6 Federal Services That Won't Be Affected by the Government Shutdown
Republicans and Democrats failed to come to an agreement that would keep the federal government open, with a shutdown beginning at midnight on Wednesday. Officials and lawmakers have traded accusations and blame, with each side pointing fingers at their political opponents.
While furloughed federal workers and contractors stand to be hit the hardest by the economic disruption of the shutdown, millions of Americans who receive service from currently shuttered or partially-shuttered agencies have also been left in a state of limbo.
During past shutdowns, people could turn to the Office of Management and Budget, or OMB. Its website was a one-stop shop to search for information about different federal agencies’ contingency plans. This time around, the White House has eliminated that resource, increasing the amount of digital legwork people have to do to find information about service cuts and interruptions.
A notice on the OMB portion of the White House website now instructs people to visit each individual agency’s site for information. (It does not provide links to these sites.)
Fortunately for Americans who rely on a number of programs, though, there are contingency plans to keep services in place and on schedule, especially if the shutdown proves to be short-lived. Here are the most significant things that aren’t changing — at least, not yet.
Tax collection
The government might be shut down, but the tax man is still on duty for the time being. In its shutdown plans updated and posted online on Monday, the IRS said it planned to tap Inflation Reduction Act funds to keep operating as usual for five business days.
The plans didn’t address what would happen if the shutdown extended beyond that duration, but presumably, many of the IRS’s nearly 75,000 employees would be furloughed, as has been the case in previous shutdowns.
Even though a shutdown would certainly be less disruptive now than if it took place in the agency’s busy January-to-April filing season, the American Institute of CPAs warned in a letter to Treasury Secretary and acting IRS commissioner Scott Bessent that a shutdown could delay the processing of extended returns, which are due Oct. 15.
Mail delivery
Mail will still be delivered. The U.S. Postal Service posted an announcement on its website last week saying that all post offices will remain open. The independent agency added that it would remain “business as usual” because it doesn’t rely on annual appropriations to fund its operations.
Medicare/Medicaid
People enrolled in Medicare and Medicaid will still get healthcare despite the shutdown, the Department of Health & Human Services said, although the furloughing of some workers could mean delays in activities like mailing out Medicare cards. HHS also said that Children's Health Insurance Program (CHIP) payments to states will continue to be made. Affordable Care Act Marketplace activities like verifying enrollee eligibility will continue without interruption.
Social Security benefits
A blog post published Wednesday on the Social Security Administration website said that retirement, disability and supplemental security income, or SSI, benefits will be sent out as usual. Benefits won’t be affected because Social Security payments are funded by a different mechanism than most federal spending. (Also, Social Security payroll taxes will continue to be collected from workers and employers.)
Local offices will remain open but services will be reduced, the agency said. People will not be able to receive proof of benefits letters or update or correct earnings records, but they will still be able to apply for benefits, change their address or bank information and obtain a new or replacement Social Security card.
SNAP benefits
The Supplemental Nutrition Assistance Program, colloquially referred to as "food stamps," is overseen by the U.S. Department of Agriculture. The way SNAP benefits are disbursed means that people enrolled in the program will get their October benefits, a USDA memo updated Tuesday confirmed.
The USDA also said it had access to contingency funds it could tap for disbursement to states. (SNAP benefits are distributed at the state level.) It didn’t specify how long these contingency funds would last, though, and the nonprofit Food Research & Action Center warned that a prolonged shutdown might impact SNAP recipients.
Student loan servicing
Student aid money comes from other funding sources that aren’t affected by the shutdown, so the Department of Education will continue to disburse Pell grants and federal student loans, it said in a memo issued Monday that laid out its contingency plans. It also said “key operations” such as processing Free Applications for Federal Student Aid (FAFSA), disbursing funds and servicing student loans would still be conducted.
More from Money:
New Bill Aims to 'Actually' End Taxes on Social Security
4 Ways a Government Shutdown Could Affect Your Money
Will the Fed Lower Rates in September? Experts Say Weak Jobs Report 'Cements' a Cut
