New leadership at the Social Security Administration, which is affiliated with the Trump administration’s so-called Department of Government Efficiency, has implemented swift changes.
Many experts believe Americans will notice a difference when they seek assistance from the agency following staff cuts, regional office closures, and new service policies.
The Social Security Administration is currently led by acting commissioner Lee Dudek, who took over in February after former acting commissioner Michelle King resigned due to DOGE privacy concerns.
Dudek had previously stated that he had been placed on administrative leave for cooperating with DOGE, according to reports.
As a temporary leader, Dudek is not required to report to Congress.
“When you are a confirmed commissioner, you get called up to the Hill to testify on various issues that are operating for the agency,” Jason Fichtner, a former Social Security Administration executive, said during a National Academy of Social Insurance panel last week.
“It’s a check and balance that we currently don’t have,” Fichtner explained.
As DOGE’s actions have upended the status quo at the Social Security Administration, former agency leaders, retirement experts, and Democratic lawmakers have expressed concerns about the new policies.
Meanwhile, Republicans in Congress praised DOGE last week for improving the agency’s efficiency since President Donald Trump took office.
The Social Security Administration did not respond to CNBC’s request for comment by press time.
‘Economic security of millions of Americans is at stake’
Last week, the National Academy of Social Insurance, a non-profit, nonpartisan organization, issued a statement signed by recipients of its award named in honor of former Social Security Administration Commissioner Robert M. Ball, who held the position from 1962 to 1973.
“The economic security of millions of Americans is at stake,” the signees wrote of the “major, destabilizing changes” that the Social Security Administration has recently implemented.
The statement was signed by former acting Social Security Administration commissioner Kilolo Kijakazi, former Treasury Secretary Jacob Lew, and former Social Security Administration chief actuary Stephen Goss.
The statement lists “unprecedented actions” taken recently by the Social Security Administration, including:
- staff reductions of about 7,000 of the agency’s 57,000 employees while the agency already has an employee shortage and hiring freeze;
- the closure of 10 field offices, which may limit access to benefits;
- a reorganized leadership structure that will have just five deputy commissioners, who will now be political appointees;
- the closure of the Office of Civil Rights and Office of Transformation in an effort to cut costs; and
- the termination of research focused on how to improve Social Security, both from administrative and legislative standpoints.
“Getting benefits to the currently and newly eligible, and accurately determining how much those benefits should be, requires the work of current SSA staff and more,” according to the NASI declaration.
Among those most vulnerable to longer wait times for benefits are the 2 million disability benefit applicants who are currently awaiting decision. According to the statement, approximately 10 million people have died in recent years while waiting for disability benefits.
The Social Security Administration’s customer service crisis, which included a record initial disability backlog and customer service wait times, existed prior to DOGE, House Ways and Means Committee Chairman Jason Smith, R-Mo., stated during a committee hearing on March 12.
The Trump administration has stated that the president “will always protect” Social Security and will not reduce benefits.
“Any American receiving Social Security benefits will continue to receive them,” White House Press Secretary Karoline Leavitt said via email Monday in response to the NASI statement. “The sole mission of DOGE is to identify waste, fraud, and abuse only.”
Confirmation process ‘needs to move along quickly’
Trump has nominated Frank Bisignano, CEO of Fiserv, a payments and financial technology company, to serve as the agency’s commissioner.
Bisignano’s Senate confirmation hearing is expected to take place in the next few weeks.
Former Social Security Administration Commissioner Michael Astrue, who led the agency from 2007 to 2013, said last week at a National Academy of Social Insurance panel that, while he doesn’t know Bisignano, “he can’t possibly be worse than what we have right now.”
While the confirmation process has traditionally been slow, Astrue believes it is better to move quickly and find a suitable leader for the agency.
“The process needs to move along quickly,” Astrue stated.
When Bisignano appears before the Senate, he will face “a lot of questions in the confirmation process, beginning with, what did you know and when did you know it?” Former Social Security Administration Commissioner Martin O’Malley, who led the agency from 2023 to 2024, spoke at the NASI panel.
Senators may want to know if Bisignano “approved and blessed” changes made following his nomination, such as staff reductions, office closures, and regional headquarters closures, according to O’Malley.
Last week, Democratic Senators Elizabeth Warren of Massachusetts and Ron Wyden of Oregon wrote to Bisignano, emphasizing that he will be held accountable for any benefit interruptions caused by the agency’s sweeping changes.
They also asked him about DOGE’s access to sensitive data, further staff cuts, and other potential future plans for the agency.
Bisignano was not available for comment at press time.
Smith: Seniors ‘already seeing the benefit’
The Social Security Fairness Act, signed by President Joe Biden on January 5, ensures that more than 3.2 million people eligible for public pensions receive increased Social Security checks.
In addition, affected beneficiaries will receive payments dating back to January 2024.
The Social Security Administration estimated in January that sending those back payments would take 1,000 work hours, with much of it done manually on a case-by-case basis, House Ways and Means Committee Chairman Smith said during a March 12 committee hearing.
According to Smith, the outlook has changed under Trump’s leadership.
“Seniors are already seeing the benefit of doing things differently,” according to Smith.
He said the agency had already sent more than 71% of all back payments to affected beneficiaries.
“The Trump administration’s embrace of automation and technology has made a night and day difference for those affected seniors,” Smith told CNN.
“This is how the agency should work,” he replied.
