How A Government Shutdown Could Affect Your Social Security and Medicare Benefits

As the federal government prepares for a potential partial shutdown, many Social Security and Medicare recipients are wondering what this means for their benefits.

The 74 million Americans who rely on Social Security and Supplemental Security Income (SSI) benefits each month won’t see a lapse in their payments if Republicans and Democrats fail to reach a budget deal by the deadline at midnight on Tuesday.

That’s because Social Security benefits are covered by mandatory spending and are approved by Congress without an expiration date. The same is true for Medicare, since the Social Security Administration handles its enrollment. 

Social Security checks and Medicare benefits both have dedicated revenue streams—the money paid into both programs by payroll taxes is separate from the government’s general fund. 

What Won’t Be Affected

In the event of a government shutdown, Social Security beneficiaries will still be able to do many things, including:

• Apply for benefits
• Make an appointment at Social Security field offices
• Change an address
• Change direct deposit information
• Request reinstatement of benefits
• Request an original or replacement Social Security card
• Report that a payment wasn’t received
• Have a hearing to determine SSDI eligibility
• Request an appeal if your claim for disability is denied

That’s according to a contingency plan the SSA published on Sept. 24. In it, the agency said 45,000 (about 90%) of its employees would stay on the job during a shutdown to handle these matters. These workers would work without pay until the government reopens, then they would receive backpay.

Necessary Medicare functions, like enrollment, doctor or hospital visits, medical treatment, and filling prescriptions would also still continue, according to the Centers for Medicare and Medicaid Services (CMS). In its own contingency staffing plan, CMS said it will keep 3,000 (about 50%) of its staff working to execute non-discretionary tasks, again, without regularly-scheduled pay.

This is not to say a government shutdown won’t negatively affect those who rely on these programs.

“That doesn’t erase the stress and uncertainty millions of seniors feel,” said Shannon Benton, the executive director of The Senior Citizens League.

“They hear ‘shutdown’ and wonder what it means for their checks, their healthcare, and their daily lives.” 

What Will Be Disrupted

Certain administrative tasks for both programs could be affected by a shutdown. Activities that are not directly related to the payment of benefits, or things that aren’t critical to the agency’s direct-service operations, would be halted, according to the SSA’s plan.

The Social Security functions that would be paused include:

• Benefit verifications
• Earnings record corrections
• Earnings record updates unrelated to the adjudication of benefits
• Payee accountings
• Requests from third parties for queries
• Freedom of Information Act (FOIA) requests
• IT enhancement activities, public relations, and training
• Overpayments processing

The Medicare functions that will be affected include:

• Earnings record corrections
• Medicare card replacements (though beneficiaries can print an official copy from their online Medicare account)
• Telehealth Medicare coverage

Additionally, there could be delays in processing new applications for both programs. Long wait times are highly likely since staffing is stretched thin—without pay.

A government shutdown will also likely disrupt the announcement of Social Security’s 2026 cost-of-living adjustment (COLA). That news, which Benton said is “something most seniors are anxious to learn each year,” is set to be announced in October. 

However, the inflation data used to calculate any annual increase comes from the Bureau of Labor Statistics, an agency within the Department of Labor that will be largely shuttered in the event of a shutdown.

Economists currently expect the 2026 COLA to be either 2.7% and 2.8%, up from 2025’s 2.5% increase.