This holiday season, the prospect of a government shutdown might not be the festive news Americans want to hear. However, it could become a reality as early as Friday.

The risk of a shutdown increased when President-elect Donald Trump rejected a bipartisan agreement that had been reached on Wednesday to maintain government funding until mid-March. Adding to the complications, Trump has urged Congress to elevate the debt ceiling as the current suspension of the debt limit is set to conclude on January 1, 2025. A new agreement would provide the upcoming administration with the opportunity to employ “extraordinary measures” to meet financial obligations.

A significant concern for the 68 million Americans currently receiving Social Security benefits is: How will a government shutdown impact the Social Security Administration? Will they still receive their benefit checks? Here’s a comprehensive overview.

What occurs with Social Security if the government shuts down?

During a government shutdown, certain federal agencies remain operational because some of their personnel are deemed “essential.” These essential services include air traffic control, border security, law enforcement, hospital care, and the maintenance of the power grid, as highlighted by the nonpartisan Committee for a Responsible Federal Budget.

Many agencies and programs that continue functioning during a shutdown do so because their required funding is not subject to annual congressional appropriations. This includes Medicare, Medicaid, and notably, Social Security.

According to Craig Copeland, the director of wealth benefits research at the Employee Benefit Research Institute, “Social Security has dedicated funding, making it independent from the budget process. The necessary funds are available for distribution.” Therefore, recipients can expect to receive their checks.

This means that benefits for retirement, disability, and Supplemental Security Income (SSI) will continue to be paid out. Additionally, veterans’ benefits and medical care as well as food assistance under the Supplemental Nutrition Assistance Program (SNAP) will also remain unaffected.

The Social Security Administration’s plan for shutdowns

The Social Security Administration (SSA) has prepared a contingency plan for potential shutdowns. In a letter sent to the director of the Office of Management and Budget three months ago, the SSA outlined its fiscal year 2025 strategy to address a potential federal shutdown, which was initially linked to a possible shutdown in mid-September that was avoided by an agreement on September 22 (this agreement now expires on Friday).

The SSA’s plan emphasizes that it will continue activities vital to direct-service operations and those necessary for the accurate and timely payment of benefits. They will halt activities that are not essential to these operations.

This plan, endorsed by Chad Poist, the SSA’s deputy commissioner for budget, finance, and management, refers to a 1995 memorandum from the Department of Justice, confirming that government activities required for the distribution of Social Security benefits can persist during an “appropriation lapse.”

Ongoing activities at the SSA include processing benefit applications, issuing new and replacement Social Security cards, and IT work necessary for daily operations, fraud prevention, and various applications.

However, some activities may be paused during a shutdown, including benefit verifications, updates to earnings records unrelated to benefit adjudication, and IT improvements.

According to Copeland, “Some SSA staff could face furloughs during this situation because the funding methods for those services differ from the funding for benefits.” He advises anyone with appointments related to starting benefits or calculations to confirm that those appointments will still occur or to see if they need to be rescheduled. “Appointments may be impacted,” he noted.

When will December Social Security payments be issued?

Recipients with birthdays from the 21st to the 31st of the month are set to receive their checks on December 24, based on the SSA’s calendar. The January SSI payment is expected to be distributed on December 31.

Following that, checks will be released on January 3 for those who began receiving Social Security prior to May 1997. Individuals who qualify for both Social Security and SSI will receive Social Security on January 3 and SSI on January 1, according to the SSA’s 2025 calendar.

Checks will be dispatched on January 8 for those with birthdays from the 1st to the 10th, and on January 15 for those born from the 11th to the 20th.