The current federal government shutdown, now the 15th such shutdown since 1980. As a reminder, this shutdown affects the vast majority of Social Security benefits and services. As political tensions escalate between parties, the potential for “irreversible” cuts to health care and social benefit programs raises concerns among beneficiaries. We agree with President Donald Trump, who recently raised alarm over these dangers, including the disastrous impact of a long-term funding lapse.
In a recent analysis, our colleagues at the Bipartisan Policy Center have described some of the ramifications if the shutdown drags on. Too often, they start by letting everyone know that fewer services will be provided. That’s not how the Social Security Administration (SSA) plans to close down its local offices. That does not ensure continued, uninterrupted service for the more than 74 million beneficiaries counting on these programs.
Maria Freese, a senior legislative representative at the National Committee to Preserve Social Security and Medicare, offered her perspective on the ongoing shutdown. To that end, she stressed its uniqueness. She stated, “The question is, is it going to be a long shutdown?” This ongoing uncertainty adds to the stress of beneficiaries who are likely to experience chaotic delays in receiving access to vital services.
Even with the complications created by the shutdown, there’s some good news coming down the pike for Social Security beneficiaries. New consumer price index data out on October 15 are likely to factor into annual inflation adjustments. Estimates indicate that beneficiaries could receive another increase in their monthly payments next year.
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Projections indicate an increase in benefits of 2.7% to 2.8% for 2026. This amounts to a mean annual increase in retirement benefits of about $54 a month.
A federal government shutdown does not immediately cease service, but impacts can start to appear very quickly. Once the shutdown goes beyond a few days, the effects start to add up. The SSA’s firm pledge to maintain all local offices during what we all hope is a short transition instills more confidence in beneficiaries. When services are cut, people can find it harder to manage their benefits.
Freese made the case that this shutdown is different than past ones as it relates to the extreme political polarization that exists between the two parties. The stakes are even higher. With funding for social benefits and anti-inflation measures increasingly contentious, phony platitudes don’t come close to cutting it.