Ann Arbor Times

A University of Michigan professor has provided an analysis of the Trump administration's proposal to reduce the workforce at the Social Security Administration (SSA). Pamela Herd, a professor of social policy at the Ford School of Public Policy and a faculty associate at the Institute for Social Research’s Population Studies Center, has expressed concerns about these planned layoffs.

Herd emphasized the importance of Social Security, describing it as "our biggest and most successful safety net program." She noted that "the annual $1.6 trillion in benefits constitutes 21% of federal spending and 40% of older adults’ income." The proposed plan from the Trump administration involves significant reductions in staff, with leadership suggesting cuts to 7,000 employees out of a total workforce of 57,000.

According to Herd, Social Security is already operating efficiently. She pointed out that "the percentage of Social Security spending devoted to administration has actually steadily declined, from 2.2% in 1957 to just 0.5% today." Despite this efficiency, she warned that further cuts could impact service delivery.

"As the number of people the agency has served has steadily grown, the agency’s administrative capacity has been steadily declining," she said. This is particularly concerning for individuals with disabilities who face extended wait times for eligibility confirmation.

Herd explained that maintaining operations requires processing monthly payments for 73 million beneficiaries, issuing Social Security numbers for approximately 10,000 newborns daily, initiating benefits for new retirees, and ceasing payments for deceased beneficiaries. Furthermore, computer systems require updates and audits while payment systems must remain functional.

She concluded by stating that "this scale of cuts almost certainly means the agency will struggle to ensure payments are made on time and wage records are accurately collected, stored and kept secure."