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The US Capitol building in Washington, DC, on November 24, 2024.
Recent developments surrounding the Department of Government Efficiency under Elon Musk have raised alarms among Democratic lawmakers and various advocacy organizations. Musk’s department has gained access to a government payment system handling approximately $6 trillion in annual federal payments encompassing crucial benefits such as Social Security and Medicare.
In light of these changes, Congressional scrutiny has intensified. A letter from the Treasury Department reassured that this transition has not led to any delays or modifications in benefit payments.
Reports surfaced last week indicating that Treasury Secretary Scott Bessent had authorized access to the federal payment system to DOGE, a branch within the president’s executive office, focusing on enhancing efficiency and curbing federal expenditure.
Concerns about the implications for federal benefits and the sensitivity of Americans’ private information have been raised. Senator Elizabeth Warren, D-Mass., publicly criticized the decision, labeling it “extraordinarily dangerous” on the platform X, emphasizing the reliance of millions on these benefit systems.
The National Committee to Preserve Social Security and Medicare voiced similar worries, stating that beneficiaries have valid reasons to be apprehensive about the developments. Dan Adcock, the committee’s government relations director, highlighted that the actions of DOGE could redefine what is deemed efficient and jeopardize essential lifelines for seniors and individuals with disabilities across the nation.
Under Musk’s leadership, there are fears that benefits like Social Security Disability Insurance could be at risk, alongside other essential services such as Medicaid or Meals on Wheels. Lindsay Owens, from the Groundwork Collaborative, noted that federal contracts and foreign aid disbursements could also potentially be affected.
The prospect that an unofficial individual, without Senate confirmation, now manipulates the Treasury payment system while handling sensitive financial data is viewed as alarmingly precarious by Owens.
Conversely, a White House official described many of the concerns regarding DOGE’s access as exaggerated. According to the official, the focus is on restructuring the payment system to align with the President’s initiatives and executive orders, assuring that disbursements for programs like Social Security and Medicare remain unaffected by this restructuring. The official dismissed claims otherwise as misleading.
Furthermore, access to personal information is reportedly confined to government personnel with the necessary clearance, maintaining security protocols amidst the changes.
A Treasury Department communication also affirmed that the ongoing review of the Federal payment systems has not led to any interruptions in benefits such as Social Security or Medicare. It elaborated that staff associated with the Treasury’s Tom Krause would have limited access, ensuring operational assessments without compromising sensitive information.
Federal Buyout Program May Impact Social Security
In an additional context, the Trump administration has initiated a buyout program for federal employees, allowing them to resign while receiving pay through September. Although reports suggested that around 20,000 employees had accepted buyouts, a spokesperson from the U.S. Office of Personnel Management indicated this figure may be outdated, with a surge in resignations expected as the deadline approaches.
This buyout program could adversely affect the Social Security Administration, an agency already grappling with staffing challenges. A group of Democratic Senators voiced their concerns in a recent letter, warning that the program could significantly hinder the agency’s ability to serve the millions who depend on Social Security.
Sen. Kirsten Gillibrand, D-N.Y., stated that the buyout offer could have catastrophic repercussions for those relying on Social Security services. The Senators pointed out the existing struggles within the agency, noting that in 2024, wait times for service averaged 45 minutes, while disability benefit determinations were taking around 230 days.
As federal agencies operate under a continuing resolution until March 14, future funding and necessary adjustments remain dependent on Congressional action. The Social Security Administration has indicated it may take over a year to fully implement the new Social Security Fairness Act, aimed at enhancing benefits for millions who also receive public pensions.
According to the agency, although some beneficiaries are currently receiving assistance, existing budget constraints could delay the processing of increased benefits and retroactive payments.
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