In a news release, the Social Security Administration (SSA) said that it has found ways to save or “avoid costs” worth more than $800 million in fiscal year 2025. These ways include cutting back on IT, grants, property, and wages.
The SSA said it stopped hiring new people and “dramatically” cut back on overtime to save $550 million.
The government office in charge of Social Security said it cut the budget for information technology systems (ITS) by $150 million by ending “non-essential contracts and identifying reductions in other ITS contracts.”
Acting SSA Commissioner Lee Dudek said Monday night that the company has been “on autopilot” for too long.
In a statement, Dudek said, “We have spent billions of dollars every year doing the same things the same way. This has led to bureaucratic stagnation, inefficiency, and a lack of meaningful service improvements.” “That needs to be changed right now.”
The SSA said that it cut travel by 70%, which saved the society $10 million. The government body also said it was ending grants and contracts worth $15 million.
Postage, printing, protective security guards, and property are some of the other things that the SSA has cut back on.
It was announced last week that the SSA will be reducing its staff by a large amount as part of a “agency-wide organizational restructuring.” Reports from The Associated Press say that up to 7,000 workers will be let go.
The SSA said that offices within the agency that do work that isn’t “mandated by statute” could be targeted for “reduction-in-force actions,” which could include getting rid of groups and positions, directing reassignments, and lowering staffing.
The planned layoffs come at a time when President Trump’s administration is firing more federal government workers, especially those on probation. In the last few weeks, about 20,000 people have been fired.
The Department of Government Efficiency recently cut back on the Social Security Administration (SSA). Former SSA Commissioner Martin O’Malley said that these cuts could cause the system to “collapse” “within the next 30 to 90 days.”
O’Malley said, “In the end, the system will fall apart and benefits will cut off.” “I think that will happen in the next 30 to 90 days.”
