Social Security Issues: Flurry of Changes Sparks Confusion

Social Security Issues: Flurry of Changes Sparks Confusion

A slide-show look at several recent matters related to customer service, eliminating fraud and updates on leadership and the 2026 COLA

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While President Trump’s tariff-infused trade wars and resulting market volatility has commanded the news cycle this week, a number of issues regarding Social Security have also created headlines in recent weeks. Here’s a look at some of the more notable ones.

SSA Launches Anti-Fraud Check for Phone Claims

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Starting April 14, the Social Security Administration announced on X it will begin automated anti-fraud checks on all claims filed by phone.

Claims flagged for fraud risk will require in-person identity verification at a Social Security office. Claims not flagged can proceed entirely over the phone, preserving access for most users.

The SSA previously proposed requiring all claimants without a “My Social Security” account to verify their identity in person, effectively ending phone-based applications for many. The plan drew strong criticism from AARP and disability advocates for disproportionately affecting older adults and people in rural areas.

White House officials defended the change at first, adding that its intent was to eliminate fraud and save money. SSA Acting Commissioner Lee Dudek said the change could have saved the agency as much as $100 million annually, despite that being less than a tenth of a percent of the agency’s budget.

SSA reversed course, ensuring that phone applications remain available for all benefit types, including retirement, family, survivor, SSDI, SSI, and Medicare.

“We have listened to our customers, Congress, advocates and others, and we are updating our policy to provide better customer service to the country’s most vulnerable populations,” Dudek said in a statement.

Advocates, including AARP’s Nancy LeaMond, AARP’s chief advocacy and engagement officer, hailed the move as a major win for access and customer service.

“This is great news for older Americans,” LeaMond said in an April 9 statement. “We look forward to further improvements in their customer service.”

LeaMond had written an April 7 letter to acting SSA Commissioner Lee Dudek citing multiple reports of website outages, long lines at field offices, and hours-long waits for people to get help from Social Security on the phone. LeaMond noted the ID plan, which the SSA estimated would drive 75,000 to 85,000 more office visits a week, would “only exacerbate the ongoing customer service crisis.”

About 6 million Americans ages 65 and over live more than 45 miles roundtrip from their nearest Social Security office, according to an April 8 report from the Center on Budget and Policy Priorities.

In March, the SSA cut its staff by over 7,000 SSA workers, potentially contributing to the lengthening standby times.

NEXT PAGE: SSA Move to Spur Self-Deporting

SSA Lists Immigrants as Deceased to Spur Self-Deporting

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In a development first reported this week by The New York Times, the Social Security Administration initiated a process this week to classify thousands of non-citizen immigrants holding temporary legal status and valid Social Security numbers as deceased.

This administrative reclassification effectively cancels the individual’s Social Security number (SSN), which could potentially block access to any government benefits they might be entitled to and lead banks and other institutions to cut off access to accounts and credit for those affected.

The SSA recently renamed its “death master file” used to track deceased individuals and prevent improper benefit payments to the “ineligible master file.” According to the Associated Press, the first cohort added to this “ineligible master file” included over 6,000 immigrants who entered the United States through a parole program instituted under former President Joe Biden.

The AP story, citing two officials familiar with the moves and their ramifications, said stripping the immigrants of their Social Security numbers and cutting them off from many financial services is intended to encourage them to “self-deport” and abandon the U.S. for their birth countries.

NEXT PAGE: Bisignano’s Nomination Status to Lead SSA

Bisignano Still Awaiting Full Senate Vote to Lead SSA

Frank J. Bisignano. Image credit: Fiserv

As of April 11, Frank Bisignano’s nomination to be Commissioner of the Social Security Administration (SSA) is awaiting a full Senate vote. After his nomination by President Trump in January, Bisignano underwent a confirmation hearing before the Senate Finance Committee on March 25, 2025. The committee subsequently voted 14-13 along party lines to advance his nomination on April 2, 2025.

Following news of his advancement, Sen. Ron Wyden (D-OR) lambasted Republican leaders for advancing the vote without investigating an anonymous whistleblower letter that accused Bisignano of pushing the Social Security Administration to onboard Department of Government Efficiency (DOGE) officials and lying to committee members. Sen. Wyden had previously called for a delay on the vote until after a committee investigation.

Finance Committee Chairman Sen. Mike Crapo (R-IA), who voted to advance Bisignano, said in statements prior to the vote that his staff is “open to meeting with the author of the letter and keeping the individual anonymous,” though he had declined to delay the voting process.

Bisignano, on his part, wrote to the committee in writing that he had not yet acted in a SSA role and was not involved in any decision-making process led by acting SSA commissioner Lee Dudek.

Senate Democrats also questioned whether Bisignano was an ideal fit to lead one of the largest U.S. agencies. Sen. Wyden said Bisignano had “made a career of swooping in, firing workers, selling off pieces of the company and merging with a competitor,” which “may be good for shareholders, but they hurt American families.”

