SSA launches cost-saving plan, cutting expenses and fraud

The Social Security Administration (SSA) has introduced a major initiative aimed at cutting costs and fighting identity fraud. The plan, announced on March 19, includes three phases focused on improving its Electronic Consent Based Social Security Number Verification (eCBSV) service. This initiative is part of a broader effort under President Donald Trump to reduce government spending. The SSA has faced increasing financial pressures, as over 71 million Americans rely on its services. Critics have pointed to high administrative costs and delays in processing claims as major issues. The first phase of the plan aims to reduce eCBSV costs by 40 percent and cut annual fees for participating businesses and agencies by 25 percent. The SSA will also work to improve the accuracy of results from the verification service. Future phases may integrate eCBSV with another verification system to streamline processes. The agency is committed to keeping stakeholders, including industry and government partners, involved in the development of this service. Regular meetings and feedback collection will help address any concerns. In addition to this new cost-saving plan, the SSA recently announced plans to decrease its workforce from 57,000 to 50,000 through voluntary retirements. It is also working to close some offices, expecting to save around $4 million yearly. Furthermore, the SSA is reducing its information technology budget and has identified $150 million in savings by dropping non-essential contracts. Travel expenses will see a 70 percent cut, and other administrative spending is expected to save another $30 million. The agency is also reinstating a policy to fully recover overpaid Social Security benefits. SSA's acting commissioner, Lee Dudek, emphasized the agency's commitment to enhancing its services while reducing costs. However, some lawmakers have expressed concern over the changes. Georgia Senator Raphael Warnock criticized the closure of local offices, while Congressman Tim Burchett suggested that cutting waste could benefit seniors. The SSA plans to start implementing its three-phase strategy immediately.