Should the shutdown extend beyond October 15, 2025, then it could potentially affect the announcements regarding the administration of the Cost-of-Living Adjustment (COLA) for the fiscal year 2026 by the Social Security Administration (SSA).
However, though such delay will be present, it will not be permanent, for benefits or enhancement in benefits will not be part of the suspension of payments under consideration. It is necessary to investigate the particulars of such circumstances relative to how they may affect retired individuals, pensioners, and beneficiaries.
COLA Calculations Will Continue, But Announcements May Be Delayed
The calculations will be made for the COLA, delayed, perhaps, for announcing the same.
Some departments might be shut down. However, not every agency is idle; some renowned agencies like the Bureau of Labor Statistics (BLS) continue to function purposefully. Their duties consist of all services related to the production and publication of the inflation data, which is crucial for the computation of COLA.
The latest figures to be used in determining the COLA come from the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) numbers compiled in September 2025. As long as that figure is on time, there will be no interrupting the calculations for COLA.
The situation takes a turn, however, as far as the official announcement by the SSA is concerned. This was to be made on October 15, 2025, but if the shutdown is still in place, all non-essential employees at the SSA will have to be furloughed, and that is exactly when those in charge of the announcement, updating the website, or dealing with the media will be needed.
So, even if all calculations are done, it seems that the new announcement regarding the COLA will not occur until after the government is back open again.
Payments Will Not Be Affected
Meanwhile, for retirees, one big relief that may be provided by the fact that Social Security and SSI payments will not be affected during the entire shutdown.
Such payments are not dependent upon annual budgeting (appropriation) by the federal government and come from funds held in trust. Money will get into your bank account as usual, on every schedule.
However, calls into SSA offices for an appeal or record update will see some delays — this is the result of having fewer staff available at many SSA field offices and call centers.
Medicare and Other Allied Plans Will Continue
Besides the announcement of COLA, it is also important to know that plans such as Medicare, Medicaid, and SNAP (Food Assistance Program) are also looked at as “Essential Services” during a government shutdown.
Hence, they will continue as they are. Subsequently, if you are receiving any benefit under one of these programs, your medical care, health insurance, or food assistance will not ever be affected and will continue as normal.
On the other hand, if filing a new application or appealing one’s application, there may be a delay as those program offices are also running on minimum staff.
What This Means for Retired People
Now relax if this delay in announcing the COLA does happen because, under these conditions, it is still a transparent and safe process for the SSA.
Once the government is back to work, those will release the COLA numbers. This will be that number upon which Social Security checks will be increased in January 2026.
Yes, the announcement may possibly be a little late, however, an increase in the COLA surely will not; this will mean benefit amounts will be payable beginning January 2026 and will be included in the regular payment.
You will not have any extra burden of application and procedure as the SSA will automatically adjust your account.
What Would Happen If the Shutdown Prolonged?
If it happens that the government is shut down within either days or weeks, so the impact actually will not be high. But if it takes long, extending into a few months, that’s when the complications might start creeping in.
Here are the possible complexities that can ensue:
- Arrival delays of new benefit letters for 2026.
- There might be delays in updating the online accounts of SSA.
So, however long the shutdown stretches will serve to create greater administrative inconvenience, but that doesn’t change anything finance or increases through COLA.
What Is COLA and How It Works
To start with, for those who do not know what a COLA is, it is the basis upon which the government increases the payment it gives as Social Security usually once a year and according to the rate of inflation.
That means, as inflation keeps up, rose payments would be modified upwards.
On the basis of the CPI-W index released by the Bureau of Labor Statistics, the assessments on COLA are done. Almost always, that of the following year is based on the results for September, and the change takes effect in January.
Political Background and Shutdown Impact
Inability of the Congress to reach a consensus over the budget has led to a federal government shutdown in the U.S. So many departments would come to a halt in funding and lay off the non-essential workers.
There may be many shutdowns within these years, and these all have adverse effects on the economy, governmental services, and public faith.
History usually has it that payments related to essential services, such as Social Security, Medicare, and grants to military operators, do not stop during shutdown. Hence, this shutdown would not halt payments to beneficiaries, but it will halt the above processes regarding administrative policy.
Payments will face temporary disruption.
What Seniors and Beneficiaries Should Do
Don’t panic if you are a Social Security beneficiary.
- Ensure your bank account information is updated so that your checks are timely.
- Change of address or other important information should be updated as early as possible by visiting the SSA website.
- Visit their website and the ‘My Social Security’ portal frequently.
Updates regarding any COLA would be published on the SSA website right after the reopening of the government.
COLA Effect in January 2026
The SSA will announce the COLA for the year 2026 for the January payment, and this adjustment will be based on the inflation figure.
For example, if the CPI-W rate stays 3.2% through 2025, then Social Security payments may rise by an estimated 3.2% in 2026, meaning an increase of about $60 to $80 per month to an average retiree, which would lead to an increase of about $700–$900 a year.
Conclusion
Although not convenient administratively, the government shutdown really is nothing to panic about for Social Security and SSI beneficiaries.
COLA calculation will be done on time; payments will not be interrupted. Only delays in official announcement and in delivery of customer service are expected.
In other words, this temporary government problem is not affecting your retirement benefits.
The COLA raise will take place in January of 2026 and will counter inflation for millions of American senior citizens down to a constant standard.
FAQs
Q1: Will Social Security payments stop during the government shutdown?
A. No, Social Security and SSI payments will continue as usual. These benefits come from trust funds and are not dependent on federal budget appropriations.
Q2: Will the COLA 2026 announcement be delayed?
A. Yes, if the shutdown continues beyond October 15, 2025, the COLA announcement may be delayed. However, the increase will still take effect in January 2026.
Q3: Will Medicare and SNAP benefits be affected?
A. No, Medicare, Medicaid, and SNAP are considered essential services. These programs will continue to operate normally during the shutdown.
