Could Trump's DOGE Cuts Delay Social Security Payments?
Former Social Security officials and left-leaning think tanks are warning that the Trump administration's personnel cuts at the Social Security Administration threaten millions of Americans' retirement benefits — a claim that the White House firmly denies.
The Social Security Administration claims that its workforce reductions mainly involve employees "who do not directly provide mission critical services"; however, critics of the staffing reductions argue they could delay the processing of new applications for benefits. And some warn that worse could happen.
In a recent CNBC interview, former Social Security Administration Commissioner Martin O'Malley predicted a "system collapse and an interruption of benefits" that he warned would come "within the next 30 to 90 days." He went so far as to encourage Americans to "start saving now" to prepare. O'Malley has appeared on various networks in recent weeks, attacking the involvement of the Department of Government Efficiency (DOGE) at the agency.
However, President Donald Trump has promised that his administration won't touch Social Security, aside from removing people he claims are unrightfully receiving benefits (specifically, undocumented immigrants and deceased people).
What is DOGE doing at the Social Security Administration?
DOGE reportedly has 10 staffers looking at Social Security. Trump says they've been "searching" for dead people receiving benefits, trying to root out fraud that he alleges is widespread despite fact checks that have ruled those claims to be highly exaggerated.
Two offices of the Social Security Administration have also been closed: the Office of Civil Rights and Equal Opportunity and the Office of Transformation. In addition, the agency said it would close six of 10 regional offices.
The Social Security Administration did not respond to Money's request for comment. However, in public statements, the agency has disputed claims about the size of workforce cuts, while also denying media reports of plans to reduce telephone services. Last month, the agency announced a staffing target of 50,000, which would be a 12% decrease from the current employee count (57,000) — much less than a 50% cut that was floated by an anonymous source in an Associated Press article.
In a New York Times report Monday, the agency said it is "identifying efficiencies and reducing costs, with a renewed focus on mission critical work," adding that it is "committed to ensuring Americans get the help they need."
More than 68 million Americans receive Social Security benefits, a number that's grown as millions of Baby Boomers have reached full retirement age. Those benefits are critical to the financial well-being of many retirees: Survey data shows that more than 40% of Americans 65 and older couldn't meet their basic needs without Social Security benefits.
Will DOGE cuts delay Social Security benefits?
Depending on who you ask, you'll hear something different in response to this question — and the answer likely depends on how they view Tesla CEO Elon Musk's newly created department.
A representative of the American Federation of Government Employees Local 1395, which represents Social Security employees in Illinois told CNBC that the government's systems for paying benefits are mostly automated, meaning they wouldn't be impacted by headcount reductions. However, she predicted that the staff cuts will have severe consequences, mentioning the possibility of delayed processing for new Social Security applicants.
The Center for American Progress, a left-leaning think tank, issued a report this week arguing that the closure of regional offices will lead to fewer disabled Americans accessing benefits, citing previous academic research. Already, more than 1 million Americans have pending disability claims, and staff reductions could lead to a longer backlog, according to the think tank. The report also said that older Americans could experience delays when claiming benefits.
"When there are not enough staff to process claims, new retirement claimants could see delays in getting their benefits started," the report said.
Given the popularity of the Social Security program and the number of people who depend on it, it's safe to say that any delays to benefits would not be taken well by the public. The premise of DOGE is that agencies such as the Social Security Administration are "bloated" and can provide the necessary functions with fewer staff — whether or not that's possible remains to be seen.
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