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In the wake of the recent chaos surrounding whether lawmakers can solve long-term spending disagreements on budget caps, disaster funding, deficit concerns and a number of other issues, the possibility of a government shutdown is lingering. How are payments affected by a government shut down? Will payments to your customers and members cease to exist if congress does not reach an agreement?
If the U.S. government shuts down, that does NOT mean that the entire federal operations quit working. It means that NONESSENTIAL federal workers are furloughed and are barred from working. This may affect the pay of nonessential federal workers, but it does not stop some essential functions of the U.S. government from operating as usual.
Below is a breakdown of major government agencies operating payments and how they are or aren’t impacted by a shutdown:
Social Security – OPEN. Social Security recipients would continue to receive their benefits. Most of the agency’s employees would continue to work.
Veteran’s Administration – OPEN. Nearly 96% of the agency’s employees would continue to work. V.A. hospitals would remain open on most levels.
U.S. Treasury – OPENish. More than half of employees would be furloughed, but essential functions will be carried out.
U.S. Post Office – OPEN. The Post Office operates under its own budget and is not directly impacted by a government shutdown.
Internal Revenue Service – OPENish. Tax returns can still be filed or submitted online. If the federal government shutdown ends before January 29, there shouldn’t be a noticeable effect on getting tax refunds processed because the IRS wasn’t planning to accept tax returns until January 29. However, if the shutdown lasts longer, there could be delays in IRS payment processing. Consumers planning on a tax refund for a big January or February purchase may want to hold off.
Military – OPENish. The U.S. military will still operate as usual, but military pay is withheld until congress makes appropriated funds available to compensate them for this period of service.
Financial Aid Support – OPEN. There should be no effect on the Free Application for Federal Student Aid. And, student loans and federal aid have already been distributed for 2017/2018.
Unemployment – OPEN. Unemployment insurance is distributed by states but funded by both states and the federal government. According to Congress, it has enough money to survive a short shutdown without interrupting benefits.
Medicare – OPEN. Medicare would operate largely without disruption.
SNAP and WIC – Open. The Department of Agriculture programs would continue.
Congress – OPEN and pay is not withheld. The salaries of House and Senate members are permanently authorized in the U.S. Constitution. Some members have announced they will voluntarily forego their salaries until the government funding is restored, pledging to donate that portion of their salaries to charities.
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