Government shutdown is ‘imminent’; here's how it will affect Social Security and Disability pay | Hindustan Times

Government shutdown is ‘imminent’; here's how it will affect Social Security and Disability pay

Published on: Sep 27, 2025 06:13 AM IST

The Trump administration has threatened to fire federal workers rather than simply furlough them if the government shuts down on October 1

The Trump administration has threatened to fire federal workers rather than simply furlough them if the government shuts down on October 1. This comes as House Democrats are holding a caucus meeting to discuss the funding deadline, Axios reported, citing an invitation. House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer have asked President Trump to sit down with them to discuss the details.

The government could shut down on October 1(AFP)
The government could shut down on October 1(AFP)

Trump blamed Democrats for the potential shutdown. "Democrats want to shut [government] down, and they want to shut it down because they want to give billions, ultimately trillions, of dollars to illegal migrants. These people are crazy... They're the ones that are shutting down government," he said.

What happens to Social Security and Disability pay if the government shuts down?

Social Security Administration (SSA) payments, including retirement, survivors, and Supplemental Security Income (SSI), would continue uninterrupted during a shutdown. SSA is funded through dedicated trust funds and mandatory spending, exempt from discretionary appropriations that lapse in shutdowns.

Over 70 million beneficiaries received $1.4 trillion in 2024 without delay, as confirmed by SSA Commissioner Martin O'Malley in a July statement.

Disability benefits under Social Security Disability Insurance (SSDI) and SSI would also flow normally, with automatic deposits unaffected, per Treasury guidelines.

However, indirect effects could emerge. New claims processing would slow, as SSA furloughs 60% of its 60,000 employees (non-essential staff), delaying disability approvals by weeks or months.

In the 2019 shutdown, SSA handled 1.5 million fewer calls, per a GAO report, leading to backlogs. IRS refunds for tax credits tied to disability might stall, and field offices would close, limiting in-person services.

Avoiding a government shutdown requires that Congress pass, and the president sign, legislation to fund the government before funding expires. In the House of Representatives, a simple majority is needed, currently 218 votes if all 435 members are present and voting (fewer if some are absent).

In the Senate, most spending bills and continuing resolutions need 60 votes to overcome a filibuster, though final passage only requires a simple majority (51 votes).

Stay updated with US News covering politics, crime, weather, local events, and sports highlights. Get the latest on Donald Trump and American politics also realtime updates on Indonesia ferry fire.
Stay updated with US News covering politics, crime, weather, local events, and sports highlights. Get the latest on Donald Trump and American politics also realtime updates on Indonesia ferry fire.
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