PROFESSIONAL INSIGHT
A professor from the University of Michigan shares perspectives on the Trump administration’s proposal to reduce the workforce of the Social Security Administration.
Pamela Herd holds the Carol Kakalec Kohn chair in social policy at the Ford School of Public Policy and is a faculty associate at the Institute for Social Research’s Population Studies Center. Her work explores disparities and their interplay with health, aging, and policy.
“Social Security represents our largest and most effective safety net initiative. The yearly $1.6 trillion in benefits accounts for 21% of federal expenditures and constitutes 40% of income for senior citizens,” she remarked. “The Trump administration is proposing significant layoffs within the Social Security Administration. Leadership has indicated the plan to reduce 7,000 of its 57,000 personnel.
“It is important to note that Social Security is already an exceptionally effective program. In fact, the proportion of Social Security expenditure dedicated to administration has consistently decreased, dropping from 2.2% in 1957 to a mere 0.5% currently.
“As the number of individuals the agency supports has progressively increased, its administrative capabilities have been consistently diminishing. Even prior to these impending cuts, the system has faced considerable stress. This is particularly evident for individuals with disabilities, as the wait times for eligibility verification have extended over several years, resulting in tens of thousands of individuals passing away annually while awaiting enrollment.
“Although the agency operates efficiently, such considerable reductions would jeopardize its ability to maintain functionality. Monthly distributions must be processed for the 73 million beneficiaries, approximately 10,000 newborns each day require Social Security numbers, new retirees must begin to receive their benefits, and payment to deceased beneficiaries must be halted.
“The information technology systems require updates and audits. Payment methods need to remain operational. The agency must also gather and maintain earnings records for around 200 million individuals who are not yet receiving benefits.
“Such a magnitude of cuts will likely lead to significant challenges for the agency in ensuring timely payments and accurately collecting, storing, and securing wage records.”