Social Security benefits form a major source of income for millions of vulnerable Americans each month. As such, the processes and system through which this welfare is distributed will naturally face some changes and tweaks as time passes so as to account for external economic and political factors.
As with any major change in leadership, when the Trump Administration had been elected to office at the beginning of the year, many changes to federal operations were put in motion and the Social Security Administration was, of course, included in this.
Changes with the Social Security Administration in 2025
This first change with Social Security for the year was the cost of living adjustment, or COLA and was likely welcomed by beneficiaries as it meant a highly monthly benefit. The COLA was announced last October and was determined to be a 2.5% increase. This increased benefit amount came into effect as of January 2025.
The Social Security earnings test limit has also been increased and as a result, seniors who are still working whilst also receiving benefits are now able to earn more money before reaching the point where some of their benefits are at risk of being withheld.
Continuing with the theme of increases, the Social Security wage gap has also been increased. Taxes on an additional $7,500 of income are now required to be paid by higher earners. Naturally, this is not great news for the taxpayers, however, the Social Security Administration is in dire need of more funding.
With regards to policy changes, the Social Security Fairness Act was signed into law as one of President Joe Biden’s final acts in office. This Act eliminated the provisions of the Windfall Elimination Provision and the Government Pension Offset. As a result, around 3 million public sector workers will now be able to receive increased benefits and a retroactive payment dating back to January 2024.
Trump wants to axe taxes on benefits
The unfortunate truth for many retirees or seniors on Social Security is that, often, a portion of their monthly benefits checks is lost as it needs to be contributed toward federal taxes. President Trump does not agree with this policy and has even pledged to eliminate taxes on Social Security in his campaigns.
To this day, it is still a change the president wants to enact, however, it is easier said than done. The SSA is reliant on taxes paid by seniors on their benefits for revenue, not to mention that the agency is already beginning to run low on funding. As such, if taxes on benefits are cut, beneficiaries might end up seeing a cut to their benefit amounts from as soon as a decade from now.
More DOGE-driven changes in the pipeline
The Department of Government Efficiency, or DOGE, was introduced into the SSA and headed by tech billionaire Elon Musk with the goal of cutting federal costs. Since the agency appears to be on the precipice of financial troubles, the inclusion of this department does appear to be a good idea on the surface.
Subsequently, in pursuit of bettering the agency’s bottom line, DOGE has enacted some major changes to the SSA, including a reduction of its workforce by around 7,000 employees — sparking much controversy.
Another DOGE enacted change that could be looming on the horizon is the closure of several more SSA offices with the aim of conserving critical federal resources. SSA offices will not be closed indiscriminatory, but rather a focus will be placed on locations that do not seem to attract much foot traffic.
Additionally, in an attempt to streamline Social Security processes, DOGE might also look into making some changes to the way issues from beneficiaries are addressed, as well as working towards expanding online services.