Does a Government Shutdown Affect VA Disability Pay?

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

On Dec. 19, president-elect Donald Trump came out against a bipartisan spending bill meant to fund the government until March 14, and is urging Republican lawmakers to vote against it.

Congress now has two days to to come up with a compromise bill to avert a government shutdown.

If Congress fails to take action, the government will begin a partial shutdown on Dec. 21. It would be the first government shutdown since December 2018, during Trump’s first presidential term.

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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