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Home Business & Finance Economic Policies

‘Impacting people’s money’: Draconian SSA cuts creating major hardships for seniors todayheadline

April 8, 2025
in Economic Policies
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'Impacting people’s money': Draconian SSA cuts creating major hardships for seniors
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During his 2024 campaign, now-President Donald Trump insisted that cuts to Social Security were not on the table. But the U.S. Social Security Administration (SSA), established 90 years ago in 1935 as part of President Franklin Delano Roosevelt’s New Deal, is among the many federal government agencies being targeted for mass layoffs by the Trump Administration and the Elon Musk-led Department of Government Efficiency (DOGE).

Democratic ex-Maryland Gov. Martin O’Malley, who served as SSA commissioner under former President Joe Biden, is warning that the agency will have difficulty functioning in the months ahead because so many high-skill employees have been laid off.

O’Malley told CNBC, “Ultimately, you’re going to see the system collapse and an interruption of benefits. I believe you will see that within the next 30 to 90 days…. People should start saving now.”

READ MORE:The ‘Lost Boys’ of Gen Z: how Trump won the hearts of alienated young men

In an article published on April 8, Axios’ Emily Peck describes some of the problems seniors are likely to face with Social Security — including the elimination of phone service at SSA if one is applying for benefits.

“In less than one week,” Peck explains, “many Americans will no longer be able to apply for Social Security benefits over the phone, setting the stage for disruptions and upheaval for millions of seniors. Why it matters: The abrupt change, implemented at breakneck speed at White House request, increases the likelihood that some eligible people will miss out on benefits; others could simply not get them at all.… Right now, if applicants can’t use the agency’s website to apply for benefits or change their bank information, they can phone an 800 number or their local office. Starting April 14, applicants for retirement benefits and those who need to change their direct deposit information must either go online or trek to an office.”

Peck adds, “Those applying for disability, supplemental security income and Medicare can continue to do so by phone.”

According to research from the Center on Budget and Policy Priorities, many seniors can expect long drives to SSA offices.

READ MORE: Right wing unleashes attack on Amy Coney Barrett

Peck notes, “Nearly 6 million seniors live more than 46.6 miles, roundtrip, from a field office, per the analysis of agency and Census Bureau data.”

Survivors’ benefits, according to Peck, can only be made in person — not online. And Peck points out that “tech updates — DOGE-driven — are causing the agency’s website to crash more often, the Washington Post reports.”

Marcela Escobar-Alava, former SSA chief information officer, told Axios, “You are going to start impacting people’s paychecks and people’s money…. The way that they’re going about letting staff go or reducing staff is not strategic, and it’s not very well thought through.”

READ MORE: ‘The biggest Black Aunt Jemima’: Recording reveals Nevada official’s racist remarks

Read Emily Peck’s full Axios article at this link.

Tags: creatingcutsDraconianhardshipsImpactingmajormoneypeoplesSeniorsSSAtodayheadline
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