Do Social Security checks still go out? If the checks are stopped, would all monies due be paid eventually?
According to the House Committee on Ways and Means, Social Security checks will continue to go out. Disability benefits will also continue to be paid. All Social Security offices will remain open for their usual business hours. Applications and requests for appeals will be processed. Hearings will be held, though services in hearing offices will be limited. State Disability Determination Services (DDS) will be asked to remain open; however since these 100 percent federally-funded agencies are staffed by State employees, each State will make its own decision whether to maintain limited operations. DDSs decide initial disability claims and make reconsideration decisions.
Will Medicare payments be made, to doctors, hospitals, including emergency hospitalization and ER visits?
According to the House Committee on Ways and Means, in the short-term, Medicare services for current beneficiaries will continue without interruption during a temporary lapse in government funding. This is due primarily to the fact that funds to pay Medicare claims are not dependent on appropriations, but are transferred from the Medicare trust funds. Medicare Parts A/B (doctors and hospitals) fee-for-service claims are processed by independent Medicare Administrative Contractors (MACs). MACs also are paid with Medicare trust funds. Additionally, Medicare has up to 30 days to process clean claims, so claims that are paid today were incurred up to 30 days before. However, some Medicare administrative activities are funded through discretionary appropriations and may be suspended during a temporary lapse in government funding. In the past, activities such as enrolling new beneficiaries and providers were suspended during a government shutdown. Fraud programs that receive mandatory funding would continue, however some fraud programs that rely on discretionary funding would be postponed. Appeals and other activities to administer the program also might be suspended during a shutdown.
Will Medicaid/SCHIP payments be made?
According to the House Committee on Energy and Commerce, because Medicaid allotments are paid to states in advance on a quarterly basis, it is likely states will not see an immediate impact from a temporary government shutdown and consequently, nor will providers who serve the Medicaid and SCHIP populations.
What happens with disability benefits (SSDI)?
According to the Committee on Ways and Means, disability benefits will also continue to be paid. State Disability Determination Services (DDS) will be asked to remain open; however since these 100 percent federally-funded agencies are staffed by State employees, each State will make its own decision whether to maintain limited operations. DDSs decide initial disability claims and make reconsideration decisions.
What happens with Unemployment Benefits?
State and Federal extended benefits are mandatory spending and will not be affected if a shutdown occurs. There is a concern about federally funded state administrative funds, but the Department of Labor just did a significant transfer of remaining state administrative funds in anticipation of the end of the fiscal year. Initial unemployment claims data will continue to be released each Thursday. However, any other data from the Bureau of Labor Statistics, such as the monthly jobs report currently scheduled for release on Friday, October 4th, will be delayed.
What happens with Work training programs?
According to the House Committee on Education and the Workforce, workforce training programs are funded through June 2014. Unless there is a protracted shutdown there should be no impact.
What happens with Welfare (TANF)?
According to the House Committee on Education and the Workforce, TANF is shared jurisdiction with Ways and Means. Education and the Workforce has jurisdiction over the work requirements portion and Ways and Means has jurisdiction over the funding. According to staff at the House Ways and Means Committee, TANF is authorized through the end of FY 2013, and quarterly funding for the program would be suspended until the program were reauthorized as part of a CR or stand-alone bill. States continuing to provide TANF services would do so with their existing funds.
How is housing – Section 8, Section 202 (elderly), Section 811 (disabilities), homelessness programs – affected?
According to the House Financial Services Committee, HUD programs would be affected. Most of the HUD programs are run on schedules other than day-to-day Federal involvement – that is, they are administered by local authorities, they are grants made to non-Federal entities (public or private), or they are contract payments made in advance (payment is made now for services to be rendered, rather than services being performed and sending a bill after). However, they will not close overnight. For example, the Office of Public and Indian Housing (PIH), which administers Section 8 vouchers and public housing funds, will address emergency situations where the failure to perform those functions would result in an imminent threat to the safety of human life or the protection of property. In addition, PIH will: -- Keep open the line of credit control system for the purposes of disbursing funds for public housing (operating subsidies and capital funds) that were appropriated in prior years or necessary to support an exempted activity. Funds that have already been obligated in the system and which can be drawn down without further action or review by HUD employees may also be accessed. -- Keep open the line of credit control system for section 8 tenant-based rental assistance, noting that funds are only available for payments through December.
Closings on Section 202 (Elderly) and 811 (Disabled) projects with firm commitments with schedule closing dates during the shutdown period will continue, in addition to final closing on projects with critical deadlines. No construction draws or construction inspections will be done in the first 10 days of any shutdown and will be re-evaluated as needed for use of intermittent staff. The Office of Community Planning and Development (CPD) will continue to provide for the delivery of essential housing and emergency services for homeless persons and persons with AIDS to protect against imminent threats to the safety of human life and will continue to disburse CDBG, HOME funds and other block grant funds in cases where failure to address issues result in a threat to safety of life and protection of property.
Are the Pension Benefit Guaranty Corporation be affected?
According to the agency itself, “PBGC will remain open. PBGC does not receive any funding from taxpayers. As such, we will continue to operate under the authority of ERISA, the original legislation establishing PBGC as a separate corporation.”
How are Food Stamps be affected?
According to the September 27, 2013 contingency plan published by USDA and OMB, “the Supplemental Nutrition Assistance Program (SNAP) will continue operations and eligible households will still receive monthly benefits for October. The authority to make October benefit payments comes from the Recovery Act, through which Congress provided ‘such sums as are necessary’ to finance the SNAP benefit provided for in the Recovery Act. In addition, about $2 billion in contingency funding will be available and could be used to support State Administrative activities essential to continue the program and issue and process benefits. These contingency funds were provided in the FY 2013 appropriation and do not expire until the end of FY 2014.”
What happens to school lunches?
According to the USDA, cited by the House Committee on Education and the Workforce, “Child Nutrition (CN) Programs, including School Lunch, School Breakfast, Child and Adult Care Feeding, Summer Food Service and Special Milk will continue operations into October. Meal providers are paid on a reimbursement basis 30 days after the end of the service month. Limited carryover funding will be available during a lapse to support FY 2014 meal service. Once an appropriation is enacted, we expect additional resources will be available to reimburse October performance. In addition, most State agencies will continue to have fiscal year 2013 funds available for State Administrative Expenses (SAE). SAE funds are awarded to States for a two year grant period and they are permitted to carryover up to 20 percent of their allocation into the second year of the grant period.” How would student Loans/work study be affected? Would funding be released? Would repayment checks be cashed? According to the U.S. Department of Education, cited by the House Committee on Education and the Workforce: “In the event of a government shutdown, we anticipate that there will be limited impact to the federal student aid application (FAFSA) process, to the delivery of federal student aid, or to the federal student loan repayment functions.”
Are FHA Mortgage loans be affected?
According to a document provided by HUD, the FHA’s Office of Single Family Housing will endorse new loans under current multi-year appropriation authority “in order to support the health and stability of the U.S. mortgage market.” The Office of Single Family Housing will maintain the minimum operations necessary to support FHA’s existing portfolio by operating the FHA Call Center and the National Servicing Center’s Call Center. How would the National Flood Insurance Program be affected in terms of mortgage closings and payment of claims?
According to the House Financial Services Committee, NFIP would continue to pay claims and sell policies in the event of a shutdown. Responses to day-to-day questions would be curtailed due to only essential personnel being on the job.