A potential government shutdown is looming once again, and unless Congress can agree on a funding bill by Friday’s end, a range of government functions will cease. Federal employees would be furloughed. Small Business Administration loans would stop. Students wouldn’t even be able to get federal grants for college.

Social Security benefits, on the other hand, would continue to be paid out. “The Social Security Administration is considered an essential service, so there won’t be a delay in checks for Social Security,” says Martha Shedden, president and co-founder of the National Association of Registered Social Security Analysts, a nationwide, for-profit educational organization for Social Security advisors.

Still, writing checks is only a portion of what the SSA does. The department also handles disability benefits and Medicare enrollment, and it issues new Social Security Numbers, too. Here’s how those—and other important government services—could be impacted in a shutdown.

Social Security and disability payments in a government shutdown

Social Security checks still go out, but customer service would “definitely” be affected, Shedden says. The SSA’s contingency plan—which kicks in when Federal appropriations lapse and a partial government shutdown occurs—shows the agency would furlough about 8,500 of its nearly 70,000-person workforce. It would also stop processes including verifying benefits (such as for a loan application), replacing Medicare cards, updating Social Security earnings records and processing overpayments, among other tasks. 

Disability benefits, though, are the real “trouble spot,” according to Shedden. That’s because while disability checks are technically issued by the SSA, determination for those benefits occurs at the state level. And in a shutdown, each individual state would decide on its own whether to continue these services.

“The SSA wants states to continue with their work during a shutdown, but some state governments in the past have closed,” Shedden says. “Plus, they already have a backlog.”

Unemployment benefits are in a similar boat. While unemployment continues to be paid amid a shutdown, how reliably checks go out depends on the state agencies that issue them. If those agencies shut down or run out of funding to process claims, then unemployment checks could theoretically be delayed or cease. 

What you can do to prepare for a government shutdown

Government shutdowns—the 10 times they’ve occurred since 1980—are usually short-lived, ranging from one to five days in most cases. The longest-ever government shutdown (late 2018 to early 2019) lasted 35 days.

In the event we enter another shutdown, there are steps you can take to prepare. If you need to apply for disability, for example, do so as soon as possible, before a shutdown can delay your state’s determination process further. And if you need a new Medicare card or Social Security earnings record, make that request with the SSA as well. Those operations will cease if a shutdown occurs. 

Finally, if you’re a federal worker who may be furloughed during a shutdown, look into your state’s unemployment process, as you may want to apply for benefits. (Keep in mind, though, you may eventually get back pay and need to repay those unemployment earnings.)

You should also put together a list of any creditors you owe money to—such as your mortgage, car loan, student loans, etc. If finances get tight, you may need to request a payment deferral or some other sort of hardship assistance. 

“Planning for potential delays during a government shutdown is critical,” says Derek Miser, a financial and investment advisor at Miser Wealth Partners in Knoxville, Tenn. “Communicate with your debtors during this time, so they understand your predicament. This will only help protect you.”

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