SSA budget cuts threaten millions’ benefits

Emily Lauderdale
budget cuts
budget cuts

The Social Security Administration (SSA) is facing significant budget cuts, resulting in thousands of job losses and office closures nationwide. This downsizing is threatening the livelihoods of millions of Americans who depend on Social Security retirement and disability benefits. In January 2025, over 64 million Americans received benefits from the SSA.

However, the agency, which ensures these benefits are delivered, is on the brink, putting beneficiaries at risk of dangerous disruptions and delays. The SSA recently announced a 12 percent reduction in staffing and the closure of numerous offices across the country. Without necessary staff and infrastructure, Social Security and disability checks could be delayed or missed, putting millions of Americans at dire risk.

More than 7 million Americans aged 65 and older depend on Social Security for at least 90 percent of their income. For many seniors, even a few days’ delay in receiving benefits can threaten their ability to pay rent and buy food. Disabled Americans and their families would face similar hardships.

Millions of disabled individuals under 65 rely on benefits administered by the SSA through Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). A missed or late payment could result in missed rent payments or lack of food on the table. There is also concern that administrative cuts may foreshadow direct cuts to benefits.

Ssa budget cuts jeopardize livelihoods

The Republican Study Committee has long sought to cut Social Security benefits, and House Republicans have proposed reducing benefits for some disabled children. The already challenging process of obtaining SSI and SSDI benefits will become even more burdensome with reduced staffing.

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Field office closures have been shown to decrease the number of people receiving disability benefits in those areas, cutting families off from vital supports. The cuts will also degrade customer service for the nearly 50 million Americans who receive retirement benefits. With fewer staff to handle inquiries and process claims, new retirement claimants could face delays in receiving their benefits.

Additionally, the SSA’s toll-free number, which receives tens of millions of calls each year, will experience even longer wait times, making it harder for people to get assistance or information. Democratic Senators Elizabeth Warren and Ron Wyden are warning Frank Bisignano, the nominee to lead the Social Security Administration, that he will be held responsible if the proposed staff cuts interfere with the agency’s ability to process and disburse benefit checks. They wrote in a letter to Bisignano, “As President Trump’s nominee for SSA Commissioner, you will be responsible if the Trump Administration’s attacks on the program result in failures or delays in getting Americans their Social Security checks — in other words, a backdoor cut to benefits.

The White House has stated that the Trump Administration will not cut Social Security, Medicare, or Medicaid benefits.

President Trump has vowed to target “waste, fraud, and abuse” in entitlement programs. The U.S. Government Accountability Office estimates that taxpayers lose as much as $521 billion annually due to fraud, which heavily impacts entitlement programs such as Medicare and Medicaid. In summary, the cuts to the Social Security Administration will have dire consequences for millions of Americans who rely on retirement and disability benefits.

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Urgent action is needed to prevent further harm and ensure that the SSA can continue to serve the public effectively.

Emily is a news contributor and writer for SelfEmployed. She writes on what's going on in the business world and tips for how to get ahead.