The Social Security Administration (SSA) reversed plans to curtail phone services for millions of Americans following a report detailing pressure from the Department of Government Efficiency (DOGE), a Trump administration initiative led by Elon Musk. The initial proposal, aimed at eliminating telephone support for claims processing and direct-deposit transactions, would have forced retirees and disabled individuals to rely solely on online services or in-person visits to field offices.
SSA officials confirmed Wednesday that, while the broader cuts would not move forward, a narrower policy barring changes to direct-deposit information over the phone would take effect at the end of March. "Approximately 40 percent of Social Security direct deposit fraud is associated with someone calling SSA to change direct deposit bank information," the agency said in a statement. "The current protocol of simply asking identifying questions by telephone is no longer enough to prevent fraud."
The about-face followed a report in The Washington Post exposing the extent of DOGE's influence over the SSA, including efforts to slash 12% of its workforce as part of a broader campaign to root out "fraud, waste, and abuse." Critics argue that DOGE's aggressive downsizing threatens to disrupt vital government functions, including the administration of Social Security benefits.
Musk, a vocal proponent of reducing government spending, has repeatedly claimed-without evidence-that Social Security is rife with fraudulent payments. "Most of the federal spending is entitlements," Musk told Fox Business this week. "That's the big one to eliminate." He also falsely alleged that "20 million people who are definitely dead" remain on Social Security's rolls. SSA officials quickly refuted the claim, explaining that the figures reflect outdated records rather than actual payments to deceased individuals.
President Donald Trump, speaking in Florida last month, echoed similar claims, stating, "We have millions and millions of people over 100 years old" receiving Social Security benefits fraudulently. The comments align with ongoing Republican efforts to implement sweeping budget cuts, including a $4.5 trillion tax reduction plan that the Congressional Budget Office warns would be impossible without reductions to Medicaid, Medicare, and Social Security.
DOGE, responding to criticism of the proposed cuts, defended the push for reform. "Social Security is protecting our seniors by ensuring bank accounts aren't changed with little to no authentication," the agency stated on X. "This is identical to the fraud protections at almost all major banks."
The SSA's phone service remains a critical resource for many of the 73 million Americans who rely on its programs. Long wait times and limited accessibility to in-person offices have led to widespread reliance on telephone support, particularly among older Americans and those with disabilities who may struggle with online systems. Experts warn that restricting services could disproportionately impact vulnerable populations.
Paul Barrett, deputy director of the Stern Center for Business and Human Rights at New York University, said Musk's approach to government reform mirrors his past business tactics. "His playbook has now become quite clear. It is an extraordinary game he plays of wrecking institutions in order to dominate them."
The controversy surrounding the SSA cuts is part of a larger effort by the Trump administration to reduce the federal workforce and reshape government agencies. Musk's DOGE initiative, which has spearheaded cost-cutting measures across multiple agencies, has been accused of prioritizing ideological goals over functional governance.
Despite Musk's claims of rampant fraud, internal SSA records obtained by The Washington Post indicate that fraudulent payments account for only a small fraction of overall Social Security expenditures. The agency has long implemented fraud detection measures, including in-person identity verification and routine audits.
