Social Security Collapse: Here's why experts fear DOGE could affect these benefits

The Social Security Administration (SSA) has confirmed plans to downsize its workforce by 7,000 employees, reducing staff numbers from 57,000 to 50,000 as part of an effort to cut federal spending.

While officials have denied rumors of an even steeper 50% workforce reduction, this planned downsizing has sparked fears that it could impact the efficiency of the agency, potentially delaying benefits and increasing errors in payments.

These cuts are part of broader federal cost-cutting initiatives led by the Trump administration’s Department of Government Efficiency (DOGE), which aims to streamline agencies and eliminate waste.

However, with the SSA already operating at its lowest staffing levels in five decades, critics argue that further reductions could push the system to a breaking point.

How Will These Cuts Impact Benefit Payments?

The SSA has stated that most job reductions will result from retirements, resignations, and voluntary separation incentives. However, additional downsizing could come through reassignments and possible office closures.

By March 13, federal agencies, including the SSA, must submit their workforce reduction plans to the Office of Personnel Management (OPM) for approval. Experts warn that fewer staff could lead to significant service delays.

“It’s going to extend the amount of time that it takes for them to have their claim processed,” said Greg Senden, a paralegal analyst with nearly three decades of experience at the SSA. “It’s going to extend the amount of time that they have to wait to get benefits.”

Former SSA Commissioner Martin O’Malley has also expressed serious concerns about the potential consequences of these cuts.

“Ultimately, you’re going to see the system collapse and an interruption of benefits,” O’Malley cautioned. “I believe you will see that within the next 30 to 90 days.”

However, not all experts agree on the severity of the impact. Some suggest that the reduced workforce could increase improper payments-either overpaying or underpaying beneficiaries due to processing errors.

“With fewer staff, the Social Security Administration will have to choose between making sure all claims are processed, which may lead to more improper payments, or avoiding those errors, which could lead to processing delays,” explained Charles Blahous, a senior research strategist at George Mason University’s Mercatus Center and a former public trustee for Social Security and Medicare.

Disability benefits, which require more administrative oversight, could be particularly vulnerable to these changes, as they involve ongoing eligibility verification.

Will These Cuts Improve Social Security’s Financial Stability?

The SSA‘s workforce reduction is just one part of a larger initiative to cut costs, including a plan to consolidate its ten regional offices into four. The agency argues that this will increase efficiency, but many remain skeptical about how much financial relief these measures will provide.

Under current projections, the Social Security trust funds are expected to be depleted within the next decade, at which point the program will no longer be able to pay full benefits without congressional action. While administrative cuts may offer some savings, experts argue they won’t be enough to meaningfully extend the program’s long-term solvency.

“The efforts to cut costs at the Social Security Administration would likely only help the trust fund solvency in some minuscule way,” said Andrew Biggs, a senior fellow at the American Enterprise Institute and former SSA principal deputy commissioner.

Biggs also pointed out that these cuts might be less about financial sustainability and more about setting a precedent for broader reductions in government spending.

“I’m not disagreeing with the idea that the agency could be more efficient,” he said. “I just wonder whether you can come up with that by cutting the positions first and figuring out how to have the efficiencies later.”

With millions of Americans relying on Social Security benefits, the coming months will reveal whether these reductions will genuinely improve the system’s efficiency or create even greater challenges for those who depend on it most.