overpayments, and other functions.

In addition, determination of disability benefits can also be affected. While disability checks are issued by the SSA, determination of benefits is done at the state level. During a government shutdown, each state decides if that service will continue.

What does this mean for you? It depends if you are already receiving SSDI benefits or your claim is in progress.

Will You Still Receive Your Social Security Disability Checks?

The SSA will continue to mail checks to those who receive Social Security benefits—whether they are retirement, disability, or survivor’s benefits. You shouldn’t have any issue receiving your benefits.

That’s great news for people who depend on their Social Security benefits.

How Will a Shutdown Affect Your SSDI Claim?

If your SSDI claim is still in process, you might be affected by a government shutdown.

While it’s likely that the state will continue to process applications, delays will likely result. Since the SSA is already severely understaffed, any furlough of workers will affect how quickly the agency can carry out its functions.

What’s more, the backlog of cases for SSDI appeals will almost certainly get worse. Before the pandemic—which made the delay worse—the backlog was at a shocking 526 days. That’s more than a year of wait time to appeal an SSDI decision! After a government shutdown, that wait time may increase.

If you are in the middle of making an SSDI claim, you might see delays in the processing of your claim. If you are appealing an SSDI denial, you might see worse delays. That may depend on whether or not your hearing has been scheduled: in past government shutdowns, scheduled hearings proceeded while new hearings were not scheduled. You might also see a greater wait time to receive newly approved benefits.

Have Questions? Call Us Today

Casper & Casper is here to help.

Our experienced Social Security Disability attorneys are here to answer your questions, let you know your options, and do everything possible to get you your benefits quickly. Call us today!