President Trump’s Key Short-Term Target Areas for Social Security - Bankrate.com
Social Security is getting its fair share of attention as the Department of Government Efficiency (DOGE) continues toward its goal of cutting federal spending, specifically focusing on identifying and eliminating fraud, waste, and abuse in government programs. While this attention is causing quite a bit of angst among seniors already wary of Social Security’s rapidly evolving insolvency problem, hardly a day goes by that we don’t see a new airing of concern and apprehensions about what lies ahead for this venerable senior support system.
So, to put a fine point on what might happen in the near term, Bankrate.com Investing Reporter Rachel Christian offers a recap of three of the President’s “big plans” for Social Security along with an analysis of how they might impact current and future beneficiaries. First, and the one that seems to garner the most attention in the media, is the pledge of no tax on tips, overtime, or Social Security benefits. Ms. Christian’s post focuses on the benefit taxation process as it now exists, noting that this portion alone represented about 3.8% of total program revenue in 2023 and that no details have been provided regarding how to compensate for the loss of this portion of the revenue stream ($50.7 billion in 2023).
The rooting out of fraud, waste, and abuse is next in the article’s scope, discussing the much-publicized allegations of “alleged millions of deceased beneficiaries still collecting Social Security checks.” Ms. Christian reports on the Social Security Administration’s (SSA) explanation of the situation and their position that the breadth of the problem is overstated such that data correction efforts “would have limited or no benefit to the administration of SSA programs,” since only “only a tiny fraction of these individuals, about 2 percent, are still receiving benefits.”
The final point in the argument is equally controversial…staff cuts and office closures. SSA officials have already announced plans for a 12% workforce reduction via early retirement or incentives. The reductions are expected to include total elimination of selected field offices and will likely lead to an extension of telephone wait times already under fire, according to critics. Office closings are already underway in 24 states, according to Ms. Christian’s post, which also cites SSA reports that “(a)n estimated 119,128 people visited Social Security branch locations across the country in 2023.”
The coming weeks and months will be critical milestones for Social Security, and will create a peculiar minefield for the program as the search for a permanent Commissioner continues. For a complete analysis of the three reform target areas discussed above, read Ms. Christian’s post in full here.