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‘Keep your hands off our Social Security,’ lawmakers warn amid DOGE budget cuts

by Investor News Today
February 11, 2025
in Personal Finance
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‘Keep your hands off our Social Security,’ lawmakers warn amid DOGE budget cuts
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The Division of Authorities Effectivity, led by billionaire Elon Musk, has moved shortly to curb authorities spending at federal companies together with the U.S. Agency for International Development and Consumer Financial Protection Bureau.

At a Monday rally exterior the Social Safety Administration’s Maryland headquarters, sure lawmakers and advocates warned that the federal company accountable for advantages for 72.5 million People may very well be amongst DOGE’s subsequent targets.

“Hold your fingers off our Social Safety, as a result of this has nothing, nothing to do with authorities effectivity,” Sen. Chris Van Hollen, D-Md., mentioned on the rally.

Below Musk’s management, DOGE has launched plans to close down the U.S. Company for Worldwide Improvement whereas additionally telling staffers on the Client Monetary Safety Bureau to cease work till additional discover.

The following goal often is the Division of Schooling, Van Hollen mentioned, adopted by the Nationwide Oceanic and Atmospheric Administration, the Facilities for Medicare & Medicaid Companies after which the Social Safety Administration.

Extra from Private Finance:
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Social Safety is among the “most necessary social packages of our lifetime,” with People working for years to qualify for advantages, mentioned Sen. Angela Alsobrooks, D-Md.

“It’s America’s promise to us after we paid into Social Safety,” Alsobrooks mentioned. “And but that is below assault even at the moment.”

Throughout his marketing campaign, President Donald Trump repeatedly promised that he wouldn’t contact Social Safety advantages. He reiterated that promise final week, according to reports, whereas on the similar time pointing to profit fraud allegedly perpetrated by illegal immigrants.

“The president stays dedicated to his promise to not contact [Social Security],” whereas additionally doubling down on his promise to finish taxation of advantages, a White Home official mentioned in an emailed assertion to CNBC. “Any work from DOGE is to search out fraud, which they’ve efficiently executed.”

Large funds cuts make Social Safety a goal

As a result of DOGE has been tasked with executing large spending cuts, specialists say it will likely be troublesome to keep away from Social Safety.

“Once you’re tasked with reducing $2 trillion and 70% of the federal funds is comprised of Social Safety, Medicare, Medicaid and protection, then you realize that they will proceed to go after this,” mentioned Rep. John Larson, D-Conn., throughout a Sunday city corridor with constituents.  “We’re going to withstand them.”

Lawmakers in crimson states might also push again, given how their constituents might negatively react to any adjustments, Larson mentioned.

The Social Safety Administration has “traditionally struggled to supply important providers in a well timed method,” a bunch of Democratic senators just lately said in a letter to the Workplace of Personnel Administration, with lengthy waits to succeed in the company by cellphone and for determinations on incapacity advantages.

Fiserv CEO on the nomination to Social Security Commisioner role

In response to the most recent projections from the Social Safety Trustees, the belief fund used to pay retirement advantages is projected to be depleted round 2033 if no legislative motion is taken to deal with the problem. If Congress would not act by 2033, the fund’s reserves will turn into depleted and persevering with program earnings shall be enough to pay 79% of scheduled advantages.

To make sure, any makes an attempt by the Trump administration to make adjustments could also be met with litigation.

A federal choose has briefly stopped Musk and different DOGE crew members from accessing Treasury Division methods and information, which had prompted worries that delicate data involving Social Safety numbers and tax data could also be compromised. The Trump administration has filed a movement to vacate a restraining order prohibiting DOGE entry to Treasury fee methods. Musk has known as for the choose in that case to be impeached.

New strikes ‘put individuals’s information in danger,’ professional says

Whereas DOGE has entry to the Treasury Division system, the priority is they might even have entry to Social Safety Administration information together with Social Safety numbers, direct deposit accounts and private addresses, mentioned Kathleen Romig, director of Social Safety and incapacity coverage on the Middle on Price range and Coverage Priorities and a former Social Safety Administration worker.

In a press release to members of Congress final week, the Treasury Division sought to reassure lawmakers that DOGE can have “read-only” entry to information.

“Treasury is dedicated to safeguarding the integrity and safety of the system, given the implications of any compromise or disruption to the U.S. economic system,” a Treasury official wrote in a letter to members of Congress. “The Fiscal Service is assured these protections are strong and efficient.” 

The White Home didn’t reply to CNBC’s request for additional remark.

However, Romig mentioned there may be the potential for brand new processes to place individuals’s information in danger “in main and really scary methods.”

“SSA has by no means had an information breach, and that is as a result of they’ve it so extremely safe,” Romig mentioned.

However with reviews of DOGE utilizing exterior servers and momentary staff with out safety clearances, that would put that delicate data in danger, she mentioned.

Different potential funds cuts may additionally negatively affect Social Safety, Romig mentioned.

For instance, if DOGE’s plans to chop federal leases affect the company, which will depart Social Safety beneficiaries with out entry to discipline places of work, she mentioned. Furthermore, efforts to chop federal staff might damage the company because it already faces staffing points.



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