Government shutdown: How your Social Security payments will be affected
September 27, 2023 11:32 AM
As multiple government programs are poised to halt work as a possible government shutdown grows closer ahead of the Sept. 30 deadline, Social Security will not be one of them.
Social Security payments are issued through a private trust that is not affected by the federal government shutting down, even as millions of federal workers could temporarily go without pay. Medicare and Veterans Affairs benefits would still be distributed during a shutdown.
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Social Security benefits are paid through two sources: payroll taxes and bonds the Treasury Department redeems from Social Security trust funds. The shutdown should not be confused with the debt ceiling fight, which would have seen delays in payments had an agreement not been reached.
A shutdown does affect many other federal programs, including benefits in the Special Supplemental Nutrition Program for Women, Infants, and Children, which will stop running a couple of days into the shutdown, according to NBC News. But Agriculture Secretary Tom Vilsack said some states could keep their programs running a bit longer. The program helps pregnant women and children under 5 receive healthy food.
Although the shutdown does not affect any Social Security programs, a longer shutdown is expected to hurt the economy. The longest shutdown, which occurred during former President Donald Trump’s administration, is estimated to have cost the economy at least $11 billion directly, with indirect costs even higher, according to the Congressional Budget Office. That shutdown lasted 35 days.
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Social Security recipients receive one retirement payment each month, which goes out on the second, third, and fourth Wednesday of the month. Some recipients also receive Supplemental Security Income checks if they have limited income or are considered disabled. To qualify for the disability, the person must be at least partially blind or have a physical or mental disability that severely limits his or her daily activities for at least one year or is expected to result in death.
The highest retirement payment is up to $4,555 for people who retire at 70.