Amid the federal government shutdown that has triggered a national debate, what is arguably most concerning is the negative impact on government programs that many people in underserved populations rely on.
The ongoing government shutdown has entered its fourth week, as of October 29, placing key health, financial, and nutrition programs at risk for individuals and families across the United States.
Experts warn that benefits from SNAP, WIC, and heating assistance through LIHEAP could be delayed if the stalemate continues, potentially affecting food security and household budgets for many Black and brown families.
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Many Black Americans are federal workers and could be hit the hardest by furloughs and lack of services, according to a report by Capital B. Black Americans represent 13 percent of the total U.S. population but about 20 percent of the federal workforce.
Experts also point to wider economic effects as federal workers could miss paychecks and community programs face funding gaps.
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At the same time, some state benefit programs are affected as well, since they get most of their funding from the federal government. Programs like food assistance, Medicaid, or unemployment benefits can slow down or stop because the federal money or staff may not be available.
What is the issue
Congress is deadlocked over a new budget, with lawmakers at odds over health care funding and subsidies. The shutdown that began on October 1 has become the second-longest in U.S. history. Many Republicans argue that Democrats want to fund health care programs for illegal immigrants, while Democrats say GOP spending measures fail to address the health care crisis faced by Americans.
Programs funded by federal trust funds, like Social Security and Medicare, usually keep paying on time. But new applications or replacing lost cards can be delayed if federal workers are furloughed.
In addition to Medicare, other federal programs like Medicaid and Social Security benefits are not heavily impacted. Social Security, VA, and other benefits will continue, though there could be some delay in processing applications.
What happens during a shutdown
Many government employees are sent home during a shutdown but get paid retroactively once it ends, according to The Brookings Institution, a nonpartisan public policy organization.
Essential workers, such as law enforcement or air traffic controllers, keep working but are not paid until Congress approves a budget.
Programs like Social Security and Medicare keep paying because their funding does not rely on annual approval, though some services, including Social Security offices, may be limited.
Shutdowns can also cause delays in passport applications, small business loans, food inspections, and national park access, creating widespread inconveniences.
Medicaid during a shutdown
Medicaid benefits and coverage continue during a government shutdown because the program is funded through mandatory appropriations. However, some administrative tasks may slow down.
This can also mean delays in processing payments, fewer staff available for customer service, and longer wait times for those who need assistance. Healthcare providers might also face delays in getting paid, even though recipients’ benefits remain active.
Recent data indicate that Black Americans are disproportionately represented in Medicaid, comprising about 20 percent of recipients, despite constituting only 13.6 percent of the overall U.S. population, according to health advocacy groups.
This higher reliance is linked to factors like higher unemployment rates and lower access to employer-sponsored insurance. In addition, during the COVID-19 “unwinding” period for Medicaid, which eliminated coverage for some people, Black and Hispanic adults were twice as likely as white adults to lose Medicaid coverage due to procedural issues.
Unemployment benefits and other services
Fortunately, many state programs, such as unemployment benefit checks, generally continue to be distributed to unemployed individuals during a government shutdown since they are administered by states, not the federal government.
However, an extended government shutdown can lead to delays in processing payments, new applications, and some furloughed workers may need to repay benefits if they later receive back pay, according to USAFacts, a platform that provides government data.
Other sources note that federal workers who are required to work without pay are not considered unemployed, and therefore, do not qualify for unemployment benefits.
As for mail services, people will continue to get their mail. The U.S. Postal Service continues to provide mail delivery and service because “USPS is primarily self-funded and doesn’t depend on the appropriations process to continue running as usual,” NPR reported.
