Briefing

INFORMATION ABOUT THE MARKETS AND YOUR MONEY

- ELAINE SILVESTRINI

STAFF CUTBACKS REACH THE SOCIAL SECURITY ADMINISTRATION

In late February, the Social Security Administration said that it would cut 7,000 jobs, or about 12% of its staff, putting “significant focus on functions and employees who do not directly provide mission-critical services.” The reductions are part of the Trump administration’s broader efforts to downsize the federal workforce. The SSA also said it would slash the number of its regional offices (which oversee and support employees who assist beneficiaries) from 10 to four, and it is closing at least 10 local Social Security offices around the country, too.

Earlier in February, acting SSA commissioner Michelle King stepped down following requests by the Trump administration’s Department of Government Efficiency (DOGE) to access information on Social Security recipients. Additionally, about two dozen senior SSA staff members resigned in late February. President Trump has nominated Frank Bisignano, CEO of financial-technology company Fiserv, to head the SSA.

What it means for you. President Trump has indicated that Americans won't face cuts to their Social Security benefits. But for those who need assistance from a Social Security representative, diminished staffing could result in longer wait times. In January, callers who dialed Social Security’s helpline (800-772-1213) waited an average of 30 minutes to reach a representative.

The time to process applications for benefits could lengthen, particularly for Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Recently, the SSA’s backlog of claims for these benefits was nearly 2 million. On average, applicants for SSDI and SSI benefits wait seven months for an initial eligibility determination, according to data from the Urban Institute.