The Social Security crisis, briefly explained

A sign in front of the entrance of the Security Administration’s main campus in Woodlawn, Maryland. | Kayla Bartkowski/Getty Images

The Social Security Administration — which distributes benefits to tens of millions of retired workers, people with disabilities, and their families — is in crisis.

Since billionaire Elon Musk’s Department of Government Efficiency (DOGE) set its sights on finding fraud in Social Security, the agency has been trying to shed 12 percent of its workforce, or 7,000 workers. Leland Dudek, who took over as acting commissioner of the Social Security Administration in February, has pushed out officials and prompted others to resign in protest of his leadership. He has canceled research contracts with universities, including one that studied demographic trends, and closed six regional offices.

Plus, the agency recently announced that it will soon no longer allow claimants to verify their identity on the phone, instead requiring them to go online or to field offices in person, a move that would likely delay people’s benefits from being delivered.

As a result, field offices have gotten so understaffed that managers have doubled up as receptionists, answering calls at the front desk because there aren’t enough people to handle the phones, according to the report in the Washington Post. Phone lines have been jammed, with beneficiaries waiting as long as four or five hours to connect with a customer service representative. Congressional offices and the AARP have noted a spike in calls from constituents concerned about their Social Security benefits. The Social Security Administration’s website has also crashed several times.

This is all happening because of Trump officials’ insistence that Social Security is mired in fraud. Trump and Musk have both falsely claimed that a large number of people who have been dead for decades are still receiving social security benefits. Despite those claims, experts say that the Trump administration is vastly overstating the problem. A federal judge who stopped Musk’s team from gaining access to sensitive personal data said that DOGE “has launched a search for the proverbial needle in the haystack, without any concrete knowledge that the needle is actually in the haystack.”

The current mess was largely anticipated. Martin O’Malley, the former Democratic governor of Maryland who served as Social Security commissioner during the Biden administration, has warned that DOGE’s actions threaten to collapse the system and interrupt benefits.

Trump has claimed that he will not cut Social Security. But his administration’s assault on Social Security (all under the guise of going after fraud, waste, and abuse) has critics worried that he’s putting Social Security onto a path toward privatization.

Trump administration officials have also acknowledged a potential disruption in Social Security payments. Commerce Secretary Howard Lutnick, for example — a billionaire and former Wall Street executive — claimed that people wouldn’t complain if they don’t receive their Social Security payments, saying that only those committing fraud would try to raise concerns. “Let’s say Social Security didn’t send out their checks this month. My mother-in-law, who’s 94, she wouldn’t call and complain,” he said in a podcast interview. “She just wouldn’t. She’d think something got messed up, and she’ll get it next month. A fraudster always makes the loudest noise, screaming, yelling, and complaining.”

The reality, however, is that millions of people rely on Social Security to make ends meet. The program lifts more than 20 million people out of poverty each year — more than any other federal program. So if the Trump administration doesn’t quickly pull Social Security out of this crisis, a whole lot of people will complain. And Lutnick will soon find out that his prediction is likely to be very, very wrong.

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Extreme new Trump admin rules threaten to shutter even more hospitals



A pair of extreme new Trump administration rules aimed at functionally banning gender-affirming healthcare for transgender youth could force even more hospitals to close down.

NPR reported Thursday that the Department of Health and Human Services (HHS) drafted a proposed rule that would prohibit federal Medicaid reimbursement for medical care provided to transgender patients younger than 18 and prohibit the same from the Children’s Health Insurance Program (CHIP) for patients under 19.

Another proposed rule goes even further, blocking all Medicaid and Medicare funding to hospitals that provide gender-affirming care to youth.

As Erin Reed, an independent journalist who reports on LGBTQ+ rights, explained, this “would effectively eliminate access to such care nationwide, except at the few private clinics able to forgo Medicaid entirely, a rarity in transgender youth medicine.”

The policies are of a piece with the Trump administration and the broader Republican Party’s efforts to eliminate transgender healthcare for youth across the country.

Bans on gender-affirming care for those under 18 have already been passed in 27 states, despite evidence that early access to treatments like puberty blockers and hormones can save lives.

As Reed pointed out, a Cornell University review of more than 51 studies shows that access to such care dramatically reduces the risk of suicide and the rates of anxiety and depression among transgender adolescents.

The new HHS rules are being prepared for public release in November and would not be finalized for several more months.

But if passed, the ramifications could extend far beyond transgender people, impacting the entire healthcare system, for which federal funding from Medicare and Medicaid is a load-bearing piece. According to a report last year from the American Hospital Association, 96% of hospitals in the US have more than half their inpatient days paid for by Medicare and Medicaid.

It is already becoming apparent what happens when even some of that funding is taken away. As a result of the massive GOP budget law passed in July, an estimated $1 trillion is expected to be cut from Medicaid over the next decade. According to an analysis released Thursday by Protect Our Care, which maintains a Hospital Crisis Watch database, more than 500 healthcare providers across the country are already at risk of shutting down due to the budget cuts.

Tyler Hack, the executive director of the Christopher Street Project, a transgender rights organization, said that the newly proposed HHS rule would be “forcing hospitals to choose between providing lifesaving care for trans people or maintaining the ability to serve patients through Medicare and Medicaid.”

“Today’s news marks a dangerous overreach by the executive branch, pitting trans people, low-income families, disabled people, and seniors against each other and making hospitals choose which vulnerable populations to serve,” Hack said. “If these rules become law, it will kill people.”

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