The former head of the Social Security Administration (SSA) has issued a stark warning that proposed budget cuts could push the entire system toward collapse, potentially delaying benefits for millions of Americans.
“Ultimately, you’re going to see the system collapse, and there will be an interruption of benefits,” Martin O’Malley, the former Social Security commissioner under the Biden administration, told CNBC. “I think that will happen within the next 30 to 90 days.”
O’Malley urged beneficiaries to start preparing now. “People should start saving now,” he emphasized.
The Impact of Proposed Cuts
O’Malley, a Democrat who previously served as Maryland’s governor from 2007 to 2015, pointed to planned reductions in funding and staffing by Elon Musk’s Department of Government Efficiency (DOGE) as a major cause for concern. He noted that these changes have already created operational disruptions within the SSA.
More than 72.5 million Americans rely on Social Security benefits, with nearly 90% of those over 65 depending on the program. Since its inception, Social Security has consistently delivered payments for over 80 years without missing a cycle.
However, under DOGE’s cost-cutting measures, SSA workers were recently informed that the agency will undergo “significant workforce reductions” as part of an “agency-wide restructuring.” One source told the Associated Press that as much as 50% of SSA’s workforce could be eliminated, though the agency has denied this claim. Instead, SSA stated on February 28 that its staffing target is set at 50,000 employees, down from the current 57,000.
The SSA has offered buyouts to employees, with a March 14 deadline before layoffs officially begin. Additionally, DOGE has announced plans to close 45 SSA offices nationwide by letting their leases expire.
Political Backlash and Warnings from Lawmakers
O’Malley predicted severe political fallout if benefit payments are delayed due to these changes.
“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.
Social Security is a highly popular program among Americans, making any attempts to alter it politically volatile. On Monday, leading Senate Democrats—including Senate Majority Leader Chuck Schumer (NY), Sen. Patty Murray (WA), and Sen. Ron Wyden (OR)—held a press conference condemning the Trump administration and DOGE for their actions.
“It is hard to believe that the Trump administration wants to cut Social Security, but that’s what’s happening,” Schumer declared.
He warned that the agency’s plan to fire 7,000 employees coupled with Musk’s recent characterization of Social Security as a ‘Ponzi scheme’ signals an alarming shift.
House Minority Leader Hakeem Jeffries (D-NY) also voiced strong opposition:
“The Trump administration is putting Social Security benefits at risk by firing the staff who help beneficiaries and closing down the offices that serve communities across the country.”
What Happens Next?
With widespread concerns about delayed payments and operational slowdowns, experts recommend that Social Security beneficiaries:
- Monitor official SSA updates regarding staffing and office closures.
- Consider adjusting financial plans in case of temporary benefit delays.
- Contact congressional representatives to express concerns about potential disruptions.
FAQ: Social Security and Potential Disruptions
1. Will Social Security payments stop completely?
Not necessarily. While there are warnings about interruptions, SSA has not officially announced a halt to payments. However, delays could occur if workforce reductions impact processing times.
2. What should I do if my local SSA office closes?
SSA offices provide essential services, but many functions can be done online at ssa.gov. If you need in-person assistance, check for the next nearest open location.
3. How can I check the status of my Social Security benefits?
Log into my Social Security account to check benefit details, update information, and receive official notifications.
4. Will Congress step in to stop these cuts?
Some lawmakers are already opposing the reductions, but it remains uncertain whether they will be able to reverse or prevent them. Public pressure may play a role in influencing congressional action.
5. What are my options if I experience a delay in receiving benefits?
Consider having an emergency fund or alternative financial resources to cover potential gaps. If you face extreme hardship, some states offer temporary financial assistance programs that may help bridge the gap.
As the situation unfolds, Social Security beneficiaries should stay informed and prepared for possible disruptions. If you’re concerned, reaching out to local legislators and staying updated on SSA communications will be crucial in the coming months.