Government Shutdowns: How they Impact Social Security, Medicare, Veterans’ Benefits, and Other Federal Payments

As of October 1, 2025, the U.S. government shutdown has halted nonessential operations after Congress failed to pass a funding bill. The good news: key benefits like Social Security, Medicare, and veterans’ services continue due to permanent or advance appropriations. But if the shutdown persists, administrative slowdowns and delays in programs such as SNAP, WIC, and HUD housing aid could emerge, especially into November.

• Social Security & SSI: Payments continue on schedule, but SSA offices face longer wait times and slower processing of new applications or card replacements.
• Medicare & Medicaid: Coverage remains intact; the Centers for Medicare & Medicaid Service (CMS) warns some provider claims and customer service may face brief delays if staff furloughs extend.
• Veterans’ Benefits: VA health care, disability pay, and GI Bill funds are protected under advance funding, though new claims reviews may slow.
• SNAP & WIC: October benefits are funded, but November payments depend on contingency reserves and congressional action, disruptions could begin earlier in some states.
• Housing & Grants: HUD rental and Section 8 payments continue short-term, but new loans, repairs, and grant approvals will pause if the shutdown lasts weeks.

At 12:01 a.m. EDT on October 1, 2025, the U.S. federal government entered a shutdown after Congress failed to pass a new funding bill. While the headlines focused on furloughed employees and closed agencies, the immediate concern for millions of Americans is more personal: what happens to federal benefits such as Social Security, Medicare, veterans’ assistance, SNAP, and housing support?

The answer is nuanced. Most essential payments will continue, due to permanent or advance funding, but administrative slowdowns, delayed claims, and program disruptions could emerge if the shutdown extends for weeks. Here’s a detailed look at how major programs are affected.

Social Security: Payments Continue, Services May Slow

Social Security and Supplemental Security Income (SSI) benefits will continue uninterrupted because they are funded through permanent appropriations, independent of annual budget negotiations. Direct deposits and mailed checks will arrive on schedule.

However, the Social Security Administration (SSA) operates with a reduced workforce during shutdowns. This means essential services like benefit disbursement continue, but administrative functions slow down. Replacing lost cards, processing new benefit applications, and handling appeals may face delays. The SSA has confirmed that its field offices remain open for critical services, but wait times could be longer and phone assistance limited.

Medicare and Medicaid: Coverage Unaffected, Some Claims May Stall

Both Medicare and Medicaid are classified as mandatory entitlement programs, ensuring uninterrupted coverage. Hospitals, doctors, and pharmacies will continue to receive reimbursement, and patients can still access care.

That said, CMS notes that administrative staff furloughs could delay claims processing and customer service responses. According to CMS.gov, temporary holds on some provider claims, lasting up to 10 business days, could occur if the shutdown persists.

Telehealth and “hospital-at-home” waivers, originally introduced during the pandemic and renewed by Congress, may face temporary gaps in oversight if no new appropriations are approved in time.

Veterans’ Services: Largely Protected by Advance Funding

The Department of Veterans Affairs (VA) operates under an advance appropriations system, which funds most of its operations a year in advance. This structure ensures that veterans’ health care, disability payments, pensions, and GI Bill benefits continue seamlessly during funding gaps.

VA hospitals, outpatient clinics, and the Veterans Crisis Line remain fully operational. However, if the shutdown lasts several weeks, administrative functions like processing new claims, reviewing appeals, or hiring support staff could slow. Veterans seeking updates on benefits may experience longer response times, but core health and compensation services remain uninterrupted.

SNAP and WIC: Temporary Relief, Limited Reserves

Nutrition assistance programs, including the Supplemental Nutrition Assistance Program (SNAP) and Women, Infants, and Children (WIC), are among the most vulnerable.

According to the U.S. Department of Agriculture (USDA), funding for October 2025 SNAP benefits has already been obligated, ensuring that electronic benefit transfers (EBT) will continue through the month despite the federal government shutdown. However, benefits beyond October depend on the USDA’s contingency reserve funds and future congressional action, as no new appropriations have been approved.

WIC operates with more limited reserves and is managed by states. USDA guidance warns that disruptions could begin earlier in some states if the shutdown continues, affecting grocery reimbursements and nutritional counseling programs for low-income families.

Housing Programs: Delays Likely if Shutdown Persists

The Department of Housing and Urban Development (HUD) and USDA Rural Development housing programs depend heavily on annual appropriations. Initially, existing rental assistance payments, Section 8 vouchers, and public housing operations will continue using available funds.

But if the shutdown stretches into several weeks, public housing authorities and landlords may face funding shortages, delaying payments and disrupting property maintenance or repairs. HUD’s contingency plan indicates that new grants, loans, and mortgage assistance approvals will be paused until funding resumes. Tenants and property owners relying on federal assistance should monitor HUD’s updates for further developments.

Unemployment Insurance and Federal Grants: State Programs Feel Pressure

Unemployment Insurance (UI) benefits will continue through state-managed trust funds, but federal oversight and reimbursement could be delayed. This means short-term payments will flow, but administrative slowdowns could occur over time.

Federal grants to states, universities, and nonprofits, covering areas from education and disaster relief to scientific research, may also be disrupted. Without federal cash flows, some state-level programs could temporarily halt or scale back services until Congress passes a new budget.

IRS Operations: Continuing Normally- for Now

Unlike in previous shutdowns, the Internal Revenue Service (IRS) is operating normally under its 2025 contingency plan. The agency is funded through the Inflation Reduction Act and multi-year appropriations, allowing tax processing, refunds, and customer service to continue as usual.

However, if the shutdown drags on and future funding remains uncertain, the IRS warns that certain modernization initiatives, audits, and hiring efforts could face slowdowns later in the fiscal year. Taxpayers can still access resources and file returns via irs.gov.

Key Takeaways

• Social Security, Medicare, Medicaid, and VA benefits are insulated from the shutdown due to permanent or advance funding structures.

• SNAP and WIC are funded for October, but disruptions could begin if the shutdown lasts into November.

• HUD housing programs, unemployment reimbursements, and federal grants may face increasing strain as funding reserves dwindle.

• IRS operations are proceeding normally, offering stability during a period of uncertainty.

Final Word

For millions of Americans dependent on federal payments, the 2025 shutdown poses more administrative frustration than financial catastrophe, at least in the short term. Core entitlement payments will continue, ensuring that Social Security checks arrive, Medicare pays providers, and veterans receive their benefits.

Yet, the longer Congress remains deadlocked, the more strain will surface at the edges: delayed claims, slower services, halted grant programs, and growing uncertainty for vulnerable households. Americans relying on nutrition assistance, housing support, or state-administered benefits should stay informed, plan ahead, and prepare for possible delays if the funding impasse extends deep into the fall.

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For a full overview of Social Security benefits, rules, and common questions, see our Social Security Explained guide.