Shutdown Hits Federal Services: Benefits Largely Continue

Posted By: Sandra Ray Industry News,

Inform USA aims to provide information now that a federal shutdown of services has occurred. It is essential to note that all required payments must be made. Only discretionary spending is affected. Below, we outline activities and known guidance.

Social Security/Medicare/Medicaid

Social Security, Medicare, Medicaid, and Veterans benefits will continue regardless of a shutdown. Medicare has sufficient carryover funding for the first quarter of FY26. The Center for Medicare and Medicaid Services (CMS) will also continue any federal marketplace activity, such as eligibility verification using fee carryover dollars.

Social Security office activities, however, may be affected. This means that new benefit verification and the issuance of new Social Security cards may be delayed. With staff in Medicare and federal Medicaid offices furloughed during the shutdown, it may not be possible to get answers to questions submitted to them.

SNAP and WIC Benefits

October 2025 payments for SNAP recipients will be made even if there is a shutdown. The US Department of Agriculture (USDA) has not provided a 2025 contingency plan. The 2024 contingency plan stated that SNAP operations could continue for at least the immediate month. Beyond the October payments, there remains continued uncertainty about future payments.

The WIC program is likely to run out of funds quickly; there is no guidance on whether October benefits will be issued to WIC recipients.

Veterans Programs and Benefits

Veterans Health Administration (VHA) facilities are expected to remain largely unaffected, although employees conducting medical and prosthetic research may be furloughed. Almost all other employees are expected to stay on the job. Access to veterans' benefits under the Veterans Administration (VA) should continue. 

The National Cemetery Administration’s activities, like burials, scheduling of burials, first notification of death, and headstone processing, are expected to continue. Oversight and direct administration of these functions (grants programs, engagement, memorial innovations, and cemetery development/improvement will be halted until the shutdown is resolved.

Other HHS Programs/Services

According to ASTHO (Association of State and Territorial Health Officials), HHS will cease all non-exempt and non-excepted activities. This means that oversight of extramural research contracts and grants, processing of FOIA requests and public inquiries, data collection, validation, and analysis will not be performed. Grants.gov will remain operational, albeit with a reduced presence of federal support staff.

Centers for Disease Control

The CDC will continue to respond to urgent disease outbreaks and other related activities. The CDC and the Agency for Toxic Substances Disease Registry will not provide guidance to state and local health departments to protect public health. They will also not be available to communicate health-related information to the American public during a shutdown.

Substance Use/Mental Health Programs

SAMHSA will continue to support substance use and mental health programs vital to the “safety and protection of Americans”. This includes critical behavioral health resources in the event of a natural or man-made disaster. Most SAMHSA grants awarded in the last fiscal year should remain available to the grantees. This includes 988 and Behavioral Health Crisis Services program funds, State Opioids Response Grants, and the Mental Health and Substance Use Block Grants.

This posting is made with information known as of September 30, 2025. Sources for this update are:

Updates will be issued if the shutdown is prolonged and other guidance is available.