Potential Government Shutdown: Impact on Social Security and VA Benefits Explained


As politicians work to avert a government shutdown at the end of the month, many people are becoming anxious about how it will effect them, particularly when it comes to federal monthly payments.

If Congress fails to pass a budget agreement, the government might shut down by the end of next week. House Speaker Kevin McCarthy pledged Wednesday that he would not give up on convincing his colleagues to adopt a temporary financing plan.

Nonetheless, the shutdown looms.

So, how does this affect your Medicare, Medicaid, Social Security, or Veterans Affairs payments?

In short, they will be unaffected.

Medicare, Medicaid, and Social Security are supported by permanent appropriations, as opposed to other programs that require renewal (which are affected by the current budget debates).

According to the Department of Veterans Affairs’ contingency plan (the most recent of which was revised in 2021), Veterans Health Administration institutions are projected to stay open and fully operational, with most personnel remaining on the job due to advanced funds.

The VA has also determined that compensation and pension payments, housing, and burial services will be available if the government shuts down.

So, regardless of whether the government shuts down, if you get payments from these agencies, you will continue to do so in October. However, you may have difficulty contacting someone inside their individual agency because some may be on furlough during a potential closure.

While every federal agency is obliged to have a contingency plan in place in the case of a shutdown, it’s unknown how a hypothetical Oct. 1 shutdown would affect government operations, but critical services would be maintained.

CNN says that this includes border security, federal law enforcement, and air traffic management. Because it is funded independently, the United States Postal Service would likewise continue to operate.

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What’s the latest on the shutdown negotiations?

House Speaker Kevin McCarthy unveiled a funding proposal to avoid a federal government shutdown by satisfying his hard-right wing, only to see it immediately fall in a devastating defeat on Thursday.

His most recent attempt to pass a normally popular defense budget measure was destroyed by a core group of Republican colleagues who refused to support for the speaker’s ideas.

A test vote to move the bill failed, 212-216, as a few Republicans joined Democrats in opposing it. The House then abruptly came to a halt and proclaimed itself in recess.


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Source: Yahoo News

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