The Social Security Administration (SSA) has warned that funding shortfalls could lead to service delays for millions of recipients, as critical staffing levels face significant reductions.

The potential loss of over 2,000 workers would come amid record-high numbers of Social Security beneficiaries relying on the agency for essential services.

Staffing Crisis Looms Amid Funding Dispute

A continuing resolution passed in September has already imposed a hiring freeze at the SSA, placing the agency on track for its lowest staffing levels in 50 years.

This comes at a time when demand for Social Security services is at an all-time high.

According to the SSA, recipients may face prolonged delays for claims processing, benefit adjustments, replacement cards, and call centre support if Congress fails to approve increased funding.

The SSA spokesperson has stated that without additional appropriations, customers will encounter even longer wait times, escalating backlogs, and delays in claims processing.

As of October 2024, it already takes up to ten months to get a hearing for disability claims—a timeline that could grow further if the funding shortfall persists.

Progress at Risk of Reversal

Despite the challenges, the SSA has reported gains in productivity this year, including faster processing of disability cases and reduced wait times for phone services.

However, the hiring freeze and looming funding cuts threaten to reverse these improvements.

Without new funding, SSA offices may face closures, and remaining staff could be furloughed for up to 10 days, significantly degrading public services.

The agency has projected that the funding shortfall could create a £316.78 million ($401 million) deficit in its fiscal year 2024 operating budget.

This figure is £1.26 billion ($1.6 billion) below what President Joe Biden proposed for the SSA.

Democratic Senator Chris Van Hollen has cautioned that such cuts would severely impact the agency’s ability to serve the public, stating, “It would be terrible if they have to furlough staff. We should not be cutting the Social Security budget.”

Partisan Deadlock Over SSA Budget

House Republicans have pushed back against the SSA’s funding concerns, arguing that the agency received a £78.97 million ($100 million) funding increase for fiscal year 2024.

They claim the Biden administration’s request is unsustainable and could necessitate cuts in other critical areas, such as public health, medical research, and child care.

The funding dispute coincides with discussions surrounding the creation of a proposed “Department of Government Efficiency,” led by Elon Musk and Vivek Ramaswamy.

The department aims to reduce federal spending by £1.57 trillion ($2 trillion), raising additional concerns over future resources for federal agencies, including the SSA.

As Congress debates the SSA’s funding levels, millions of Americans are bracing for potential service delays and disruptions to the lifeline services they depend on.

The final outcome of the funding negotiations will determine whether the SSA can maintain its operations or endure significant setbacks in the coming months.