A government shutdown brings many of the nation’s federal functions to a halt while lawmakers hash out an agreement to infuse new funding for services like passport processing, disaster aid, and small business loans.
But if you’re among the 68 million Americans who receive Social Security benefits, your monthly checks will continue.
How a shutdown affects Social Security and Medicare
You’ll still receive your Social Security check if the government shuts down. You can still apply for benefits or make an appointment with Social Security if the government shuts down. If you rely on Medicare for health insurance, you can still go to the doctor if the government shuts down. But that doesn’t mean you won’t feel the effects of a government shutdown if you receive these benefits. We’ll cover a few ways beneficiaries could feel the sting. But first, let’s discuss why Social Security and Medicare benefits will be largely unaffected if lawmakers in Washington fail to reach a deal.
The government services impacted by a shutdown are those that rely on discretionary spending. The U.S. House of Representatives and U.S. Senate have to work out a budget each year to fund these federal agencies and programs. These programs account for about a third of the annual budget. But Social Security is a mandatory spending program, as is Medicare, the federal health program for people 65 and older and those with long-term disabilities. These programs aren’t subject to annual appropriations. Their funding is mandated by law.
Both Social Security and Medicare have a dedicated revenue stream: the payroll taxes that eat up 7.65% of most workers’ paychecks that employers must match. The money you pay into both of these entitlement programs is kept in trust funds that are separate from the federal government’s general fund.
As a result, Social Security checks and Medicare benefits can continue even in the absence of a congressional spending deal.
