Proposed job cuts for the Social Security Administration

Last week, the Social Security Administration (SSA) announced plans to reduce its workforce by about 12%, or approximately 7,000 employees. It’s also proposed closing six of its 10 regional offices. These announcements follow the resignation of the administration’s acting commissioner in mid-February.

• Currently, the SSA employs about 57,000 people, including: 
  • Direct public service workers who authorize benefits and manage claims 
  • Attorneys, paralegals, and legal advisors 
  • Grant and contract managers 
  • Employees in finance, human resources, information technology, and administrative support 
    
    
• The SSA’s headquarters is in Baltimore. Its regional offices oversee 1,231 local field offices, where people can enroll in programs, check their earnings records, get information about their rights and eligibility, and apply for a Social Security number.  
  
  
• As of January, 68.6 million people received Social Security benefits: 
  • 52.0 million retired workers and their 2.6 million dependents
  • 7.2 million disabled workers and their 1.1 million dependents
  • 5.7 million survivors, or family members of deceased workers 

• SSA expenditures totaled $1.5 trillion in fiscal year 2024, making it the second-largest federal agency and accounting for 22.4% of total federal spending. Administrative costs, including employee salaries and benefits, building rentals, and equipment, are less than 1% of the SSA’s budget. 

• Social Security relies on payroll taxes from current workers (and matching employer contributions) to go into trust funds. And these trusts pay current beneficiaries. The Social Security trust funds were valued at $2.7 trillion as of the end of 2024 thanks to those payroll taxes, plus taxes on benefits and interest earnings.  
  
  
• Total SSA spending has increased by 212.3% since 1980, outpacing overall federal spending growth, which rose by 193.7%. With an aging population, the SSA projects that the Social Security Trust Fund would be exhausted by 2035 without intervention.