Dec. 21 Government Shutdown: Services and Payments That Could Be Affected

With the deadline for government funding approaching at 12:01 a.m. on Saturday, Dec. 21, the U.S. faces the possibility of a government shutdown. This situation arises as lawmakers debate a revised spending bill after scrapping an earlier version. The impending shutdown raises concerns about the services and payments that could be disrupted just days before the holiday season.

The Controversy Behind the Spending Bill

The uncertainty stems from disagreements over a spending bill meant to fund the government through March 14. However, the proposal was withdrawn by House Speaker Mike Johnson following objections from some Republicans, including President-elect Donald Trump. These objections focused on billions of dollars added to the bill, which they deemed unnecessary.

Adding to the opposition was Elon Musk, the CEO of Tesla, who criticized the spending bill as “terrible” and celebrated its removal, stating on social media platform X, “The voice of the people has triumphed!” Despite the controversy, House Republicans proposed a new plan on Thursday to extend government funding through the spring, with a vote anticipated later that evening.

Potential Impact of a Government Shutdown

If a shutdown occurs, federal agencies would generally stop their operations unless authorized to continue under specific exceptions like protecting life and property. This decision-making process impacts both government workers and public services.

Federal Workers and Pay

Many government employees would face furloughs, while those providing essential services—such as law enforcement and air traffic control—would continue to work. However, neither group would receive paychecks until Congress passes a new funding bill. Workers will later receive retroactive pay for the unpaid period, but for many, this delay could result in financial hardship. During the 2018 government shutdown, some federal workers turned to food banks and other resources to make ends meet.

How Social Security and Medicare Are Affected

Benefits Continue

The 67 million Social Security beneficiaries will continue receiving their checks, and Medicare services will remain uninterrupted. Laws authorizing these programs don’t require annual budget approval, ensuring their continuity.

Administrative Delays

However, the Social Security Administration’s (SSA) administrative budget is discretionary and needs congressional approval. This means services like benefit verification and processing of new applications could face delays during a shutdown, according to the AARP.

TSA and Air Travel Amid a Shutdown

With millions expected to travel during the holidays, questions arise about the potential effects on air travel. While air traffic controllers and Transportation Security Administration (TSA) agents are required to work as essential employees, they would do so without pay.

• TSA Workforce: Of the 62,000 TSA employees, about 59,000 are deemed essential and would remain on duty.
• Airport Delays: A shutdown could lead to longer wait times at airports, especially during the anticipated 40 million travelers expected through January 2, according to the TSA.

Does the USPS Operate During a Shutdown?

Yes, the U.S. Postal Service (USPS) continues to operate during a government shutdown. As an independent agency, USPS ensures that mail delivery and post office services remain unaffected.

Military and Defense Operations

Active-Duty Military

Active-duty military personnel and federal law enforcement officers will continue their work during a shutdown, though they won’t receive paychecks until new funding is approved. Most civilian Defense Department employees, however, will be furloughed.

Impact on Paychecks

According to the Military Times, affected personnel may begin feeling the financial pinch in early January when the first 2025 military paychecks, including a 4.5% pay increase, are due.

Services Likely to Be Suspended

Many government services would face closures or delays during a shutdown, including:

• Environmental inspections conducted by the Environmental Protection Agency (EPA).
• Food inspections overseen by the U.S. Food and Drug Administration (FDA).
• National parks, which are often closed during such events.
• The National Institutes of Health (NIH), which may limit certain activities.

While taxes remain due, including quarterly estimated payments on January 15, the IRS might experience delays due to staff furloughs. This could affect preparations for the upcoming tax filing season, typically starting in late January.

Duration of a Shutdown

The potential length of a government shutdown is uncertain. Analysts at Goldman Sachs suggest that a prolonged shutdown is unlikely. They also noted that a revised spending bill might pass before the Dec. 21 deadline if adjustments are made to address the concerns raised by Trump and others.

Key Services During a Government Shutdown

Service/Agency	Status	Details
Social Security Checks	Continue	Benefits are mandatory; no interruptions expected.
Medicare	Continue	Health coverage remains active.
TSA and Air Traffic	Operational (Without Pay)	Delays expected at airports.
USPS	Operational	Mail delivery and post office services remain unaffected.
National Parks	Likely Closed	Most parks shut down during a funding lapse.
IRS	Limited Operations	Tax filings could face delays due to furloughs.
Military	Active Duty Without Pay	Civilian personnel furloughed; paychecks delayed.

By breaking down the potential consequences and addressing common concerns, it’s clear that a government shutdown could have widespread effects across many sectors. Staying informed and prepared is essential during this uncertain period.

FAQs

Will government workers eventually get paid during a shutdown?

Yes, once the shutdown ends, federal workers will receive retroactive pay for the days they were furloughed or worked without pay.

Will Social Security and Medicare continue operating?

Yes, Social Security and Medicare benefits will not be disrupted, though administrative delays might occur.

Could air travel be impacted by a shutdown?

Yes, TSA agents and air traffic controllers will continue working without pay, which could lead to longer airport wait times.