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Authorities shutdown doesn’t cease Social Security checks

Share this…FacebookPinterestTwitterLinkedin Social Security funds don’t require annual funding like another authorities applications. Nonetheless, the SSA can’t subject new playing…

By Staff , in Social Security , at September 30, 2021



Social Security funds don’t require annual funding like another authorities applications. Nonetheless, the SSA can’t subject new playing cards throughout a shutdown.

Yearly, Congress should go and the President should signal a funds invoice for the following fiscal yr to applicable funding for companies and applications that depend on annual funding. When Congress and the President fail to go and signal a brand new funds earlier than the beginning of the following fiscal yr, which begins in October, the federal government enters a “shutdown” through which every part with out funding can not function.

Congress has till the top of day on Sept. 30, 2021 to comply with a brand new funds to keep away from a shutdown.

Viewer Sheri requested VERIFY concerning the impacts of a authorities shutdown on individuals receiving Social Security funds. 

THE QUESTION

Are social security funds impacted by authorities shutdowns?

THE SOURCES

THE ANSWER

No, authorities shutdowns don’t affect Social Security funds. Funding for the Social Security program attracts from an impartial income pool that doesn’t require annual funding. Nonetheless, a authorities shutdown would forestall the SSA from issuing new Social Security playing cards, nonetheless.

WHAT WE FOUND

The CRFB says Social Security funds will proceed via a authorities shutdown. That is additionally true of different necessary spending not topic to annual appropriations, corresponding to Medicare and Medicaid. Necessary spending isn’t set by annual funds payments, the CBO says.

The Social Security Administration explains Social Security is financed via a devoted payroll tax, and any further revenue the taxes generate go into belief funds reserved for future Social Security funds. These funds gained’t be depleted till 2033, in keeping with the SSA’s 2021 report.

The SSA has cash out there each for administrative prices to make funds on time and for the funds themselves, even when the federal government had been to close down. However a authorities shutdown may trigger points for features of the Social Security program apart from issuing funds.

The CRFB says this system would stop verifying eligibility for advantages and issuing playing cards in a full shutdown. In a weblog submit from simply earlier than the beginning of the 2018-2019 authorities shutdown, Democratic Consultant Dan Kildee from Michigan stated {that a} authorities shutdown would forestall the issuance of Social Security playing cards, affecting about 60,000 Individuals who apply for a card every day.

Whereas not a think about most authorities shutdowns, a possible shutdown in 2021 would coincide with the Treasury Division approaching the debt restrict. The Treasury Division must maintain its each day spending no greater than its each day income if it had been to achieve this debt restrict. The Bipartisan Coverage Heart says it’s unclear if the Treasury Division has the aptitude or authorized authority to choose and select which applications to pay for. Consequently, each the Bipartisan Coverage Heart and Treasury Secretary Janet Yellen have warned that Social Security funds might be delayed in a situation the place the Division of the Treasury reaches the debt restrict earlier than Congress suspends or will increase it.

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