Following his committee confirmation hearing, Nancy Altman, president of advocacy group Social Security Works, released a statement criticizing Bisignano’s nomination. “Every Senator who cares about Social Security’s future should vote no on the confirmation of Frank Bisignano. He is not only unqualified, with no expertise regarding this vital program—he is dangerous to it,” stated Altman.

Bisignano, who is the current CEO of fintech and payments company Fiserv, also previously led payments processor First Data Corp. and was the prior co-chief operating officer and chief executive officer for mortgage banking at JPMorgan Chase.

Bisignano has previously stated that if confirmed, he would collaborate with DOGE officials on an “efficiency and quality agenda” to “bring to Social Security.” He told CNBC in February that he would “100%” work with DOGE, calling himself a “fundamentally DOGE person.”

NEXT PAGE: Confusion Over SSA Office Closure Reports

SSA, DOGE Cause Confusion in Office Closure Reports

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The Social Security Administration (SSA) issued a press release March 27 accusing media reports of falsely spreading allegations that it had closed dozens of agency offices throughout the U.S.

In a statement on its website, the SSA said it “has not permanently closed or announced the permanent closure of any local field office” since January 1, but admitted that it has indefinitely closed a hearing office located in White Plains, NY.

Instead, the agency added that it may temporarily close local field offices due to weather, damage, or facility issues, but will reopen the offices once the issues are resolved.

“SSA is committed to providing service where people need help and our local field offices are no exception,” said Lee Dudek, acting commissioner of the Social Security Administration, in a statement. “We have not permanently closed any local field offices this year.”

Further, the agency said it provided to the General Services Administration a list of “underutilized office space” for termination, as most hearings are held virtually. “Most of these are small hearing rooms with no assigned employees. Since most hearings are held virtually, SSA no longer needs these underutilized rooms,” the agency wrote in its statement.

The release comes as the Associated Press reported last month that SSA offices were anticipated to close due to interruptions posed by the Department of Government Efficiency (DOGE). De facto DOGE leader Elon Musk has stated his intentions to downsize the agency and eradicate “fraud and waste” by cutting jobs and terminating leases.

DOGE had previously published a list of hundreds of federal real estate leases it said it had planned to close—47 of which are SSA offices in 18 states. Of the 47 listed, 26 are expected to close in 2025. These locations include a couple to several offices in North Carolina, Texas, New York, Mississippi, and Arkansas.

In its analysis, the AP found that of the offices to be closed this year, only a few had proposed closed dates ready.

NEXT PAGE: 2026 COLA Forecast Update

Tariff-Spurred Inflation Could Boost 2026 COLA Raise

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There was little change in the 2026 Social Security COLA forecasts from the two sources providing monthly updates this week, based on the latest inflation data released April 10.

Independent Social Security and Medicare policy analyst Mary Johnson kept her forecast at 2.2% for the 2026 COLA, while The Senior Citizens League bumped its forecast up slightly from 2.2% to 2.3%. Both sources noted that their forecasts could be headed up later this year due to potential inflationary impacts from President Trump’s tariffs.

“Along with most economists, TSCL expects the new tariffs to lead to higher inflation. Our COLA model will likely reflect that in coming months as the CPI-W and other economic indicators respond to the new import tax policies,” TSCL Executive Director Shannon Benton said.

“Placing broad-based tariffs on goods from numerous countries could have a profoundly negative impact on the daily lives of seniors, including the costs of drugs and medical equipment that many seniors rely on. It is also highly likely that import taxes will keep food prices high, increase auto insurance costs, and contribute to higher inflation, among other effects,” she added.

“While TSCL supports President Trump’s goals of returning manufacturing and strategic production to American shores, we can’t accept the short-term consequences for seniors. We call on the administration to immediately make exceptions to the tariffs for drugs, medical equipment, and essential everyday goods that many seniors already struggle to afford,” she added.

Johnson said her current 2.2% forecast may underestimate the final 2026 COLA because Trump Administration tariffs would raise consumer prices. While most of the tariffs were temporarily paused, a trade war with China or higher tariffs with other trading partners, would cause higher inflation. That could push COLAs higher as well, Johnson said.

“Higher sticky consumer prices, home repairs, changes in health are forcing older consumers to spend more from savings at a faster rate, at the same time extreme stock market volatility pummels the value of retirement account holdings,” Johnson, an independent Social Security and Medicare policy analyst, said Thursday. “Market convulsions like what we are seeing now can spook consumers causing them to put off discretionary purchases, especially bigger ones. This could mean slower economic growth or even a recession.”

The Social Security Administration is expected to officially announce the 2026 COLA on Oct. 15, 2025.

SEE ALSO:

• 2026 Social Security COLA Forecasts Hold Steady, But Tariffs Could Bump Them Up Later

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