One significant change remains on the president’s agenda, which could cause considerable harm if enacted.
For the majority of retirees, Social Security serves as a crucial source of income. Over the past 23 years, national pollster Gallup has surveyed retirees to assess the importance of their Social Security income for financial stability. Consistently, between 80% and 90% of respondents have deemed their benefits necessary for covering expenses. However, Social Security is a dynamic program, with annual changes affecting how beneficiaries manage their information and the benefits they receive from the Social Security Administration (SSA).
Since President Donald Trump assumed his second term, as of April 29, several changes to Social Security have taken place. Here is a summary of the five major changes made under Trump’s administration and one significant alteration he aims to implement.
Administrative Cost-Cutting: One of Trump’s early actions was the creation of the Department of Government Efficiency (DOGE) through an executive order, aimed at reducing government spending with assistance from Tesla CEO Elon Musk. Consequently, the SSA is reducing its staff by 7,000 to 50,000 and closing some offices, saving over $800 million in 2025. Despite these savings, the amount is minor compared to the $1.392 trillion distributed by the SSA in 2023.
Elimination of Paper Checks: Trump signed an executive order to phase out paper Social Security checks, transitioning to electronic funds transfers by September 30, 2025. Approximately 486,000 beneficiaries currently receive paper checks. Trump’s rationale emphasizes that digital payments are more efficient and less susceptible to fraud.
Enhanced Identification Methods: New rules under Trump’s administration require that changes to direct deposit information and benefit applications be made online or in person, using two-factor authentication or at SSA offices. This change seeks to curb fraud and does not apply to terminally ill individuals or those soon released from prison.
Reversal of Biden-era Rules: Trump’s administration reversed former President Joe Biden’s policy on overpayment recovery. Previously, a 10% clawback rate was in effect, but Trump reinstated a 50% withholding rate. This change is expected to save the government around $7 billion over a decade.
- Nomination of a New SSA Commissioner: Trump nominated Frank Bisignano, CEO of Fiserv, as the new SSA commissioner. Bisignano’s understanding of digital payments will be critical as the SSA moves towards a paperless system. His nomination was advanced by the Senate Finance Committee.
One major change Trump still advocates is ending the taxation of Social Security benefits. By removing this tax, about half of all retired beneficiaries might see increased benefits. However, this change could have significant negative consequences. The tax on benefits, introduced as part of the Social Security Amendments of 1983, has become a critical funding source for the program. Removing it would leave a substantial gap in funding, exacerbating the projected depletion of the Old-Age and Survivors Insurance Trust Fund by 2033. Thus, ending the tax on benefits lacks financial viability for the sustainability of Social Security.
