What’s happening with Social Security payments?
Former Social Security Administration (SSA) commissioner Martin O’Malley has warned that the system is facing a potential “collapse” due to leadership and funding changes. According to O’Malley, IT outages and significant staff cuts are making benefit payments vulnerable to delays.
“I believe you will see that within the next 30 to 90 days,” O’Malley told CNBC.com, urging people to start saving in case of benefit interruptions.
Who is leading the Social Security Administration now?
Since DOGE was introduced to cut federal spending, there has been leadership upheaval at the SSA. Acting commissioner Michelle King recently resigned due to conflicts over DOGE’s access to sensitive data. Trump has nominated Fiserv CEO Frank Bisignano as the new commissioner, but he has yet to undergo Senate confirmation hearings. Meanwhile, Lee Dudek was appointed as acting commissioner but was placed on administrative leave shortly after assisting DOGE representatives.
Could Social Security office closures affect benefits?
The SSA is facing major staffing reductions and office closures. The DOGE savings web page lists 45 Social Security locations where leases will be terminated. This includes field offices and locations where disability hearings are conducted.
“If they’re closing these busy offices in highly populated areas, no office is safe, especially in rural areas,” said Rich Couture, spokesperson for the AFGE SSA General Committee, which represents 42,000 Social Security employees.
Who will be most affected by these Social Security changes?
According to Jill Hornick of the American Federation of Government Employees, individuals applying for new Social Security benefits may be the most impacted. While existing automated payments are likely to continue, new applications—such as retirement, disability, or survivor benefits—could face long delays.For instance, if a widow applies for survivor benefits, she must provide a marriage license. A Social Security employee then has to verify it. With fewer staff available, these claims could take much longer to process.
What does Congress say about the potential risks?
Lawmakers have voiced concerns about SSA’s future. Rep. John Larson (D-Conn.) called the staffing cuts a “backdoor benefit cut.”
“Laying off half of the workforce at the Social Security Administration and shutting down field offices will mean delay, disruption, and denial of benefits,” Larson said.
Union officials are pushing back against the SSA’s changes, filing lawsuits and issuing bargaining demands. However, the legal battles may take time, meaning congressional pressure and public outcry could play a critical role in reversing these actions.
Will Social Security Fairness Act payments still go through?
Despite concerns over SSA operations, the agency recently announced it will expedite payments under the Social Security Fairness Act, signed into law by President Joe Biden on January 5. The law eliminates the Windfall Elimination Provision and Government Pension Offset, which previously reduced benefits for some pension recipients.
As a result, more than 3.2 million beneficiaries will receive one-time lump-sum payments and increased monthly benefits. The SSA has committed to issuing retroactive payments starting in February, with most recipients expected to receive them by the end of March. Monthly benefit increases will begin in April.
For beneficiaries awaiting these payments, SSA advises ensuring direct deposit information and mailing addresses are up to date. Those seeking updates on their status should wait until April before contacting the agency.
What’s next for Social Security?
The fate of Social Security benefits now depends on both political pressure and public reaction. Former SSA commissioner O’Malley predicts that congressional leaders may face increasing pressure from voters demanding action to protect their benefits.
“These are earned benefits,” O’Malley said. “People have worked their whole lives for them.”
FAQs:
Will Social Security payments be delayed?
Yes, staff cuts and IT failures could cause benefit processing delays.
Who will get higher Social Security benefits?
3.2 million beneficiaries will see increases under the Social Security Fairness Act.
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