Does a Government Shutdown Affect VA Disability Pay?

January 2024 update: The federal government is again facing the threat of a shutdown that would affect many departments including the VA.

Congress has until Jan. 19 to approve funding for the departments of Veterans Affairs, Housing and Urban Development, Transportation and Energy, and Agriculture.

Though congressional leaders have proposed a continuing resolution to extend funding into March, some Republican lawmakers say they object to another short-term solution.

The remaining U.S. government departments, including the Department of Defense, will face similar issues Feb. 2, which is the next deadline.

This all began when Congress failed to reach an agreement on spending bills for the 2023-24 fiscal year in September and passed a last-minute funding deal. 

 In November, Congress faced yet another deadline to avert a government shutdown. The threat of a shutdown ended on Nov. 15 when Congress again passed a continuing resolution.

What happens to my VA benefits if the government shuts down?

In the event of a government shutdown, disability payments, pensions, and medical care would continue under the VA, as would other VA-sponsored benefits like education and housing assistance. 

Although a shutdown would likely furlough some of the VA’s nearly 450,000 workers and close VA regional offices, VA Secretary Denis McDonough said in Sept. 2023 that veterans would be largely unaffected by the closure.

“In the case of a shutdown, there would be no impact on veteran health care,” said McDonough. “Burials would continue at VA national cemeteries. VA would continue to process and deliver benefits to veterans, including compensation, pension, education, and housing benefits, and the board would continue to process appeals.”

A shutdown would, however, impact many of the VA’s public-facing services, such as career counseling, transition assistance for veterans leaving military service, and grounds maintenance of VA cemeteries. Cases before the Court of Appeals for Veterans Claims (CAVC) and other courts would also cease in a shutdown.

In the event of a government shutdown, federal agencies identify “essential” jobs, which are exempt from furloughs. Because of the VA’s duty to administer medical care and disability payments, most of the department’s employees fall into this essential category. During the most recent shutdown in 2018, 96% of VA employees continued working, compared to 5% of Department of Education employees, and 50% of Health and Human Services workers. 

It is still not fully clear how many VA employees would be deemed essential and continue working in a 2023-24 government shutdown and how this would affect new claims or claims currently being adjudicated or appealed.

There are still concerns about the effect a closure could have on some of the VA’s processes. A federal report released after a 16-day shutdown in 2013 revealed that “weekly progress in reducing a backlog of veterans’ disability claims” was temporarily stalled. The same report states that certain veteran resources, including the education call center, hotlines, vocational rehabilitation, and educational counseling services were closed.

“We continue to closely monitor this situation … and hope it gets resolved,” McDonough said.

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