What’s coming next?
So far, the DOGE has shuttered the U.S. Agency for International Development (USAID) and ordered workers at the Consumer Financial Protection Bureau (CFPB) to stop work until further notice. It has initiated layoffs at multiple other federal agencies and departments. There is concern Medicare, Medicaid and Social Security won’t be far behind.
Also noteworthy is that Russell Vought, who has returned to the White House Office of Management and Budget for a second term under President Donald Trump, is considered a key architect of Project 2025 and has repeatedly pushed cuts to Social Security.
On Jan. 31, Treasury Secretary Scott Bessent granted Musk and his DOGE team access to the Treasury Department’s payment infrastructure, which processes and distributes trillions of dollars every year for Social Security, Medicare, federal salaries and government contracts.
This has since resulted in a slew of lawsuits; court judgements have blocked DOGE’s efforts to access Treasury Department records — for now.
Jonathan Blum, a Treasury official, stated in a letter that the DOGE team was only given “read only” access to the system. However, read-only access can still offer up data about how the Treasury processes payments, which could include Social Security benefits. That has some lawmakers and consumer advocates raising alarms.
“Controlling the system could allow the Trump Administration to ‘unilaterally’ — and illegally — cut off payments for millions of Americans, putting at risk the financial security of families and businesses based on political favoritism or the whims of Mr. Musk and those on his team who have worked their way inside,” Sen. Elizabeth Warren, a Democrat from Massachusetts, said in a letter to Bessent.
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Learn MoreShould Americans be concerned?
Years ago, Trump called for privatizing Social Security, which he referred to as a “Ponzi scheme” in his 2000 book, "The America We Deserve." More recently, while on the campaign trail, Trump said he wouldn’t touch Social Security. He also proposed eliminating taxes on Social Security benefits.
There’s no indication at this point that Social Security checks will be late (or cancelled). But there is concern that staff cuts or buyouts could strain an already-strained system. The SSA is already struggling with staff shortages that result in long wait times and lower service levels. More cuts could also put local offices at risk of closure.
Some advocates worry about the potential for corruption or mistakes if beneficiaries’ data isn’t protected.
Musk’s goal “is reportedly to turn off payments to programs (or individuals) he deems unworthy which is illegal, and very dangerous for Social Security, Medicare, and Medicaid,” Social Security Works, a political advocacy group that seeks to expand Social Security and Medicare, told Think Advisor.
"If you have some DOGE guys - some 20-year-old - rummaging around for no legitimate reason, they could inadvertently erase data and reduce the Social Security benefits of people, and they could do a lot worse," said Nancy Altman, president of Social Security Works, to Morningstar.
If experienced staffers are laid off or furloughed, it could wreak havoc with an already complicated program.
While there’s some suggestion that artificial intelligence could replace some of these workers, the absence of AI guardrails and human oversight could produce life-altering errors. This is at a time when the Social Security program is already under pressure of a budget shortfall by 2035.
Any attempts to change Social Security would likely be met with litigation.
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