People line up outside the Social Security Administration office in San Francisco.
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New leadership at the Social Security Administration tied to the Trump administration’s so-called Department of Government Efficiency has implemented swift changes.
Many experts say Americans will notice a difference when seeking help from the agency following staff cuts, regional office closures and new service policies.
The Social Security Administration is currently under the temporary leadership of acting Commissioner Lee Dudek, who assumed that role in February after acting Commissioner Michelle King stepped down over DOGE privacy concerns. Dudek had previously said publicly that he had been placed on administrative leave for cooperating with DOGE, according to reports.
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As a temporary leader, Dudek is not required to answer 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 panel Thursday hosted by the National Academy of Social Insurance, a nonprofit, nonpartisan organization.
“It’s a check and balance that we currently don’t have,” Fichtner said.
As DOGE’s actions have upended the status quo at the Social Security Administration, former agency leaders, retirement experts and Democratic lawmakers have raised concerns about its new policies.
Meanwhile, at a committee hearing Wednesday, Republicans in Congress praised DOGE, saying it has improved the agency’s efficiency in processing benefit increases tied to a new law.
The Social Security Administration did not respond to CNBC’s request for comment.
‘Economic security of millions of Americans is at stake’
The National Academy of Social Insurance released a statement Friday signed by recipients of its award named on behalf of former Social Security Administration Commissioner Robert M. Ball, who served in that role from 1962 to 1973.
“The economic security of millions of Americans is at stake,” the signees wrote of the “major, destabilizing changes” the agency has recently undergone.
Among those signing the statement were former acting Social Security Administration Commissioner Kilolo Kijakazi, former Treasury Secretary Jacob Lew, and Stephen Goss, a former Social Security Administration chief actuary.
The statement lists “unprecedented actions” it says were recently undertaken 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,” the NASI statement said.
Among those most vulnerable to longer wait times for benefits are the 2 million disability benefits applicants who are currently waiting on decisions, the statement said. An estimated 10,000 applicants have died in recent years while waiting for disability benefits, it said.
The customer service crisis faced by the Social Security Administration, including a record initial disability backlog and record customer service wait times, existed before DOGE, House Ways and Means Committee Chairman Jason Smith, R-Mo., said during the hearing.
The Trump administration has said the president “will always protect” Social Security and will not cut benefits.
“Any American receiving Social Security benefits will continue to receive them,” White House press secretary Karoline Leavitt said via email Monday when asked about the NASI statement. “The sole mission of DOGE is to identify waste, fraud, and abuse only.”
Confirmation process ‘needs to move along quickly’
President Donald Trump has nominated Frank Bisignano, chief executive of payments and financial technology company Fiserv, to serve as commissioner of the agency.
Bisignano’s Senate confirmation hearing is expected to take place in the coming weeks.
Former Social Security Administration Commissioner Michael Astrue, who led the agency from 2007 to 2013, said during the National Academy of Social Insurance’s panel Thursday that while he doesn’t know Bisignano, “he can’t possibly be worse than what we have now.”
While the confirmation process has moved slowly in the past, it would be better to move swiftly and find a suitable leader for the agency, Astrue said.
“The process needs to move along quickly,” Astrue said.
When Bisignano does sit before the Senate, he will have to answer “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, said during Thursday’s panel.
Senators may want to know whether Bisignano “approved and blessed” changes after his nomination such as cutting staff, eliminating offices and closing regional headquarters, O’Malley said.
Democratic Sens. Elizabeth Warren of Massachusetts and Ron Wyden of Oregon sent a letter to Bisignano on March 11 emphasizing that he will be responsible for any benefit interruptions that may be prompted by sweeping changes at the agency. In the letter, they also included questions on his views on DOGE access to sensitive data, further staff cuts or other possible future plans for the agency.
CNBC was unable to reach Bisignano for comment before publication.
Seniors ‘already seeing the benefit’
A new law that President Joe Biden signed on Jan. 5 — the Social Security Fairness Act — will allow more than 3.2 million individuals who are eligible for public pensions to receive increased Social Security checks.
Affected beneficiaries also stand to receive payments dating back to January 2024.
Smith, the House Ways and Means chairman, said during the hearing Wednesday that the Social Security Administration told him it would take “1,000 work hours” to send those back payments, much of which had to be done manually on a case-by-case basis. In his written testimony, Smith said the agency told him it would take “1,000 work-years” to process the changes.
The agency said in a January update on its website that it “could take more than one year to adjust benefits and pay all retroactive benefits.” In February, the agency said it planned to expedite the processing of the payments, with most eligible individuals set to see their one-time payments by the end of March.
Smith said in his written testimony that since the new administration began, the agency has sent more than 71% of all back payments to affected beneficiaries.
“Seniors are already seeing the benefit of doing things differently,” he said.
“The Trump administration’s embrace of automation and technology has made a night-and-day difference for those affected seniors,” Smith said. “This is how the agency should work.”
Correction: A statement from the National Academy of Social Insurance released Friday said an estimated 10,000 applicants have died in recent years while waiting for disability benefits. A previous version of this story misstated the number.
