Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

Here’s what happens to Social Security payments if the government shuts down

by September 28, 2023
September 28, 2023
Here’s what happens to Social Security payments if the government shuts down

If the federal government shuts down Sunday, numerous publicly funded agencies will stop work and their employees won’t be paid, but Social Security checks will still go out.

Social Security is considered a mandatory program, and it isn’t funded by the shorter-term appropriations bills passed by Congress and signed by the president. That means its operations and funding don’t stop when the government shuts down.

That’s important for a large proportion of Americans, as about 67 million people receive monthly Social Security benefits, according to the Social Security Administration. Those benefits go primarily to retirees but also to people with disabilities, as well as dependents of deceased beneficiaries. 

Medicare and Veterans Affairs benefits also continue to be distributed during a shutdown.

The federal government will shut down at 12:01 a.m. ET Sunday if Congress does not pass a bill to provide more funding. The GOP has a narrow majority in the House, and a group of hard-line conservatives is holding out from the rest of Republicans and demanding deep cuts in government spending.

President Joe Biden and the Democrats, who control the Senate, oppose those cuts.

In the event of a shutdown, ‘nonessential’ actions would stop, and 4 million federal employees would not receive paychecks.

Some, including members of the military, would work without pay and would receive back pay later on, after a new funding bill is passed and signed into law. Other federal employees would be furloughed and would not report to work.

And a shutdown would stop many other federal programs and services. The Biden administration said Monday that the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC, will stop operating one or two days into a shutdown, although Agriculture Secretary Tom Vilsack said some states might be able to keep their programs running a bit longer than that.

WIC is a program intended to help low-income pregnant and postpartum women, as well as children under age 5, access healthier food. According to the Agriculture Department, more than 6 million people received WIC benefits each month in 2022, including about 39% of all U.S. infants.

A long shutdown could harm the economy, as well. The longest shutdown lasted for 35 days, from Dec. 22, 2018, to Jan. 25, 2019, and the Congressional Budget Office estimated that it cost the U.S. economy at least $11 billion directly, with indirect costs that were harder to quantify.

A government shutdown should not be confused with a debt ceiling standoff. The U.S. reached its borrowing limit, called the debt ceiling, earlier this year. That standoff could have prevented Social Security checks from going out had it lasted long enough, but after a protracted impasse, congressional Republicans and Democrats agreed on a deal to prevent it.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Looking at Recent Market PULLBACK in a Long-Term Context & More!
next post
Rite Aid chain reportedly could sell up to 500 stores in bankruptcy plan

Related Posts

Egg prices are falling, with a dozen now...

March 15, 2025

Capital One-Discover merger could put a bigger squeeze...

February 21, 2024

Walmart launches new grocery brand as it tries...

May 1, 2024

Customers from the East Coast to the Midwest...

March 27, 2024

Mortgage rates are now at the highest level...

April 19, 2024

Will schools finally pay student-athletes? What a historic...

May 25, 2024

Autoworkers go on strike at plants at each...

September 15, 2023

Nvidia says it is not sending GPU designs...

May 17, 2025

You have a month left to get your...

August 1, 2023

Palm Beach housekeepers are making $150,000 a year...

May 24, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    • Operational Update

    • Sun Summit Drills 78.0 Meters of 3.72 g/t Gold Including 19.1 Meters of 7.50 g/t Gold at the JD Project, Toodoggone District, B.C.

    • Juggernaut Samples up to 256.60 g/t Or 8.25 oz/t Gold and Identifies 4 New Gold-Rich Zones that Remain Wide Open and are Drill Ready within the Highway of Gold Corridor on the Big One Property, Golden Triangle, B.C.

    • Kenvue stock drops 10% on report RFK Jr. will link autism to Tylenol use during pregnancy

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    Categories

    • Business (1,371)
    • Investing (2,873)
    • Politics (3,699)
    • Stocks (1,783)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved