As November 18 approaches, many Social Security beneficiaries in the United States are concerned about a possible government shutdown. Congress must agree on a federal budget to keep various programs running smoothly. This article will explain what could happen and how it might affect Social Security payments.
Social Security and the Federal Budget
What Happens on November 18?
November 18 is the deadline for Congress to agree on a federal budget. If they don’t, the government may shut down. This means that many federal programs could face difficulties, including those that rely on the federal budget to send payments.
Who Relies on Social Security?
About 71 million people in the United States receive money from Social Security or Supplemental Security Income (SSI). Most of these beneficiaries are over 62 years old and depend on their monthly payments to make ends meet. The potential government shutdown raises concerns for many of these recipients.
Will Social Security Payments Be Affected?
Continuation of Payments
Despite the threat of a shutdown on November 18, Social Security payments will continue as usual. If you receive your payment on November 22, there is no need to worry. But why is this the case?
How Social Security is Funded
The Social Security Administration (SSA) has its own fund to make payments. This means it doesn’t rely on the federal budget to send money to seniors or those on disability benefits like SSDI. The funds come from payroll taxes paid by employees and employers. In 2023, the taxable maximum is $160,200, which will increase to $168,600 in 2024. Once your earnings go over this amount, you don’t pay more payroll taxes.
Understanding Mandatory Spending
What is Mandatory Spending?
Millions of Americans receive monthly benefits through Social Security, SSDI, or SSI. Some people receive both Social Security and SSI due to low income. These payments are part of the Federal Government’s mandatory spending, required by the Social Security Act. This means the government must send these payments, regardless of the budget situation.
Other Mandatory Programs
Medicare is also part of mandatory spending, ensuring that payments continue even during budget issues. The Supplemental Nutrition Assistance Program (SNAP), which provides Food Stamps, is included in mandatory spending. However, the Women, Infants, and Children (WIC) program is not mandatory spending, which could be affected by a government shutdown.
While a potential government shutdown on November 18 raises concerns, Social Security and other mandatory spending programs will continue to function. Social Security beneficiaries can expect their payments as usual because the SSA uses its own funds from payroll taxes. It is essential to stay informed about government budget discussions, but for now, beneficiaries can rest assured that their payments will continue.
1. Will my Social Security payment be affected by a government shutdown?
No, your Social Security payment will not be affected by a government shutdown. The SSA uses its own funds from payroll taxes to make payments.
2. What is the deadline for Congress to agree on a federal budget?
The deadline for Congress to agree on a federal budget is November 18.
3. How is Social Security funded?
Social Security is funded by payroll taxes paid by employees and employers. The SSA uses these funds to make payments.
4. What programs are included in mandatory spending?
Programs included in mandatory spending are Social Security, SSDI, SSI, Medicare, and SNAP.
5. Will WIC be affected by a government shutdown?
Yes, WIC could be affected by a government shutdown because it is not considered mandatory spending.