The former head of the Social Security Administration (SSA) has issued a stark warning that proposed funding cuts could lead to the “collapse” of the system, potentially interrupting benefit payments for millions of Americans.
“Ultimately, you’re going to see the system collapse, and there will be an interruption of benefits,” Martin O’Malley, former Social Security commissioner under the Biden administration, told CNBC. “I think that will happen within the next 30 to 90 days.”
O’Malley advised Americans to start preparing now, urging beneficiaries to “start saving” in case disruptions occur.
The Impact of Government Efficiency Cuts
The concerns stem from proposed reductions in funding and staffing driven by Elon Musk’s Department of Government Efficiency (DOGE). These changes, according to O’Malley, have already created disarray within the agency, affecting operations and potentially delaying payments.
More than 72.5 million Americans depend on Social Security benefits, with nearly 90% of retirees relying on them for financial stability. The program has operated for over 80 years without missing payments, but that record could be at risk due to planned workforce reductions and office closures.
SSA Faces Workforce and Office Cuts
As part of its restructuring efforts, SSA recently announced “significant workforce reductions.” An anonymous source told the Associated Press that up to 50% of the agency’s workforce could be eliminated, though the SSA officially denied this claim. Instead, the agency has set a staffing target of 50,000 employees—down from the current 57,000.
SSA has also started offering voluntary buyouts to employees, with a deadline of March 14 before layoffs begin. Additionally, DOGE has revealed plans to close 45 SSA offices across the country by allowing leases to expire.
Political Fallout and Public Reaction
O’Malley warned that a disruption in Social Security payments could spark a political firestorm, especially among Americans who have paid into the system for decades.
“People are going to start bringing a lot of heat to members of Congress who have been enabling the destruction of Social Security and the interruption of earned benefits,” he said.
The issue has already ignited a fierce response from congressional Democrats. Senate Majority Leader Chuck Schumer, along with Senators Patty Murray and Ron Wyden, held a press conference accusing the Trump administration and DOGE of attempting to “destroy” Social Security.
“It is hard to believe that the Trump administration wants to cut Social Security, but that’s what’s happening,” Schumer stated, criticizing the decision to fire 7,000 SSA workers and Musk’s recent comments referring to the program as a “Ponzi scheme.”
House Democrats, including Minority Leader Hakeem Jeffries, have echoed these concerns, accusing the administration of “putting Social Security benefits at risk by firing the staff who help beneficiaries and closing down the offices that serve communities across the country.”
Leadership Changes and Uncertainty at SSA
Further instability at SSA has emerged following the resignation of acting commissioner Michelle King in February after a dispute over DOGE’s access to sensitive user data. President Trump has nominated Fiserv CEO Frank Bisignano as the new SSA commissioner, but his confirmation remains pending in the Senate. In the interim, Trump has appointed Leland Dudek, a midlevel SSA employee previously placed on leave for cooperating with DOGE, as the acting commissioner.
Frequently Asked Questions (FAQ)
1. Will Social Security payments stop completely?
No official announcement has confirmed a full halt in payments. However, former commissioner O’Malley has warned that delays or interruptions could occur within the next 30 to 90 days due to staffing cuts and restructuring efforts.
2. What should Social Security recipients do to prepare?
O’Malley has advised beneficiaries to start saving money if possible to cover any potential delays. It is also recommended that recipients monitor updates from SSA and contact their representatives in Congress to voice concerns.
3. Why is the Social Security Administration reducing staff and closing offices?
The cuts are part of an efficiency initiative led by DOGE, aimed at reducing government spending. However, critics argue that these measures could severely impact SSA’s ability to process claims and distribute benefits on time.
4. How can I check if my benefits will be affected?
Beneficiaries can visit the SSA website or call the agency’s customer service for the latest updates. Additionally, staying informed through news reports and official government announcements is crucial.
5. What can Congress do to prevent disruptions?
Lawmakers could intervene by passing emergency funding measures or blocking the proposed staffing and budget cuts. Public pressure and bipartisan cooperation may play a role in determining the agency’s future.
The uncertainty surrounding SSA’s future has left millions of Americans concerned about their financial stability. As political tensions rise, beneficiaries and lawmakers alike will be closely watching to see if the system can withstand these changes without causing widespread hardship .
