Since President Donald Trump was sworn into office on January 20, he has proposed an ambitious agenda, including several key changes that could impact how the Social Security Administration functions.
During Trump’s joint address to Congress, he called attention to his efforts in the early weeks of his second term. He covered a wide range of topics and outlined his plans for the next four years, including investigating what he said was fraud and waste within the Social Security program.
In 2025, about 73 million Americans will receive Social Security, Supplemental Security Income (SSI), or both, according to the Social Security Administration, with nearly $1.6 trillion in benefits paid out annually. Trump's agenda could directly impact Social Security, a significant source of income for most people over age 65. However, the program is on slippery ground and will need to reduce benefits in ten years if Congress doesn't make changes to bolster its finances.
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Although it's still early days into his second term, here’s what Trump has done with Social Security so far. (A separate story looks at what Trump has done with Medicare so far).
Trump taps Lee Dudek as the new acting Social Security Administration (SSA) commissioner
President Trump named Leland "Lee" Dudek as the acting commissioner of the Social Security Administration after Michelle King resigned. Dudek was previously a senior advisor in SSA's Office of Program Integrity. He had also previously worked as a management analyst and advisor in the Social Security's anti-fraud office. Dudek will fill the role pending the Senate confirmation of Trump's choice to lead the agency, Fiserv CEO Frank Bisignano.
Trump plans to implement the Social Security Fairness Act as quickly as possible
The Social Security Administration recently announced it will begin paying retroactive benefits and increase monthly benefit payments to over 3.2 million individuals whose benefits were affected by the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).
“Social Security’s aggressive schedule to start issuing retroactive payments in February and increase monthly benefit payments beginning in April supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible,” said Lee Dudek, Acting Commissioner of Social Security. “The agency’s original estimate of taking a year or more now will only apply to complex cases that automation cannot process. The American people deserve their due benefits as quickly as possible.”
Read: Social Security Sent Out Billions in Back Payments This Week. Here's What You Need to Know.
The Administration gives DOGE the green light
In the early days of his administration, President Trump signed an executive order creating the Department of Government Efficiency (DOGE) and made Elon Musk a “special government employee.” His role in the Department of Government Efficiency (DOGE) appears now to focus on federal technology and personnel in its stated goal to cut government spending, waste and fraud, and optimize the workforce.
In response to DOGE’s inquiries, the Social Security Administration (SSA) has reduced its staffing target to 50,000 employees, down from the current number of around 57,000. It also identified cost savings opportunities in grants, contracts, property and technology. According to the SSA, the total savings are estimated to exceed $800 million in fiscal 2025.
This week, the Social Security Administration (SSA) also walked back plans to make significant reductions to its phone services by eliminating telephone support for claims processing and direct-deposit account transactions. Instead, the agency has decided to proceed with a narrower revision barring direct-deposit changes via phone.
Read: Social Security Administration: DOGE Cannot Make Changes to Benefit Payments
The SSA to close offices
In collaboration with DOGE, President Trump has directed the General Services Administration (GSA) to terminate leases on approximately 7,500 federal offices, including those of the Social Security Administration (SSA). Most offices are currently underutilized or closed. However, as the Social Security Administration is already at its lowest staffing level in 25 years, the closures are raising questions about the accessibility of services for beneficiaries.
Read: 47 Local Social Security Offices to Close After DOGE Cuts
Trump doubles down on no tax on Social Security
During his campaign, President Trump wrote on social media, "Seniors should not pay tax on Social Security." He doubled down on that promise during his joint address to Congress. Trump called for no tax on tips, no tax on overtime and no tax on Social Security benefits, emphasizing that reducing waste and fraud would help lower inflation, balance the budget and strengthen the economy — although some states still tax beneficiaries.
Read: What's Wrong With Trump's Pledge to End Taxes on Social Security Benefits
Trump says he will not cut Social Security benefits
“The Trump Administration will not cut Social Security, Medicare, or Medicaid benefits,” the White House said in a press release. “President Trump himself has said it (over and over and over again).”
Read: President Trump's Stances on Social Security and Medicare
Trump wants to lower inflation, which will impact COLAs
Lowering inflation can have a positive effect on Cost of Living Adjustments (COLAs) by stabilizing prices. That, in turn, can help maintain the purchasing power of wages. However, recent tariffs proposed by Trump may temporarily raise inflation, complicating the efforts to achieve lower COLAs.
Read: Retirees Get a Raise in Their Social Security Benefits
Trump cracks down on immigration
President Trump issued several executive orders related to the enforcement of immigration across the border. Although just speculation at this point, an immigration crackdown could potentially reduce labor supply in some industries, which could lead to higher prices for some products and higher inflation, affecting Social Security COLAs.
Read: Are Armed IRS Agents Headed to the Border?
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