The Social Security program was signed into law in 1935 by President Franklin D. Roosevelt in order to fight elder poverty. The insurance program has since been providing retirees, as well as disabled individuals and survivors, with a stable income for close to a century now. Over the years, the program has had various changes enacted to it, the most notable of which is the gradual increase of the Full Retirement Age as per the 1983 amendments which are set to finally reach an end next year.
However, at the halfway point of this year, it could also be said that 2025 alone has brought with it a fair share of changes and updates to the Social Security Administration (SSA) and its benefit program. With the appointment of a new president to office in the beginning of the year, it comes as no surprise that changes were conducted to federal systems and programs — the SSA included — as the new administration settled into its role of leadership. Here are some of the more notable changes faced by the SSA under the Trump Administration.
Tax break for Social Security recipients
President Donald Trump’s mega bill and reconciliation package, the One Big Beautiful Bill Act, was recently passed in Congress with a 218-214 vote and will be officially signed into law by the president in a ceremony at the White House on Friday. Under the One Big Beautiful Bill Act, seniors aged 65 and older will stand to benefit from an additional tax deduction of $6,000 for individuals and $12,000 for joint filers — provided their income is below the $75,000 and $150,000 threshold respectively.
This deduction will be in effect for a temporary period beginning in the tax year 2026 and ending in 2028. According to recently appointed SSA Commissioner Frank Bisignano, “This is a historic step forward for America’s seniors. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect social security and helps ensure that seniors can better enjoy the retirement they’ve earned.”
Due to changes in taxable income thresholds under the new bill, a larger number of Social Security recipients will be exempt from paying taxes on their benefits. However, taxes on benefits have in no way been repealed despite many official channels framing it as such. Subsequently, this has sparked some criticism from former SSA officials. For instance, Kathleen Romig, former senior adviser at the SSA under the Biden Administration, said, “People are like: ‘Is this real? Is this a scam?’ Because it’s not what they signed up for. It doesn’t sound like normal government communications, official communications. It sounds like – you know – partisan,” as per CNN.
Other changes at the SSA
An executive order from the office of the President titled, “Modernizing Payments To and From America’s Bank Account” states that the use of paper-based payment systems will be phased out as of September 30th, 2025. Instead, all federal payments and disbursements will be made using electronic or digital payment systems.
A July 7th press release from the SSA has confirmed that all Social Security Fairness Act cases have successfully been processed five months ahead of schedule. The SSA previously estimated that this task would be completed by early November, whilst the previous Biden Administration said it would take a full year at the very least to be processed.
The SSA will also begin withholding 50% of benefits from those with overpayment balances starting from July 24th. Notices were sent to the impacted beneficiaries on April 25 who then had 90 days to request a lower withholding rate or submit a waiver of repayment. Following this, if no action was taken, 50% of the benefit will be withheld until their balance is cleared.
In April, Stephen Evangelista was officially appointed to the roll of Deputy Commissioner for the Office of Operations at the SSA. “Stephen’s proven track record of leadership and his dedication to public service make him an excellent choice for this critical role,” said former Acting Commissioner of Social Security Lee Dudek. “His deep knowledge of the agency’s programs will be an asset as we continue to improve customer service while safeguarding Americans’ hard-earned benefits.”