The Social Security Administration (SSA) is prioritizing around 900,000 complicated cases this month. This could lead to delays or stopped payments for thousands of Americans. Nearly 70 million people rely on Social Security payments each month to cover essentials such as housing and food.
The changes aim to address a backlog of complex cases, but this may result in longer wait times for simpler updates, such as address or bank account changes. The Social Security Fairness Act provides benefits to public servants, such as police officers, firefighters, and teachers, who have paid into the system but were previously ineligible. Over 2 million cases were automated, but 900,000 claims are more complex and require manual approval.
The White House states that the focus on these cases should not impact current beneficiaries.
Prioritizing Fairness Act claims
However, SSA employees indicate it could delay other services, such as updating direct deposit information or addressing Medicaid billing issues.
The new directive to prioritize Social Security Fairness Act claims, along with staffing cuts enacted by the Department of Government Efficiency (DOGE), is creating a backlog to complete other claims and service work,” said Drew Powers, founder of Powers Financial Group. The Department of Government Efficiency has reduced the SSA staff by 12 percent and offered buyouts for early retirement. The remaining workers are being provided with weekend overtime to process claims.
Alex Beene, a financial literacy instructor, advised, “As of right now, there is no need for concern, but beneficiaries should start the process of enrolling, making changes, or anything else as soon as possible. Most importantly, be prepared to wait.”
The SSA has a deadline to update the remaining Social Security Fairness Act claims by July 1, which is contributing to the backlog. The impact of these changes on beneficiaries is yet to be fully understood as employees grapple with the new directives.