While the partial government shutdown has had the most severe impact on housing programs, other programs serving older people are feeling the effects of the shutdown as well.
Federal nutrition programs are among the government services affected by the shutdown. Congregate and home-delivered meals provided under the Older Americans Act received their appropriation on a timely basis and are fully funded. However, the Supplemental Nutrition Assistance Program (SNAP), formerly known as food stamps, is likely to run out of money at the end of February unless a new fiscal 2019 spending bill is enacted. The 4.8 million older people covered by SNAP represent 11% of the population the program serves.
Medicare and Medicaid are not subject to the annual appropriations process, and the spending bill covering the Department of Health and Human Services and the Centers for Medicare and Medicaid Services (CMS) was signed into law in September. These agencies and programs therefore have not been affected by the partial government shutdown.
However, in failing to finalize a spending bill for fiscal 2019, Congress and the President have left spending caps enacted under the Budget Control Act of 2010 in effect. Over the past several years, Congress has waived these spending caps, which call for total federal spending to be ratcheted down to levels that neither a majority of legislators nor the White House can actually support. Without a spending bill containing a waiver, the Budget Control Act caps could trigger spending sequestration across all government programs.
Medicare reimbursement, already subject to 2% sequestration, would get an additional, estimated cut of 0.1% if a spending bill with a budget caps waiver does not become law by the end of this month. This could mean a small reduction in Medicare reimbursements to providers. Sequestration also could reduce funding for CMS administrative operations; we do not have information as yet how the agency might cope with an across-the-board cut in its funding.
We continue to urge Congress and the Trump Administration to resolve the fiscal 2019 appropriations stand-off that is jeopardizing vital services for older people. For the latest on how the partial shutdown is affecting housing, read this.