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Social Security chief reverses shutdown stance after judge bars DOGE from records

by Investor News Today
March 22, 2025
in Personal Finance
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Social Security chief reverses shutdown stance after judge bars DOGE from records
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An indication for the U.S. Social Safety Administration is seen outdoors its headquarters in Woodlawn, Md., on Thursday, March 20, 2025. 

Tom Williams | Cq-roll Name, Inc. | Getty Photographs

The Social Safety Administration’s performing commissioner reversed his stance late Friday after telling a number of information shops {that a} new court docket ruling could require him to close down the company’s operations.

Appearing Commissioner Lee Dudek mentioned in a written assertion that the court docket “issued clarifying steerage” about its earlier momentary restraining order barring members of the Trump administration’s DOGE workforce from getting access to personal knowledge.

“Due to this fact, I’m not shutting down the company,” he mentioned. “SSA staff and their work will proceed below the TRO.”

On Thursday, a federal choose temporarily blocked the cost-cutting initiative referred to as the Division of Authorities Effectivity from accessing people’ private knowledge on the Social Safety Administration. Dudek said in interviews afterward that the ruling could require him to chop off entry to all of the company’s staff.

“The whole lot on this company is [personally identifiable information],” Dudek told The Washington Put up on Friday. “Except I get clarification, I am going to simply begin to shut it down. I haven’t got a lot of a selection right here.”

In her ruling, choose Ellen Lipton Hollander barred Social Safety Administration staff together with Dudek from granting the DOGE workforce entry to info that can be utilized to establish people. DOGE will not be a Cupboard division, and its chief, Tesla CEO Elon Musk, is taken into account a particular authorities worker.

Hollander additionally ordered DOGE workforce members to delete all non-anonymized personally identifiable info they’ve accessed “straight or not directly” since Jan. 20.

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Following the ruling, Dudek mentioned the court docket order is so broad that it may apply to any Social Safety worker, Bloomberg reported Thursday.

“My anti-fraud workforce could be DOGE associates. My IT workers could be DOGE associates,” Dudek advised Bloomberg. “Because it stands, I’ll comply with it precisely and terminate entry by all SSA staff to our IT techniques.”

Nevertheless, in a March 18 letter to Sen. Elizabeth Warren, D-Mass., Dudek mentioned there are solely 11 DOGE-affiliated people on the Social Safety Administration.

Warren, in a written assertion, mentioned, “The Trump administration is threatening to close down all of Social Safety just because a choose dominated to dam 11 DOGE staff from sticking their fingers in taxpayers’ personal info.”

Dudek additionally mentioned he would ask the choose to right away make clear the order, the information outlet reported.

“We now have obtained the court docket order and we are going to comply,” a Social Safety spokesperson mentioned in an electronic mail assertion to CNBC on Friday. The company didn’t reply on to questions from CNBC on Dudek’s feedback, or make Dudek accessible for an interview.

Advocacy teams slam Social Safety management

The Social Security Administration sends thousands and thousands of profit checks per 30 days to retirement and incapacity program beneficiaries, each by means of Social Safety and Supplemental Safety Revenue.

Dudek’s feedback, and the implications that the court docket actions may intrude with the well timed supply of advantages, prompted a wave of responses from advocacy teams.

“For nearly 90 years, Social Safety has by no means missed a paycheck — however 60 days into this administration, Social Safety is now on the brink,” Lee Saunders, president of the American Federation of State, County and Municipal Staff, mentioned in an announcement in response to Dudek’s feedback. Hollander’s ruling was in a lawsuit {that a} coalition of unions and retirees, together with AFSCME, a commerce union, introduced in opposition to the Social Safety Administration.

Dudek “has confirmed once more that he’s in method over his head,” mentioned Saunders. He mentioned that below Dudek’s management the company has compromised People’ safety, shut down sure company providers and deliberate layoffs.

In a separate assertion, Nancy Altman, president of Social Safety Works, mentioned Dudek’s management has been the “darkest in Social Safety’s almost 90 yr historical past.”

“He has sown chaos and destruction,” Altman mentioned.

Fiserv CEO on the nomination to Social Security Commisioner role

In a memo despatched to Social Safety workers members Tuesday that was obtained by NBC News, Dudek apologized for having made errors and promised to be taught from them.

Dudek assumed the function of performing commissioner in February when then performing commissioner Michelle King stepped down resulting from DOGE privateness considerations. Dudek, a long-time Social Safety worker, reportedly publicly disclosed he had been positioned on administrative leave for cooperating with DOGE.

Trump has nominated Frank Bisignano, CEO of funds expertise firm Fiserv, to function commissioner. Bisignano’s Senate affirmation listening to is scheduled for Tuesday.

Democrats, Republicans at odds over Social Safety

Tensions surrounding modifications on the Social Safety Administration have prompted a confrontation between Democrats and Republicans in Congress.

Home Methods and Means Committee rating member Richard Neal, D-Mass., on March 19 put out a statement that known as the present state of affairs on the Social Safety Administration a “five-alarm hearth.” New modifications that will restrict customer support and limit profit entry are “not simply burdensome for our nation’s seniors and folks with disabilities — they’re back-door profit cuts,” Neal wrote.

In the meantime, Home Methods and Means Committee Chairman Jason Smith, R-Mo., in a March 12 statement mentioned Democrats are “scaremongering to attain political factors,” whereas “the details are usually not on their aspect.”

“President Trump didn’t contact Social Safety advantages throughout his first time period,” Smith mentioned. “Home Republicans and President Trump stay dedicated to defending and preserving the retirement advantages seniors rely on.”



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