Social Security Administration faces job cuts, office closures under Trump

Mar. 12—Many government agencies are undergoing evaluations and budget cuts as the second Trump administration enters its third month, and the Social Security Administration is no exception.

The agency, which provides livelihoods to millions across the country, is expected to cut 7,000 jobs and close six of its 10 regional offices, according to multiple reports, including the New York Times.

These cuts could significantly affect nearly 69 million Americans who receive Social Security benefits, potentially causing payment disruptions and even the elimination of the agency's telephone support system.

"SSA leadership is weighing a proposal to eliminate telephone support for claims processing and direct-deposit account transactions, instead directing seniors and disabled individuals to online services and in-person field offices," Newsweek writes citing the Washington Post.

All of these potential changes at the Social Security Administration are being closely monitored by President Donald Trump and his senior adviser, Elon Musk, whom he has tasked with leading the newly formed Department of Government Efficiency, known as DOGE.

Democratic Sens. Elizabeth Warren of Massachusetts and Ron Wyden of Oregon have warned Frank Bisignano, Trump's nominee to lead the Social Security Administration, who is still awaiting Senate confirmation.

"As President Trump's nominee for SSA commissioner, you will be responsible if the Trump administration's attacks on the program result in failures or delays in getting Americans their Social Security checks—in other words, a backdoor cut to benefits," Warren and Wyden wrote in a Tuesday letter to Bisignano," a report from CNBC reads. "This would represent a reduction in workforce of over 10 percent and will have devastating impacts on the program.

"Social Security beneficiaries already may face longer wait times because of the changes."

According to the Social Security Administration's 2025 fact sheet, "An average of almost 69 million Americans per month will receive a Social Security

benefit, totaling about $1.6 trillion in benefits paid during the year."

Musk, however, has been a vocal critic of the program that was established in 1935 and has been collecting taxes from Americans since 1937. He recently referred to Social Security as "the biggest Ponzi scheme of all time."

"Basically, people are living way longer than expected, and there are fewer babies being born, so you have more people who are retired and live for a long time and get retirement payments," Musk said in an interview with conservative host Joe Rogan via Politico.

Musk's rhetoric on Social Security has highlighted concerns over the government's financial status and the possibility that Social Security and Medicare could run out of money within the next decade.

Robert Reich, a columnist with The Guardian writes, "The only reason social security is running out of money is that its trustees never anticipated America's current degree of income inequality — with so much of the nation's income in the hands of relatively few people (such as Musk).

"The way to fix this is to lift the cap on income subject to social security payroll taxes, which is now $176,100."

Privatizing Social Security has been a recurring topic since Trump took office.

"Privatizing Social Security can boost workers' rate of return by allowing retirement contributions to be invested in private assets, such as stocks, which yield a better return than the present pay-as-you-go retirement system," the Brookings Institution writes. "Returns can be boosted still further if the government borrows on a massive scale to pay for past Social Security liabilities, allowing workers to invest a larger percentage of their pay in high-yielding assets.

"Exactly the same rate of return can be obtained, however, if the current public system is changed to allow Social Security reserves to be invested in private assets."

Democratic Rep. John Larson of Connecticut spoke out during a congressional oversight hearing on DOGE, criticizing lawmakers for following Musk and Trump's lead on Social Security. Larson, the ranking member of the Social Security Subcommittee, also criticized the lack of attendance at the hearing. He claimed the presidency is acting like a tyranny, disregarding the separation of powers.

A video of Larson's remarks was posted on the PublicFreakout subreddit on March 12 and quickly reached the front page of Reddit, garnering nearly 8,000 upvotes and more than 500 comments.

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