Former US Social Security Chief Warns of Benefits Disruption and a System Collapse Within the Next 30 to 90 Days

Yesterday, the Social Security Administration (SSA) announced in a press release that it had identified over £629.94 million ($800 million) in cost savings or avoidance for FY 2025.

These cost-cutting measures will be implemented through workforce reduction, a hiring freeze, termination of contracts and grants, trimming of the IT systems budget, and shuttering of around 45 offices nationwide after their leases expire. The agency has also set a target to reduce the workforce to 50,000 employees from almost 57,000.

Former Social Security commissioner Martin O'Malley cautioned that the Department of Government Efficiency's (DOGE) cost-cutting plans for the SSA could lead to its collapse within the next 30 to 90 days. He recently told CNBC that DOGE-led reductions in funding and staffing have already fueled panic at the SSA.

'Ultimately, you're going to see the system collapse, and there will be an interruption of benefits,' he said. 'I think that will happen within the next 30 to 90 days.' He urged people to start saving now while noting that the intermittent IT outages could signal the system's growing instability.

The Agency's Collapse Could Have Political Repercussions

O'Malley added that a collapse of the Social Security system would trigger political repercussions, highlighting the long-term impact on workers who have paid into the system for decades.

'People are going to start bringing a lot of heat to members of Congress who have been enabling the destruction of Social Security and the interruption of earned benefits,' he explained.

Democrats Denounce The Trump Administration's Plans For SSA

Yesterday, Senate Democrats like Chuck Schumer of New York and Patty Murray of Washington held a press conference to criticise the Trump administration and DOGE's attempt to 'destroy' the agency.

'It is hard to believe that the Trump administration wants to cut Social Security, but that's what's happening,' Schumer said. 'We're in a pincer move that shows just what they're up to,' he added, citing the agency's plan to terminate thousands of workers and Musk's comments decrying the program as a 'Ponzi scheme.'

'The Trump administration is putting Social Security benefits at risk by firing the staff who help beneficiaries and closing down the offices that serve communities across the country,' House Minority Leader Hakeem Jeffries stated last week.

The recent departure of Social Security's acting commissioner, Michelle King, after a dispute with DOGE over access to sensitive records of Americans also shook the agency. US President Donald Trump has tapped Fiserv CEO Frank Bisignano as the new commissioner, but the Senate has yet to confirm the appointment.