5 Key Alerts About Social Security Under Trump: What You Need to Know!
Explore how Social Security is changing under Trump's administration, including staff cuts, policy shifts, and funding concerns. Learn how these changes could impact retirees and beneficiaries.
March 23, 2025 19:53
5 Key Alerts About Social Security Under Trump: What You Need to Know!
Since President Donald Trump's second inauguration, chaotic change has been challenging every government institution; Social Security is no exception, even if it has long been the untouchable "third rail" of American politics.
Trump’s Promise on Social Security
While running, Trump promised not to reduce benefits for qualified beneficiaries. The White House emphasized in a March 11 news release that "The Trump Administration will not cut Social Security, Medicare, or Medicaid benefits." So far, benefit levels remain unchanged.
However, policy changes and staff cuts in the first weeks of the administration could impact service levels, particularly affecting the most vulnerable applicants and users. This comes amid a surge of late baby boomers reaching retirement age, a four-year period known as "peak 65."
Social Security in the National Budget
Social Security ranks as the single largest line item in the national budget. In 2024, program expenditures totaled $1.5 trillion, with 51.5 million retirees receiving an average benefit of $1,922 in September 2024. The program also benefits:
2.6 million children and spouses of former employees
5.8 million surviving children and deceased workers' spouses
8 million eligible dependents and disabled workers
AARP reports that 40% of older Americans rely on Social Security for more than half of their family income, with 14% depending on it for 90% or more of their income.
Five Key Changes to Watch
1. Staff Cuts
When Trump took office, the Social Security Administration (SSA) employed 57,000 people. By February 28, the agency announced plans to reduce staff to 50,000. Given the rising number of retirees and longer life expectancies, this reduction could severely impact service delivery.
In 1995, SSA had 62,504 employees serving 43.4 million beneficiaries—a ratio of 694 recipients per staff member. In 2024, with 68.5 million beneficiaries and only 50,000 staff, that ratio nearly doubles to 1,369 to 1.
2. Phone Service Modifications
Two major process changes were implemented by acting Social Security Commissioner Lee Dudek to combat fraud and identity theft:
SSA no longer handles direct deposit changes over the phone. Changes must be made online or in-person using two-factor authentication.
New applicants must verify their identities online before applying for disability or retirement benefits. Those unable to do so must visit a field office, increasing foot traffic by 75,000-85,000 weekly.
3. Field Office Congestion
Since December, Social Security offices have required appointments for in-person services. Walk-ins are still accepted, but wait times for appointments can exceed a month.
The Associated Press found 47 SSA offices scheduled for closure in 2024, while SSA reported 64 "soft leases" being canceled. The closures could further limit public access to in-person services.
4. Overpayment Policy Changes
The SSA occasionally overpays recipients, requiring repayment. Previously, the Biden administration reduced recovery rates to 10%, but as of March 27, under Dudek, SSA has reinstated 100% benefit withholding for overpayments.
Less than 1% of Social Security payments from 2015-2022 were improper, totaling $72 billion. The policy change is expected to recover an additional $7 billion annually.
5. Long-Term Program Survival
Social Security's funding issues predate Trump. Payroll taxes cover current retirees, but as the worker-to-beneficiary ratio declines, funding gaps widen. In 2023, Social Security ran a $41 billion deficit, pulling from trust funds projected to be depleted by 2035. If depleted, benefits would be cut to 83% of current levels.
Trump has proposed eliminating income taxes on Social Security benefits, reducing the tax burden for half of all beneficiaries. However, this would cut two years from the trust fund’s lifespan, accelerating its depletion to 2032 and increasing federal debt by 7% by 2054, according to the Wharton School of the University of Pennsylvania.
Conclusion
While Trump has upheld his promise not to cut Social Security benefits, administrative changes and staffing cuts may significantly impact service delivery. The long-term financial sustainability of Social Security remains uncertain, with funding gaps growing and policy shifts potentially exacerbating the problem. Beneficiaries should stay informed and consider financial planning options to navigate these evolving challenges.
