The Social Security Administration is Reducing Its Spending—Here’s How It Will Affect Your Benefits | Global News Avenue

Budget cuts to Social Security Agency (SSA) Your checks should not be affected, but they can disrupt earnings and make contact with an agency more difficult.

SSA said it will cut or avoid spending $800 million this fiscal year in line with President Donald Trump and the Department of Administration’s Efficiency (Doge). Targets significantly reduce federal spending. Some of the cuts identified by the SSA include hiring freezes, contract termination and mobile paper forms online.

Trump said he would not cut social security benefits himself, but cutting budgets could make contact with the government office more difficult. SSA announced plans to cut more than 12% of its workforce, and Doge has listed 47 local offices that have been closed.

“You drive in the (local) office and it looks like it’s open. It may be open to some people in your community, but it may not be open to you,” said Ed Weir, a former district manager of Social Security. “You might want to apply for disability benefits or pensions or survivor benefits, but in that particular office, they may have lost all Title II (Customer Success Expert).

Lee Dudek, acting SSA specialist Washington Post. Experts say these could cause institutional disruptions within the scope.

“Eventually, you’re going to see a system crash and a welfare disruption,” former Social Security Commissioner Martin O’Malley told The New York Times CNBC. “I’m sure you’ll see it in the next 30 to 90 days.”

How it will affect your interests

Will said budget cuts could prevent some beneficiaries from getting benefits in a timely manner.

As of April 2024, the initial disability determination time was eight months, with an average phone holding time close to 40 minutes, according to the Center for Budget and Policy Priorities.

“They won’t reduce pensions or survivor benefits or disability itself,” Will said. “But if you can’t get them in time, you’ll lose that month or two or three months.”

In another example, SSA recently updated a policy Therefore, if the beneficiary receives overpayment, their checks can be withheld. Will said the reduction in offices and workers could mean addressing overpayments or incorporating beneficiaries into repayment plans, which would be more difficult and take longer.

Will said the increased waiting time will particularly harm most of the income of those who rely on Social Security benefits. For those over 65 years of age, according to the latest SSA use of 2015 data, men and 15% of women rely on 90% or more of their income to rely on Social Security benefits.

“Eventually you’ll get the money, which is great for those who can float rent, mortgage, food and electricity bills in one, two or three months,” Will said.