There Is Still a Risk Social Security Payments Could Be Delayed

Personal Finance

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Published: March 7, 2025 9:15 am

As the Trump White House works to downsize the federal workforce, cuts at the Social Security Administration (SSA) could delay payments to 69 million Americans. This branch of the government has cut 7,000 workers out of a total of 57,000.

24/7 Wall St. Key Points:

Job cuts at the Social Security Administration could delay payments to millions of Americans.
That could push many below the poverty line almost immediately.
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A chorus of people believe there could be a temporary disruption of the system. However, each is only expressing an opinion. No one can accurately predict what will happen. It is, however, more certain what the effects are likely to be. This is particularly so for people who rely on Social Security for most of their income.

Acting SSA commissioner Leland Dudek expressed anxiety about payments. According to the Washington Post, he said in a private meeting, “outsiders who are unfamiliar with nuances of SSA programs” do not understand the disruptions the layoffs may have caused.

Former SSA commissioner Martin O’Malley told CNBC that workforce cuts could result in a system collapse. He told Barrons that payments could be delayed. O’Malley hopes Congress will keep the benefits coming on time. However, he said, there is a chance that will not happen.

Business Insider reported that several agency employees said, “Cuts to the Social Security Administration’s workforce will have a detrimental effect on the benefits millions of Americans rely on every month.”

The danger of the cuts, even if temporary, is that people who rely on Social Security for most of their income cannot make the most basic payments for essentials without quick outside support. According to the SSA, “Among Social Security beneficiaries age 65 and older, 12% of men and 15% of women rely on Social Security for 90% or more of their income.” A lack of payments would push them below the poverty line almost immediately.

The future of Social Security payments is unpredictable, but what that could do to millions of Americans is not.

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