How the Government Shutdown Will Impact Social Security Disability?

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The government is expected to shut down at 12pm eastern time on September 30, raising questions about how it will affect Social Security Disability. While some federal agencies will pause operations, much of the Social Security Administration will continue to operate and the Disability process will continue. In this article, we’ll explain how a shutdown may impact your benefit payments and the processing of your disability claim.

Payment of Benefits

Individuals currently receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits will continue to get their payments, even if the government shuts down. That’s because Social Security is funded through mandatory spending. Mandatory spending funding that has already been approved by Congress and doesn’t require annual renewal. As a result, retirees, people with disabilities, and the dependents of deceased workers should not experience any disruption in their monthly benefits.

Processing of Disability Claims

New and pending disability applications will continue to be processed by the Social Security Administration at all levels during a government shutdown. This means that any applications filed or already in progress will still move forward. All other stages of appeal, including Requests for Reconsideration and Appeals Council reviews, will also continue to be processed.

Importantly, while SSA has asked state-run Disability Determination Services (DDS) to maintain normal operations, and has committed to reimbursing them once funding is approved. This is important because the DDS is the office that is charged with reviewing the medical records and other files to make a medical decision regarding disability. However, the agency cannot guarantee that DDS employees won’t be furloughed, since they are state employees.

Additionally, the hearing process will continue. Administrative Law Judges, decision writers, and essential hearing staff will keep working, ensuring that disability hearings and decisions will proceed without delay during a government shutdown.

SSA Services That Will Shut Down

Some Social Security services will be impacted by a government shutdown. According to the latest contingency plan, the following services would be temporarily halted. While core functions like benefit payments and disability claims processing will continue, these non-essential services may be delayed until the shutdown ends.

  •   Benefit verifications
  •   Corrections or updates to earnings records not related to a current claim
  •   Payee accountings
  •   Suspension of prisoner-related activities
  •   Requests from third parties for information
  •   Responses to Freedom of Information Act (FOIA) requests
  •   IT system enhancements, public relations efforts, and staff training
  •   Issuance of replacement Medicare cards
  •   Processing of overpayments

For more information on the services that will and will not be available during the shutdown, you can see the Social Security Office of Finance and Management’s Lapse Plan Summary Overview. Here is some information from the SSA shutdown plan regarding the Social Security disability system:

Social Security Services on Initial Applications, CDRs, and Other Administrative Issues

Continued ActivitiesDiscontinued Activities
  • Application for benefits (including appointments; limited data exchanges and record corrections, including claims-related earnings, for mandatory benefits)
  • Request for appeals (reconsiderations, hearings, Appeals Council)
  • Post-entitlement actions that impact payment (e.g., changes of address, Supplemental Security Income (SSI) living arrangement changes, non-citizen verification/changes, direct deposit, death inputs, remittances for overpayments and administrative fees)
  • Non-receipts and critical payments
  • Payee changes
  • Direct contact reinstatement of benefits
  • Issuance of original and replacement Social Security cards
  • Prisoner activities—only beneficiary-initiated reinstatement of benefits
  • SSI non-medical redeterminations and continuing disability reviews (CDR) (We will notify components at the time of a lapse as to the availability of program integrity funds.)
  • CDR-related appeals
  • Critical information technology (IT) support for daily processing activities
  • IT acceleration work supported by the extended availability of the Technology Modernization Fund1
  • Fraud prevention activities
  • Benefit verifications
  • Earnings record corrections and updates unrelated to the adjudication of benefits
  • Payee accountings
  • Prisoner activities—suspension
  • Requests from third parties for queries
  • Freedom of Information Act (FOIA) requests
  • IT enhancement activities, public relations, and training
  • Replacement Medicare cards
  • Overpayments processing

DDS Level Services

State Disability Determination Services Activities
Continued ActivitiesDiscontinued Activities
  • Initial claims, including terminally ill, compassionate allowances, quick disability determinations, dire need, and wounded warriors
  • Reconsiderations
  • Critical IT support for daily processing activities
  • CDRs (We will notify components at the time of a lapse as to the availability of program integrity funds.)
  • CDR-related appeals
  • Assistance requests for hearings
  • End-of-line quality assurance reviews, IT enhancements activities, public relations, and training

Social Security Services at the Hearing Level

Hearings and Appeals Activities
Continued ActivitiesDiscontinued Activities
  • Hearing cases
  • Deciding cases
  • Drafting relevant notices for claimants
  • Preparing electronic records for claimants and representatives
  • Identifying missing evidence and developing the record
  • Exhibiting case files for administrative law judges
  • Decision writing
  • Screening cases for on-the-record decisions
  • Scheduling hearings
  • Providing critical IT support for daily hearings
  • Hearing appeals
  • Deciding appeals
  • Docketing and tracking new cases
  • Adding new medical and vocational experts
  • Conducting quality assurance review activities related to allowances
  • CDRs (We will notify components at the time of a lapse as to the availability of program integrity funds.)
  • CDR-related appeals
  • Conducting quality assurance review activities other than those related to allowances
  • Processing bias complaints from claimants and representatives
  • Responding to congressional inquiries regarding support for casework on constituent hearings and appeals
  • Conducting all activities dependent on Operations support, including enrollment of appointed representatives for eFolder access
  • Responding to FOIA requests and public inquiries
  • Providing training and IT support or enhancements for hearing offices

FAQs

No. SSDI and SSI benefits will continue to be paid because they are funded through mandatory spending that does not depend on annual budget approval.
Applications and appeals will still be processed. SSA offices and Administrative Law Judges will continue reviewing and deciding cases, though some delays could occur if state-run Disability Determination Services (DDS) staff are furloughed.
Yes. Hearings and decisions will continue because Administrative Law Judges, decision writers, and essential staff are considered critical workers who remain on duty.
Non-essential services such as benefit verifications, FOIA requests, payee accountings, prisoner-related updates, and issuance of replacement Medicare cards will be temporarily paused.
Possibly. While SSA intends to keep disability claims and hearings moving, some functions handled by state DDS employees could be delayed if states furlough staff during an extended shutdown.

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