(MENAFN- Live Mint) The US federal government shut down at midnight after President Donald Trump and congressional Democrats failed to reach a funding deal. The lapse marks the nation's 15th shutdown since 1981. While hundreds of thousands of federal workers face furloughs, the fate of Social Security and other benefits has become a key question for millions of Americans.

Social Security checks keep coming

Social Security payments do not stop during a shutdown. Because the program is funded through mandatory spending and permanent appropriations authorized by Congress, retirement, disability, and Supplemental Security Income (SSI) benefits continue regardless of annual budget battles.

The Social Security Administration (SSA) is projected to pay out $1.6 trillion to 72 million beneficiaries this year, making it a vital lifeline that is shielded from shutdown disruptions. Medicare and Medicaid benefits are also unaffected since they, too, are classified as mandatory spending.

What continues, what pauses

Continuing services:

Monthly Social Security checks

Medicare and Medicaid reimbursements

Veterans' healthcare and VA benefits

Applications, appeals, death reports, direct deposit updates

Paused or limited services:

Benefit verifications

Third-party queries

Routine earnings record corrections

Replacement cards

Marketing and outreach campaigns

According to the SSA's shutdown contingency plan, about 12% of its staff would be furloughed, but critical payment systems remain active.

Why inflation data matters

One risk is a possible delay in the September Consumer Price Index (CPI) report from the Bureau of Labor Statistics, which is needed to calculate Social Security's annual Cost-of-Living Adjustment (COLA). Without it, the SSA may be unable to make its yearly announcement on benefit increases, leaving retirees uncertain as they plan their budgets.

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