The Trump administration’s Department of Government Efficiency (DOGE) has implemented several rapid changes at the Social Security Administration (SSA), sparking concerns about potential disruptions to beneficiary services.
These modifications have raised alarms among experts who fear that the streamlining efforts could negatively affect the continuity of benefits.
Potential Risks to Social Security Benefits
Jason Fichtner, a former deputy commissioner of the Social Security Administration under President George W. Bush, expressed his concerns, noting that these changes may disrupt benefit access for many Americans.
Recent developments, such as staff cuts and regional office closures, have drawn attention to the possible adverse impact on services like the SSA’s website, which has encountered glitches, its 800 number, which is often plagued by long wait times, and its field offices, which are frequently overcrowded.
These challenges may particularly affect Americans with disabilities, many of whom face delays that could be life-threatening. Fichtner and Kathleen Romig, a former SSA senior official, emphasized that the SSA is facing a crisis that jeopardizes benefits for vulnerable citizens.
Staff Reductions and Office Closures
Under Trump’s administration, the SSA has made significant cuts, including eliminating 7,000 positions and shutting down six regional offices.
These actions, Fichtner and Romig argue, will lead to even longer wait times for the services Americans depend on. For those seeking disability benefits, delays in processing could have dire consequences.
Fichtner highlighted the critical role of the SSA, stressing that such sweeping changes could impede the agency’s ability to provide timely assistance to those in need.
The Impact of COBOL System Changes
Fichtner raised concerns over the SSA’s plan to rapidly overhaul its systems, specifically moving millions of lines of COBOL code, the programming language used by the SSA.
He argued that this fast-paced transition could lead to system failures, causing further disruption to benefits for current recipients. Typically, such major updates take years to implement and require careful testing to avoid errors.
Fichtner pointed out that system upgrades should proceed with caution and should begin with small-scale trials before being expanded nationally. His warning emphasizes that upgrading the SSA’s code requires a careful understanding of the system’s complexity and should not be rushed.
The White House and SSA Response
In response to these concerns, both the White House and the Social Security Administration have denied the validity of reports claiming the changes will disrupt services.
A spokesperson from the SSA responded to inquiries by stating that the reports about system updates and staff reductions were inaccurate.
Focusing on Larger Issues
While efforts to root out fraud at the SSA are underway, some experts, such as Romina Boccia from the Cato Institute, believe that the focus on administrative changes is misguided.
According to Boccia, addressing fraud on a small scale may divert attention from the larger issue—the looming depletion of trust funds that provide financial support for Social Security benefits.
The trust fund depletion, projected for 2033, poses a greater threat to the sustainability of the Social Security program.
Without significant legislative intervention, the program may only be able to pay out 83% of benefits by 2035, and as low as 79% of benefits by 2033 for retirement benefits alone.
Financial Outlook for Social Security
The 2024 Social Security Trustees Report projects that the combined retirement and disability trust funds could be depleted by 2035.
At that point, the program would only be able to pay 83% of benefits, unless Congress acts. The retirement trust fund, however, may be depleted as early as 2033, leading to an even steeper reduction in payouts.
SSA’s Administrative Budget
Experts like Charles Blahous, a former public trustee for Social Security and Medicare, argue that focusing on the SSA’s administrative budget—which accounts for less than 1% of total expenditures—is not a productive approach to improving the program’s efficiency.
Blahous suggests that the real solutions to the Social Security crisis lie in larger reforms to the program’s trust funds, not in small-scale administrative changes.
The changes at the Social Security Administration under the Trump administration have raised significant concerns about the future of benefits access.
While the intent may be to modernize the system and reduce fraud, experts argue that the focus should be on long-term sustainability of the program, especially in light of the impending trust fund depletion. Major reforms are necessary to secure the future of Social Security benefits for millions of Americans.
FAQs
How will the staff cuts at the SSA affect services?
The staff reductions may result in longer wait times and delayed benefits processing, especially for those with disabilities who rely on timely assistance.
What is COBOL, and why is its update a concern?
COBOL is the programming language used by the SSA to process benefits. Experts worry that rushing the COBOL code transition could lead to system failures, impacting the delivery of benefits.
When will Social Security trust funds be depleted?
According to the 2024 SSA projections, the combined trust funds could be depleted by 2035, with the retirement trust fund possibly running out as early as 2033.
Why is the focus on administrative changes at the SSA problematic?
Some experts believe that addressing administrative issues like fraud may distract from the more urgent need for legislative reforms to ensure the program’s financial stability.