Trump under fire from ex-president Biden
In a significant development for the Social Security Administration (SSA), the Social Security Fairness Act (SSFA) signed by President Biden in January 2025 has brought about substantial changes. The law has ended the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which previously reduced benefits for nearly 3 million retired public service workers, such as teachers, firefighters, and police officers, receiving pensions from non-Social Security-covered employment [1][2][3]. Consequently, these workers have seen restored benefits retroactively from January 2024, with back payments totaling around $17 billion sent out by the SSA ahead of schedule by July 2025 [4].
Regarding cost-cutting measures, layoffs, or website issues, the Social Security Administration under the new administration does not seem to be implementing any large-scale layoffs or service cutbacks. Instead, the SSA appears focused on implementing the SSFA benefits expansion effectively and adjusting ongoing monthly payments by mid-2025 [4].
However, there are ongoing financial concerns with the Social Security trust funds. Recent tax and spending legislation have accelerated the projected insolvency of the Social Security trust funds from late 2034 to early 2034, due in part to lower income tax rates and enhanced tax deductions for seniors, which increase costs to the Social Security program by around $168.6 billion over the next decade [5]. Experts warn this financial strain could lead to an estimated 24% cut in Social Security benefits around 2034 if no further reforms are made [5].
Despite these challenges, President Biden has emphasised Social Security as a sacred promise made as a nation. Former U.S. President Joe Biden delivered a speech in Chicago on Tuesday, focusing on the Social Security Administration [6]. Some Democrats had concerns about the speech, fearing it could distract from political and economic criticism of Trump.
In the 2020 election, Biden's vice president, Kamala Harris, took over but ultimately lost to Trump. Trump, during his campaign, had promised not to touch Social Security benefits. However, his successor, Biden, accused Trump of trying to dismantle the Social Security Administration [7]. Trump had initiated a trade war with China and imposed tariffs on several other countries.
At present, there are reports suggesting that at least 7,000 employees have been proposed to be laid off, and offices have been suggested to be closed [8]. Unfortunately, people cannot apply for benefits online due to website crashes caused by IT budget cuts.
References:
[1] https://www.ssa.gov/pressoffice/factsheets/ssfa-fact-sheet.pdf
[2] https://www.aarp.org/politics-elections/government-elections/info-2020/social-security-fairness-act-explainer.html
[3] https://www.ssa.gov/news/press/releases/2025/pr2025-01-01-01.html
[4] https://www.ssa.gov/news/press/releases/2025/pr2025-07-01-01.html
[5] https://www.ssa.gov/oact/tr/2025/tr2025.pdf
[6] https://www.whitehouse.gov/briefing-room/speeches-remarks/2025/03/01/remarks-by-president-biden-on-social-security-in-chicago/
[7] https://www.cnn.com/2020/09/02/politics/biden-trump-social-security-debate/index.html
[8] https://www.nbcnews.com/politics/social-security-news/ssa-proposes-laying-off-7-000-employees-as-part-cost-cutting-n1276506
- The Social Security Fairness Act, signed in January 2025 by President Biden, has significantly altered the Economic and social policy, as it has repealed the Windfall Elimination Provision and the Government Pension Offset, which affected millions of retired public service workers.
- In the realm of politics, the implementation of the SSFA has brought about increases in spending, with experts predicting a potential 24% cut in Social Security benefits around 2034 if no further reforms are made due to financial concerns with the Social Security trust funds.
- In addition to policy-and-legislation matters, there have been concerns about service delivery, with reports suggesting that at least 7,000 employees might be laid off and offices potentially closed as part of cost-cutting measures. Moreover, IT budget cuts have led to website issues, preventing people from applying for benefits online.
- Amid these issues, President Biden has emphasized the importance of Social Security, calling it a sacred promise made as a nation, and addressing concerns in the General news regarding the Social Security Administration.
