5 Social Security Changes President Trump's Team Has Enacted So Far. How Might They Impact You?

Motley Fool
29 Mar
  • Social Security will require in-person identity verification in some cases, is cutting staffing, and closing some offices.
  • It's also eliminating paper benefit checks and significantly accelerating the recovery of overpayments.
  • The public could have better insight into internal operations and wait time trends with new transparency initiatives.

Some of President Trump's proposals that could impact Social Security have yet to be implemented. In particular, his plans to eliminate taxes on Social Security benefits, overtime, and tips could face an uphill challenge gaining congressional approval. The moves would accelerate how quickly the Social Security trust funds run out of money.

However, Social Security has already been impacted in the first two months of Trump's second term. Here are five Social Security changes his team has enacted so far -- and how they might impact you.

Image source: Getty Images.

1. In-person identity verification

Beginning April 14, individuals will no longer be able to apply for Social Security benefits or make changes to their direct deposit information over the phone. Instead, they will be required to either use their online my Social Security account or go to their nearest Social Security office to verify their identity.

This change was originally scheduled to go into effect on March 31. However, the Social Security Administration (SSA) received vocal criticism from advocacy groups, beneficiaries, and congressional representatives who expressed concerns that the new requirement would place hardships on some Social Security recipients, especially those in rural areas and with limited internet access.

SSA later pushed back the effective date by two weeks. It also exempted Medicare, disability, and Supplemental Security Income (SSI) applications from the new requirements. Acting Commissioner of Social Security Leland Dudek said the agency delayed the implementation to make sure employees were trained properly. He explained that the exemptions from in-person identity verification were made "because multiple opportunities exist during the decision process to verify a person's identity."

2. Staffing cuts and office closures

SSA announced plans to eliminate 7,000 positions, roughly 12% of its workforce. The agency said it would focus these staffing cuts on "functions and employees who do not directly provide mission-critical services." Along with these significant staffing reductions, SSA is closing, consolidating, or relocating 47 local Social Security offices. It's also restructuring operations to reduce the number of regional offices from 10 to four.

These changes could impact the wait times and processing times for anyone seeking help from Social Security. SSA's backlog has already increased in recent months. The agency is also already operating at its lowest staffing level in five decades, according to former Social Security Commissioner Martin O'Malley.

3. Elimination of paper benefit payment checks

Most Social Security beneficiaries receive their benefit payments electronically. However, roughly 456,000 Americans still receive paper checks. They won't be able to continue doing so for much longer.

An executive order signed by President Trump this week mandates that the federal government stop sending paper checks for any payments, including Social Security benefit payments. The change will be effective Sept. 30, 2025. Anyone who currently receives a paper check will need to set up direct deposit of their payments before then to avoid disruption in their benefits.

4. Overpayment recovery

SSA sometimes pays too much to Social Security beneficiaries. As of March 27, the agency will withhold 100% of a person's monthly benefit to recover these overpayments. It previously withheld 10% of monthly benefits until the overpayment was recovered.

This change could save the federal government around $7 billion over the next decade. The full withholding of monthly benefits isn't new, though: This policy was also in place during the Obama administration and the first Trump administration.

5. Transparency initiatives

Social Security beneficiaries could see more clearly how all these changes impact the SSA's customer service. The agency is implementing several initiatives that it says will "promote greater transparency and accountability." These initiatives include publishing Weekly Operational Report meetings on YouTube, publishing Social Security challenges and actions taken online, and increasing the amount of detail shared with the public on wait times.

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