DOGE efforts face pushback at Social Security

Where it stands: Last week, multiple outlets reported that Social Security was ending a key DOGE policy, a three-day hold put on telephone claims to conduct fraud checks.

• The policy did not turn up any significant fraud and was slowing the processing of retirement claims, Nextgov first reported. Last month the agency walked back a different part of its new phone policies.
• Several changes DOGE pushed at the agency have been abandoned or reversed, the Washington Post reported, after they resulted in customer service issues, delays and outrage from seniors, advocates and lawmakers.
• The agency is pushing employees to work harder with diminished staffing levels, HuffPost reported last week.

Yes, but: The agency is now improving an anti-fraud algorithm for telephone claims, a Social Security official told Axios. Only the cases with "the highest probability of fraud" will be flagged, which should improve processing times, they said.

• The agency official noted that AI-improvements are making it so Social Security can serve "more customers than ever," citing its own data about customer service.

What they're saying: The constant churn is creating chaos inside the agency as offices try to adjust to the changes, only to have them quickly pulled back, one recently retired Social Security executive told Axios.

• Add to that the huge loss in experienced talent at the agency: "You've got this policy and procedural churn going on, and the people dealing with it are some of our least experienced employees," they said, speaking on the condition of anonymity for fear of retribution.
• The agency is nearing a "breaking point," they said.
• The current agency official pushed back on this as well: "Social Security is being led by highly-qualified individuals who are committed to protecting and strengthening the program."

Zoom out: Many employees have been pushed out of the agency by DOGE, including many senior executives with years of experience and those with tech expertise navigating the agency's many antiquated software systems and databases.

• Earlier this year, the agency said it wanted to eliminate 7,000 employees, which is 12% of staff. 3,000 have voluntarily left so far, per an agency press release, pushed out by DOGE. And another 2,000 have been reassigned to field offices from headquarters or regional hubs.
• It remains unclear if more staff cuts are coming. Now that commissioner Frank Bisignano is confirmed, he is "evaluating staffing levels," the agency official said.

• Complicating matters is a surge in retirement claims, according to an analysis from the Urban Institute reported in the New York Times.
• The increase was spurred on in part by worries that changes would make it harder for older Americans to signup for benefits. The agency official said it has to do with other factors, including an increasing number of Boomers retiring, and other normal cyclical issues.

The other side: "DOGE has played a critical role in improving the Social Security Administration, from modernizing its technology infrastructure to enhancing efforts to identify waste, fraud and abuse," says White House spokeswoman Liz Huston.

The big picture: Most Americans either receive Social Security benefits, pay into the system or know someone who receives payments. Retirees and older Americans in particular are very sensitive to changes at the agency.

• That's why it has long been called a third rail of American politics.

"It was surprising that DOGE even went after it to begin with," said Jacob Leibenluft, who worked at the Office of Management and Budget in the Biden administration, and has been tracking the moves of Musk's quasi-agency.

• He noted that there have been a few instances where public outcry has led DOGE to reverse itself, but overall that doesn't mean damage hasn't been inflected inside the federal agencies.
• "Even when they pull back on specific policy or personnel decisions, the broader sort of damage they're doing to the functioning of of a wide range of agencies, is still being felt," he said.