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By Aliss Higham
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The Social Security Administration (SSA) has announced that it has made some $800 million in savings.
Why It Matters
The Trump administration is continuing in its overhaul of the federal government, with numerous government agencies being investigated to make cost-savings.
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President Donald Trump's executive order, establishing the Department of Government Efficiency (DOGE), directs the nonofficial federal agency to "implement the president's agenda by modernizing federal technology and software to maximize governmental efficiency."
What To Know
The SSA said in a press release issued on March 3 that it has implemented "cost-saving and cost-avoidance" measures.
The biggest saving comes from payroll cuts, including a hiring freeze and reduced overtime for SSA and Disability Determination Services, saving $550 million.
The Information Technology Systems (ITS) budget was reduced by $150 million through contract cancellations, while non-ITS travel cuts save $10 million. Contract and grant terminations add another $30 million in savings.
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In real estate, SSA reduced 270,000 square feet of non-public-facing office space, saving $10.2 million, with an additional 30,000 square feet targeted. Over 60 lease terminations will save $4 million annually.
As well as this, a new security staffing model for field offices is projected to save $30 million in the 2025 fiscal year. It follows the announcement that the SSA would shutter several of its field offices and terminate employment contracts for thousands of its workers.
The SSA said in the release that the savings "make good on President Trump's promise to protect American taxpayers from unnecessary spending while continuing to ensure it delivers on its mission."
What People Are Saying
Lee Dudek, acting commissioner of Social Security, said in the press release issued on March 3: "For too long, SSA has operated on autopilot. We have spent billions annually doing the same things the same way, leading to bureaucratic stagnation, inefficiency, and a lack of meaningful service improvements. It is time to change just that."
Martin O'Malley, former commissioner under ex-President Joe Biden, said on social media prior to the savings announcement being made: "Seniors and people on disabilities should start putting away what money they can now. The actions being taken by the Trump/Musk Administration to gut customer service and drive employees out of this greatly understaffed agency will break Social Security as we have known it for 90 years. Benefit check interruptions coming soon."
Howard Gleckman, senior fellow at The Urban Institute, a Washington, D.C.-based think tank, wrote in a piece for Bloomberg: "It is not clear how many SSA's staff will be cut. And reductions to Social Security operations surely will get pushback from many members of Congress, even some Republicans. But the real victims to cuts to an already short-staffed Social Security Administration inevitably will be those who rely on its benefits."
What Happens Next
Whether there will be further cuts to the SSA is not known at this time.
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