Social Security Could Collapse Entirely Under Trump, Former Chief Warns

The former Social Security commissioner has warned that Department of Government Efficiency (DOGE) actions at the federal agency could lead to the "collapse of the entire system" that pays benefits to 70 million Americans.

Newsweek has contacted the Social Security Administration (SSA) for comment via email outside of regular working hours.

Why It Matters

DOGE, under the helm of Donald Trump adviser and tech billionaire Elon Musk, began working at the SSA in February, shortly after the Trump administration entered the White House.

Several DOGE mandated changes have taken place, including staffing being cut from 57,000 down to 50,000, closure of some regional offices, and changes to customer services.

What To Know

In conversation with Democracy Now's Amy Goodman, Biden-era commissioner Martin O'Malley said that DOGE cutbacks at the agency could "cascade into a collapse" of the entire Social Security system.

He said that jobs cuts—first announced by the agency in late February—have resulted in "50 percent reduction in the people that keep the IT systems going."

In a press release issued on February 27, the SSA confirmed that it would be undertaking workforce reductions through voluntary early retirement for those over 50 years of age who meet certain service requirements, and resignation for other staff members. Employees who take either of these options would be eligible for voluntary separation incentive payments.

The SSA said the "massive reorganizations" would lead to "abolishment of organizations and positions, directed reassignments, and reductions in staffing."

But O'Malley believes these cuts are to blame for issues plaguing the agency. In recent weeks, there have been reports of SSA website crashes, long waits for phone and in-person services, as well as some recipients being incorrectly declared as dead.

"You're seeing...outages in some of the customer-facing aspects of it," O'Malley said. "Those outages are going to become more regular, rather than intermittent. They're going to happen for longer durations."

"Ultimately, you're going to see that cascade into a collapse of the entire system and an interruption for some time of benefits," he continued. "I don't see—with the path that they're on, I believe they've taken probably 90 percent of the actions necessary to accomplish that aim."

O'Malley has made the same warning on numerous occasions. He told CNBC in March that such a collapse could happen "within the next 30 to 90 days."

He also called for legislative action and public pressure, warning that any interruption to payments could lead to political backlash.

"I think many people throughout the country are going to start bringing a lot of heat to members of Congress who have been facilitating, supporting, aiding and abetting the breaking of their Social Security and the interruption of benefits that they work their whole lives to earn," O'Malley said.

What People Are Saying

In a February 28 press release regarding staffing cuts, the SSA said: "These steps prioritize customer service by streamlining redundant layers of management, reducing non-mission critical work, and potential reassignment of employees to customer service positions. Also supporting this priority is looking for efficiencies and other opportunities to reduce costs across all spending categories, including information technology and contractor spending. SSA is committed to ensure this plan has a positive effect on the delivery of Social Security services."

Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "From a customer service standpoint, it does appear the Social Security Administration is feeling pressure at the moment, as layoffs have meant more work to do for a smaller staff of employees. The distribution of benefits has yet to see any negative effects, but with other aspects of the administration falling behind, it's easy to see why there are concerns future payments could be delayed....Few Americans will tolerate missed payments or slower customer service for a program they paid into for decades."

What Happens Next

No official changes to benefit distributions—which take place monthly—have occurred.