The Social Security Administration (SSA), a lifeline for millions of retirees in the United States, is bracing for potential disruptions in 2025 if lawmakers fail to resolve a funding impasse before the year ends. At the heart of the issue is a critical budget anomaly requested by the Biden administration, which seeks to increase the SSA’s annual funding from $14.2 billion in 2024 to $15.4 billion in 2025. However, this proposal has been met with resistance, primarily from House Republicans, complicating efforts to maintain smooth operations.
Budget stalemate and its immediate consequences
In November 2024, the SSA implemented a hiring freeze following Congress’s denial of additional funding in the September continuing resolution. These resolutions temporarily keep government operations running but do not address long-term funding needs. The SSA’s spokesperson highlighted the precarious situation, stating that without increased appropriations, employees could face up to 10 furlough days, leading to office closures and reduced service levels.
“This means our field offices, card centers, and the National 800 Number would have reduced levels of service and further delay critical services that the public depends on,” the spokesperson told a news blog.
Record-high demand meets record-low staffing
The SSA is already under immense pressure, handling services for approximately 74 million beneficiaries—an increase of over 7 million since 2015—with 6,000 fewer full-time staff members. This staffing shortfall is compounded by the lack of funds to invest in new information technology systems or maintain overtime work hours.
“We have been forced to restrict hiring to critical targeted areas and will not be able to invest in new information technology development,” another SSA spokesperson shared in a blog post. “In addition, we have reduced overtime to historically low levels and essentially have no overtime to serve the customers who are waiting in our lobbies late in the day or to clear workloads that we are unable to get to during core hours of operations.”
Impact on beneficiaries
For millions of retirees who depend on Social Security benefits, delays in services could be more than an inconvenience—they could be life-altering. From filing claims to resolving issues, beneficiaries might face prolonged wait times and heightened stress.
“The loss of over 2,000 SSA employees will make it harder for people to get help, whether they’re filing a claim, fixing an issue, or just trying to speak to someone for guidance,” said Antwyne DeLonde, founder of VisionX Finance and former financial adviser, in an interview with Newsweek. “Long wait times and backlogs can turn what should be a straightforward process into a stressful and frustrating ordeal, especially for those who are already stretched thin financially or emotionally.”
Progress at risk
Under the leadership of former Commissioner Martin O’Malley, the SSA made notable strides in improving customer service. For instance, average wait times on the agency’s 800-number hotline were slashed from 42 minutes in November 2023 to just 16 minutes by November 2024. The SSA’s goal is to further reduce this to an average of 12 minutes by the end of fiscal year 2025, but this progress is contingent on adequate funding.
“We’re putting into place new technology and business practices so we can shorten wait times even more and improve the customer experience,” the SSA noted in a November blog post.
What happens next?
If no agreement is reached, the repercussions will ripple through millions of households relying on Social Security. Lawmakers have little time to act, and the stakes couldn’t be higher for retirees who depend on timely and efficient services from the SSA.
