The Price Of Slashing Social Security’s Staff

Despite President Donald Trump’s repeated promises that “we’re not touching Social Security, other than to make it more efficient,” it appears his administration is planning deep cuts in the program’s administration. And that inevitably will mean trouble for those receiving or applying for benefits.

By slashing staff and tinkering with its internal computer systems, the Trump Administration is likely to make Social Security less efficient, not more. And these steps may make it much harder for applicants to receive the benefits they deserve in a timely way. Thus, Trump effectively will be cutting benefits, at least for some.

Remaking The SSA

Trump has taken several steps to remake the Social Security Administration.

He named Leland Dudek to replace a previous acting commissioner who resigned in a dispute over how much access Elon Musk’s Department of Government Efficiency could have to the agency’s computer systems, which contain highly sensitive information about nearly every American.

Dudek, a former mid-level SSA staffer who reportedly was being investigated for leaking information to DOGE before his appointment, says he has begun restructuring the agency to focus on preventing fraud. Among his changes: Eliminating much of the agency’s research program and closing offices where people go for help.

At least 10 field offices will be shuttered. At least five of eight regional commissioners have said they are leaving.

And, according to some published reports, Dudek has ordered his staff to develop a plan to fire half of SSA’s 57,000 employees. Other reports suggest the cuts would be less severe, perhaps about 7,000 workers. No matter how many are cut, at least some of these staffers assist applicants or beneficiaries navigate the often-complex system or process applications. At the very least, cutting them will mean slower service.

A widespread purge also could affect those who maintain the computer systems that make sure Social Security benefits payments arrive on time and in the right amount. Even if they are not fired, many may leave for more secure positions since it is easy for computer engineers to find work elsewhere.

Claims Of Fraud

Trump and Musk have justified staffing cuts by claiming massive Social Security fraud. They have presented no evidence of widespread fraud, but even if they did, it is hard to see how slashing SSA staff could help reduce it.

Musk alleged that more than 1 million people aged 150 and older were collecting benefits. Although this claim is entirely untrue, Trump since has magnified it by saying that millions of ineligible people are fraudulently receiving benefits.

In reality, the SSA Inspector General estimates that all Social Security improper payments represent less than 1 percent of total benefits. And many of those may be errors, not fraud.

To understand the consequences of deep cuts to SSA operations, keep in mind what Social Security does. Most know it supports people in old age and their survivors. But it also provides financial assistance to people with disabilities, who may receive disability insurance (SSDI) and, in some cases, Supplemental Security Income (SSI). In 2023, the agency received about 7 million old age and survivor claims, about 2 million disability claims, and about 1.6 million SSI claims.

Who Will Suffer The Most?

Those with disabilities may suffer the most from deep agency staff cuts.

Processing old age and survivor claims is relatively straight-forward and most people can apply online. But some older adults are unable to manage an online application. Others may need to visit an office to get answers to difficult questions.

Applying for SSI and SSDI is much more complicated and takes significant work by Social Security staff.

Disability insurance starts with an in-person application process, followed by a review by a doctor, a complex benefits calculation, and, if a claim is denied, a review. Some applicants may be eligible for programs that help them return to work, which require additional SSA staff time.

People can apply online for SSI but they still must go through a complex multi-step approval process that also requires substantial staff work.

Already Short-Staffed

My Urban Institute colleagues Jack Smalligan and Adriana Vance report that Social Security already has a backlog of 2 million disability claims. They report it takes an average of 240 days to get a claim processed, twice the time it took in 2019. In states such as Georgia and South Carolina, it takes more than a year.

One reason for the extra time: The IRS has about 57,000 full time employees, down from 63,000 a decade ago. Only about 10 percent are at headquarters (which is in Baltimore, by the way, not in Washington). The vast majority work in the agency’s 10 regional offices, 51 area offices, and more than 1,200 field offices.

Social Security is not the only federal agency slashing staff who provide direct services to Americans. The Washington Post reported the Trump administration plans to close more than 110 IRS taxpayer assistance centers. Earlier, the White House ordered the agency to fire 7,000 staffers, many of whom were helping taxpayers with their returns.

It is not clear how many SSA’s staff will be cut. And reductions to Social Security operations surely will get pushback from many members of Congress, even some Republicans. But the real victims to cuts to an already short-staffed Social Security Administration inevitably will be those who rely on its benefits.