Impact of Federal Government Shutdown on Crucial Programs

The federal government shutdown has created uncertainty across essential programs that millions of Americans depend on for financial stability, food, and health care. Employers should be aware of these disruptions, as they may affect employees’ well-being and access to support services.

Social Security and Supplemental Security Income payments will continue without interruption, and local Social Security offices remain open with limited services. Beneficiaries can still apply for benefits, request appeals, and replace lost payments or cards. Medicare claims and payments also continue as usual. However, the expiration of pandemic-era flexibilities has halted payments for many telehealth services, leaving providers unpaid and reducing access for employees who rely on remote care.

Community Health Centers, which serve low-income and underserved populations, face funding pressure as their federal support lapsed due to the shutdown. While they can operate temporarily, prolonged funding gaps may restrict access to care. Medicaid and the Children’s Health Insurance Program remain stable in the short term, but administrative delays could slow service delivery.

The Centers for Medicare & Medicaid Services has suspended telehealth reimbursements for claims submitted after Oct. 1, creating uncertainty for providers and patients. Retroactive payments will require congressional authorization once funding resumes.

The Supplemental Nutrition Assistance Program faces a high risk of delayed or reduced November benefits, threatening food security for millions of households. The Women, Infants, and Children nutrition program could also run short of funds after Oct. 31 without new emergency appropriations. Temporary Assistance for Needy Families remains stable for now but depends on state reserves.

For employers, these disruptions underscore the need to anticipate worker stress, support affected employees, and communicate available workplace resources. A prolonged shutdown could deepen financial and health challenges across the workforce.

Take Action: Over 1,000 SHRM Members have told Congress how the shutdown impacts their communities nationwide. SHRM urges lawmakers to find a bipartisan solution, restore government operations, and protect the workforce. Stay engaged and advocate for an end to the shutdown.