Social Security Administration Underfunded by Congress

The Social Security Administration is there for Americans when they are at their most vulnerable. When Americans are going through retirement, the death of a loved one, or are faced with a life-changing disability, they should not have to struggle to secure benefits.

Americans paid for these benefits while they were working via their Social Security payroll taxes. However, due to the severe budget cuts, the Social Security Administration’s (SSA) operating funds decreased by 11% since 2010 (adjusted for inflation). The SSA has also closed over 60 field offices and 500 mobile offices because of budget cuts. Around 16,000 claimants waited over an hour for in-person services in August of 2017. SSA has cut back on the number of Social Security Statements mailed out to both current and future beneficiaries. In 2010 the number was 153 million. By 2017, this number was down to just 10 million. Now only workers above the age of 60 who do not have an online My Social Security account will receive mailed statements.

Because of these cuts, far too many applicants have to go through long hold times or busy signals. In 2010 the wait time was just three minutes. Now, the average wait time is 18 minutes.

There are also long waits for disability hearings. The average wait time for a disability insurance hearing in August 2017 was 627 days. These waits are so long that thousands of disabled Americans die each year while they wait. It was reported that 10,000 disabled Americans died while they waited for their hearing in fiscal 2017. At the same time, each day around 10,000 Baby Boomers become eligible for Social Security retirement benefits.

Senator Bernie Sanders (I-Vt.) believes that Congress is “making a very bad situation even worse,” by considering budget cuts to the SSA. He does not consider these measures to be cost saving, but rather a step that could destroy Social Security.

All of these statistics and realities should send a message to Congress. It is undeniable that the budget cuts to the SSA put children, families, and disabled Americans that rely on Social Security at risk. To make matters worse, the 2018 budget proposal from President Trump decreases the SSA’s funding even more. The Senate Appropriations Committee proposed a severe reduction of around $460 million which is almost 4% of the SSA’s operating budget. Also, the House-approved 2018 fiscal appropriations legislation would keep underfunding the agency, therefore freezing the SSA’s operating budget for another year.

Interestingly, the Social Security Administration is one of the most efficient federal agencies. The agency’s total administrative expenses are less than 1% of the total benefits program. The agency is funded by workers’ payroll contributions rather than from general revenue. This makes it extremely unfair to cut SSA’s funding to help offset other federal expenditures.

With all of that in mind, why are they still cutting the agency’s budget? Some believe they are doing this in order to dismantle Social Security. They may be hoping to destroy the public’s confidence in the SSA. If enough people are frustrated by poor service, they may turn against Social Security itself. If that happens, it would be easy to cut the benefits entirely in the future.

It is time for Congress to step up and adequately fund SSA. It is necessary for them to perform vital tasks without delays for the public. Rather than decreasing their funding, the SSA’s operating budget should be increased so the agency can do its job for the American people.