The second opening of President Donald Trump, and after social security, when its long -standing “third rail” of American politics – is eliminating every federal agency – chaos.
During the election campaign, Trump promised that he would not try to reduce the benefits of qualified recipients, and the White House reaffirmed that a press release on March 11 said: “The Trump administration will not reduce social security, medical or medical benefits.” And so far, it has maintained the commitment to relinquish the level of benefit.
But in the early weeks of the administration, the rules have already been announced and the staff kitbacks have already been announced that can affect the service level, especially to the weakest applicants and beneficiaries of the program. This has come when the US record -making harmony is hitting the traditional retirement age, which is a four -year -old bubble of late Baby Boomers, known as “Peak 65”.
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Meanwhile, rhetoric within the administration has increased. In an interview with Podcast on February 28, “Special Government Employees”, the so -called department government performance, or the Dodge in -charge, said billionaire Elon Musk. In his recent address to the Congress, Trump claimed that his administration was “getting” shocking and possible fraud “in social protection.
Social Security The only largest line item in the national budget. In 2024, the program cost $ 1.5 trillion. In September 2024, 51.5 million retired workers received an average of $ 1,922. But this program works more than retired. Also in September 2024, the recipients include:
According to the AARP, 40 % of the old Americans rely on social security for more than half of their family income, and 14 % of them rely on the program for 90 % or more of their income.
Serious warnings about the future of social protection are increasing, and SSA Commissioner – Martin Omala told MSNBC by November last November that the current administration’s actions could lead to “eliminating the system”. There are five things to look at here as the new administration seeks to trim the cost of the social security program.
Staff kitbacks
While Trump took powerSocial Security Administration (SSA) had 57,000 employees. On February 28, the SSA announced that it aims to reduce the head account by up to 50,000. Even before deductions, social security is low in 50-year-old staff-at a time when retired ranks are increasing at record speed, and people are usually alive for a long time.
According to SSA data, for comparisons, in 1995, 62,504 employees of the SSA and 43.4 million beneficiaries. This is the proportion of about 694 beneficiaries per employee. If we count 68.5 million, counting 2024 on the new SSA staff’s new target of 2024, the proportion is almost doubled from 1,369 to 1.
Of course, the Internet is since 1995, and many functions can be performed online, including Address and change in phone numberAccess to the letter of the Benefit Verification, and directly submit or replace it. However, not all elders have access to the Internet: Pew Research Center estimates that 10 % of Americans are not internet users of 65 or older. Overall, millions of beneficiaries still rely on one -on -one assistance, especially with more complex questions. According to the AARP, the average processing time for claims of disability has doubled for four to eight months, in the last five to eight months.
The phone service changes
Trump’s Social Security Acting Commissioner Lee Dodak has changed two important processes, which the SSA says is to counter fraud and identity theft, but it is likely that many new applicants and current beneficiaries, especially limited mobility, are also complicated.
On March 12, the SSA announced that it would not follow the changes in direct submission of the phone, saying, “About 40 percent of the direct deposit of social security is associated with someone who has been called directly to the SSA to change the deposit bank information.” Changes should now be made online (with two elements verification) or at a local Social Security Office.
On March 18, the SSA announced that it was taking steps to implement the “strong identity verification procedure”, called “Internet ID Proof” in the internal memo of the Deputy Commissioner Doris Diaz, the acting deputy commissioner for operations for the SSA. Under the change, those trying to apply for the benefits of retirement or disability will need to first confirm their identity online. People who are unable to do so will need to visit a field office.
In his memo, the first time the newsletter is popular. Info reported March 17, Diaz estimated that the latter changes would result in “about 75 75,000-85,000 additional visitors to field offices” for field offices, and would offer “growing challenges for the weak population.” At the same time, according to the memo, it would result in a decrease in the risk of fraud and reduced payments. “
Field Office sheep
One significant change in the social security policy took place in December, before Trump took over: In an attempt to reduce the waiting hours, the field offices needed appointments instead of a visit. A December blog post by the SSA states that the drop these visits will still be adjusted, but most of the language on the SSA site indicates that the offices “need to be personally appointments for services.”
Personal appointment, someone has to call on the Central Social Security Line (1-800-772-1213)-and phone hold hours are usually two hours or more. According to online sources, the appointment dates are usually a month or more. And the aforementioned phone policy has an impact before changes.
There are also conflicting reports about the possible closure of public facial offices within the Trump administration. The Associated Press combes through a list of canceled official leases listed on the DOGE site, and this year, 24 of them have identified 47 SSA offices designed for closure.
When contacted, the SSA Press Office provided a list of 64 “soft leases” for cancellation. There are no public facial offices. Of these, all are listed as small “permanent remote sites” that are specific to hearings. The SSA says most of the hearings are now held from afar and does not require hearing rooms (usually placed inside the field office).
The lists provided by Dodge and SSA were provided by Overlep but are not the same. According to the SSA Press Office, today there are “about 1,200 field offices”.
Changes to excessive payment policy
Sometimes, social protection mistakes the recipients as much as possible, and the agency needs the law to collect any excessive payment funds. To do this, once excessive payment is identified, the SSA has historically stopped checking 100 % of the future benefits until the higher salary money is recovered – it means that the beneficiaries can see all the monthly checks.
President Joe Biden has reduced the recovery rate by 10 %, so that over time more payments can be put into toes. Under Davidak, 100 % recovery is in force until March 27. The SSA says it will work to adjust to those who have difficulty paying, but the beneficiary will have to call or go to an office to make a case.
A 2024 report by the Inspector General’s Social Security Administration Office estimates that in FY 2015, “inappropriate payments” from 2022 to 2022 were $ 72 billion, which represents less than 1 % of all the benefits paid during that period. The SSA estimates that changes in policy will help them to recover $ 7 billion annually.
The program’s long -term operation
The long -term funding of social security is not a problem created by Trump, but one of his policy suggestions can increase it. Social Security is a program in which existing workers pay the nominated payroll taxes to write to existing retirees under benefits. Due to our elderly population, however, there is a growing imbalance between the number of workers and the number of retirees. The proportion of workers covered for current beneficiaries has fallen in half since 1960.
Since 2010, the money coming to social security through the Payroll Tax has been reduced to paying the benefits. In 2023, the decline was $ 41 billion, and was paid by two trust funds, which were established in 1940 and 1957, respectively, when workers lost a large number of retired. These trust funds are likely to dry in 2035 unless changes in advancing the system. If the trust funds are eliminated, social security can only pay 83 % of the scheduled benefits.
Material measures to remove the funding gap may include increasing retirement age, increasing payroll tax, or eliminating CAP on social security payroll tax paid in a year. The full age of retirement In 1983, by the Congress Act – gradually increased from 65 to the current 67. No such suggestions are on the table by the current administration.
However, Trump in a recent speech from Congress in his campaign and promised once again that he would end Income tax on social security benefits. Almost half of the recipients currently pay taxes on a part of their benefits, and if Trump succeeds, they will see their overall tax bill reducing them. The move will help to damage systematic issues, however, the tax revenue (which was a total of $ 51 billion in 2023) has been returned to pay the benefits.
The Warton School of the University of Pennsylvania estimates in a February report that eliminating taxes on social security benefits will lead to two years from the life of trust funds, which will estimate the date of the expected decline by December 2034, and will increase the debt by 2054 by 2054.
(Photo Andrew Harnic/Getty Images)
