Social Security is under significant strain. Due to budget cuts and an increase in the number of beneficiaries, the quality of service provided by Social Security is not up to par, particularly when considering the sheer number of beneficiaries.
Administration Chief Martin O’Malley confirmed in the first House SSA hearing in ten years that customer service is at its lowest point in the 89-year history of Social Security.
Social Security Commissioner Martin O’Malley told the House Appropriations Committee on November 20 that at least 30,000 people died while waiting for their disability reviews in 2023. He and many others have been warning about this funding problem for years.
Since Commissioner O’Malley resigned to run for the Democratic National Convention chair, the Social Security Administration has made no progress in restoring funding for staffing and increasing funding for updating technology.
Not only has the budget not increased, but it has undergone multiple cuts. The most recent cut was a $500 million cut to the budget for the Social Security Administration in July.
The House Appropriations Committee recently made the biggest budget cuts in its history. As a result, fewer people are working, and more people are applying for Social Security than ever before. This situation, where beneficiaries die without receiving their deserved help, is terrible news for everyone.
“We cannot stand by and watch this agency crater,” Commissioner O’Malley said. The people of the United States have worked their whole lives to make sure Social Security would be there for them.
Social Security has reserves of $2.7 trillion, of which only 0.3% is available for administrative costs. This implies that staffing consumes 75% of the available funds. Commissioner O’Malley has requested that the committee increase the available amount to 1.2%, as it is insufficient to sustain the agency.
According to Rep. Rosa DeLauro, D-Conn., cuts to the SSA budget that don’t help lower the deficit are the same thing as cuts to Social Security benefits. Commissioner O’Malley asks rhetorically, “What good are benefits if you can’t get through on the phone to access them?”
As always, GOP lawmakers were against bringing back the staffing budget to a reasonable level because the SSA lets employees work from home two days a week.
To defend his staff, Commissioner O’Malley told lawmakers that work had gotten 6% more done and that some claimants now preferred to meet over the phone.
According to Karl Polzer from the Center on Capital and Social Equity, Social Security’s trust fund will run out in 2035. The agency has warned Congress that inaction will result in a 20% benefit cut, a major issue.
In the past, Social Security collected more than it paid out. The money has been going out more than coming in since 2021.
The future of Social Security
The organization has set a new goal of 215 days of wait time, which is less than the current average of 243 days. However, people in Georgia must wait 14 months for their disability evaluation, indicating a need for further action.
Commissioner O’Malley wanted a one-time investment of $5 billion to bring the systems up to date for the future. Commissioner O’Malley also proposed an additional $600 million annually for fixed costs to prevent staff reduction due to attrition.
He said, “One of my biggest worries about leaving this agency next Friday is that old IT systems will either completely break down or be shut down by bad people.”
He pleaded with the House Appropriations Committee to return the denied money to their constituents. “I know you’ve heard their cries and received their calls.”