John Hughie
Since his return to the White House, President Donald Trump has made cutting government waste and improving federal accountability top priorities.
On his first day back in office—January 20—he signed an executive order to establish the Department of Government Efficiency (DOGE).
This new agency is focused on streamlining federal operations and eliminating unnecessary expenditures.
Commitment to Protecting Social Security, Medicare & Medicaid
During his campaign, Trump vowed to protect key safety net programs such as Social Security, Medicare, and Medicaid. In a Fox News interview, he affirmed, “I’m not going to touch Social Security.”
While maintaining these benefits, his administration is also committed to fighting fraud and enhancing the program’s efficiency—changes that are already underway.
Collaboration Between DOGE and SSA
The Social Security Administration (SSA) is actively collaborating with DOGE to optimize operations and cut costs.
This partnership has already generated savings in areas like payroll, technology, contract management, and printing, totaling nearly $1 billion—approximately 15% of SSA’s expected administrative budget for 2025.
Workforce Reduction Strategy
To further reduce operational expenses, the SSA has initiated a downsizing plan, cutting its workforce target from 57,000 to 50,000 employees as of February.
This includes voluntary retirements and delayed resignations, supported by incentive payouts. While these moves involve upfront costs, they are projected to result in long-term savings.
Tougher Recovery on Overpayments
Under Trump, the SSA has adopted a much more aggressive stance on recovering overpayments. Previously, only 10% of overpaid benefits were recouped each month under the Biden administration.
Now, that rate has jumped to 50%, meaning affected individuals will see half of their monthly checks withheld until debts are repaid. Notices began in April, and deductions start in late July.
The SSA anticipates saving around $700 million annually from this initiative. Beneficiaries still have the right to appeal the overpayment notice.
Enhancing Fraud Prevention Technology
To minimize fraud while improving ease of access, the SSA has rolled out new technology tools. Although the original plan emphasized in-person or online ID verification, updates now allow most applicants to complete the process by phone.
The system uses AI-powered behavior tracking to flag suspicious activity and request additional verification only when necessary.
Better Public Service and Accessibility
In addition to cutting fraud and costs, the SSA is working to enhance customer experience. As of July, a new phone system has been implemented in 70% of SSA offices, resulting in 50% shorter wait times. Additionally, the my Social Security website is undergoing upgrades to offer 24/7 access with fewer disruptions.
Ongoing Financial Instability of Social Security
Despite these reforms, Social Security’s financial health remains precarious. The program is projected to run a $111 billion deficit in 2025. If structural reforms are not introduced, the trust fund may be depleted by 2033.
Once that occurs, incoming revenues will only cover about 77% of promised benefits, potentially leading to a 23% reduction in payments within the next decade unless Congress intervenes.
The Trump administration’s approach to revamping Social Security emphasizes efficiency, fraud reduction, and cost-saving strategies.
While these initiatives are already producing measurable results, they do not fully resolve the looming financial challenges facing the program.
It remains critical for beneficiaries to stay informed and prepared for potential changes in the years ahead, as the future of Social Security still hangs in the balance.
FAQs
Will Social Security benefits be reduced due to the overpayment recovery policy?
Yes, recipients who have been overpaid may see up to 50% of their monthly benefit withheld until the full amount is recovered. However, appeals are allowed.
Are in-person visits still required to apply for Social Security benefits?
Not in most cases. Thanks to updated fraud detection technology, most individuals can apply by phone, unless flagged for unusual activity.
When will the new SSA phone system be available nationwide?
As of July 2025, the new phone system is already active in 70% of offices, with full implementation expected soon.
