Layoffs at Social Security

Summary

Marketplace Morning Report: Layoffs at Social Security Release Date: March 13, 2025
Host: Sabri Ben

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Introduction

In this episode of the Marketplace Morning Report, host Sabri Ben delves into the significant staff reductions at the Social Security Administration (SSA) and explores the broader implications of federal workforce downsizing, including its impact on tribal colleges. The discussion features insights from Marketplace's Nancy Marshall Genzer and touches upon related federal regulatory actions.

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Social Security Administration Layoffs

Overview of Layoffs The Social Security Administration announced a plan to reduce its workforce by 7,000 employees, decreasing the total staff from approximately 57,000 to 50,000 workers. This reduction is part of a broader deadline for federal agencies to submit reorganization plans to the Office of Management and Budget (OMB).

Implementation Strategies Nancy Marshall Genzer explains that SSA is primarily utilizing voluntary measures to achieve these cuts:

• Early Retirement Offers: Employees are encouraged to retire early.
• Voluntary Separation Incentives: Financial incentives are provided for voluntary departures.

"Social Security is offering early retirement and also a voluntary separation incentive. The agency says much of the staff reduction will be voluntary, but there will be layoffs."
— Nancy Marshall Genzer [01:26]

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Impact on Social Security Benefits and Services

Service Delivery Commitment Despite the layoffs, SSA assures the public that it remains committed to maintaining effective service delivery.

"Social Security says it's committed to ensuring that its plan has a positive effect on the delivery of services."
— Nancy Marshall Genzer [01:46]

Potential Risks and Concerns Jack Small from the Urban Institute expresses concerns about the loss of experienced IT staff, which he believes could jeopardize critical operations:

"He's worried that longtime IT staffers will leave. He says that could cause problems this fall when cost of living adjustments are made to Social Security payments and Medicare premiums change."
— Nancy Marshall Genzer [01:46]

Sabri Ben highlights the risk of payment errors during this transition period:

"If there is an error made in that process, you could have wrong payments going out."
— Sabri Ben [02:19]

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Effects on SSA Field Offices

Operational Challenges The reduction in frontline workers is expected to negatively impact SSA field offices nationwide, which are essential for in-person services.

"There will be an impact, an absolute negative impact upon wait times, upon processing times, upon the ability to schedule appointments for in-person services in terms of wait times to get a disability hearing in front of a judge."
— Rich Couture, SSA Attorney and Union Official [02:49]

Lease Terminations An additional complication arises from the termination of nearly 50 SSA leases listed on Elon Musk's Doge website, though it remains unclear if any field offices will be closed.

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Broader Federal Workforce Downsizing

Impact on Tribal Colleges Mass downsizing affects federally run tribal colleges such as Haskell Indian Nations University and Southwestern Indian Polytechnic Institute, leading to significant staff reductions.

Legal Actions and Community Response Students and tribal nations are suing the federal government for inadequate staffing cuts, arguing that the federal government's trust responsibility to tribes is being compromised.

"Tribes have the right to talk about the structure of those cuts and indicate which programs are of the most priority to them."
— Jacqueline De Leon, Native American Rights Fund [07:45]

Financial Strain on Tribal Institutions Nueta Hidatsa Sahnish College and other tribal colleges, although not directly subject to federal layoffs, depend heavily on federal funding, which is currently unstable due to frozen grants.

"Many tribal colleges are the only institutions of higher education in their rural regions, and Baker says they're bracing for lean times."
— Ella Bowen [08:40]

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Regulatory Developments: FTC’s Antitrust Probe on Microsoft

Continuation of Antitrust Investigation Despite leadership changes at the Federal Trade Commission (FTC), the antitrust probe into Microsoft persists. The investigation covers various aspects, including Microsoft's cloud computing business and its partnership with OpenAI.

"In a probe that began during the Biden administration, the FTC is looking at everything from Microsoft's huge cloud computing business to its deal with ChatGPT maker OpenAI."
— Nova Sappho, Marketplace [03:35]

Focus on Big Tech Scrutiny The new FTC chair, Andrew Ferguson, maintains a focus on regulating large technology companies, aligning with his administration's priorities.

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International Trade Tensions

Tariff Escalation President Donald Trump announced plans to impose 200% tariffs on French wine and other European alcoholic beverages in response to existing European tariffs on American whiskey, which themselves were retaliatory measures against Trump's tariffs on European steel and aluminum.

"President Donald Trump has threatened today to impose 200% tariffs on French wine and other European alcohol in retaliation for European tariffs on whiskey..."
— Sabri Ben [04:13]

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Conclusion

The episode underscores the ripple effects of federal workforce reductions, particularly within the Social Security Administration and tribal educational institutions. The potential disruptions in service delivery and community support systems highlight the broader implications of such organizational changes. Additionally, ongoing regulatory actions and international trade tensions continue to shape the economic landscape discussed in the report.

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This summary is based on the transcript of the "Layoffs at Social Security" episode from the Marketplace Morning Report. For more detailed insights and updates, listening to the full episode is recommended.

Transcript

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[Sabri Ben]

Security From Marketplace, I'm Sabri Ben. Ashore in for David Brancac is the deadline for federal agencies to hand in reorganization plans to the Office of Management and Budget. That includes layoffs, and the Social Security Administration is not immune. Marketplace's Nancy Marshall Genzer joins us to talk about it. Hi Nancy.

[Nancy Marshall Genzer]

Good morning.

[Sabri Ben]

So Social Security says it's reducing its staff by 7,000 employees from about 57,000 workers to 50,000. So how will they do that?

[Nancy Marshall Genzer]

Social Security is offering early retirement and also a voluntary separation incentive. The agency says much of the staff reduction will be voluntary, but there will be layoffs.

[Sabri Ben]

So what does all this mean for people receiving Social Security benefits? Will there be delays or problems with their payments?

[Nancy Marshall Genzer]

Social Security says it's committed to ensuring that its plan has a positive effect on the delivery of services. I talked to Jack Small again about this. He worked at the Office of Management, Management and budget for almost 30 years, focusing on Social Security. He's now at the Urban Institute. He's worried that longtime IT staffers will leave. He says that could cause problems this fall when cost of living adjustments are made to Social Security payments and Medicare premiums change. Those are usually deducted from Social Security.

[Sabri Ben]

If there is an error made in that process, you could have wrong payments going out.

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It could take a long time to resolve that.

[Sabri Ben]

What about Social Security field offices around the country? This is where you go if you want to talk to a real human being face to face. How would those be affected?

[Nancy Marshall Genzer]

It's not clear at this point, but Rich Couture, an attorney at the agency and a union official told me if Social Security loses thousands of its frontline workers. There will be an impact, an absolute.

[Rich Couture]

Negative impact upon wait times, upon processing times, upon the ability to schedule appointments for in person services in terms of wait times to get a disability hearing in front of a judge.

[Nancy Marshall Genzer]

And Elon Musk's Doge website lists almost 50 Social Security leases it says it's terminating. It does not say whether it's closing any field offices. I did reach out to the Social Security Administration for clarification on all of this, but they weren't able to answer my questions by deadline.

[Sabri Ben]

All right, Marketplace's Nancy Marshall Genser, thank you so much.

[Nancy Marshall Genzer]

You're welcome.

[Sabri Ben]

Replacing the Biden crew with the Trump crew at the Federal Trade Commission has not stopped a wide ranging antitrust probe of Microsoft. Marketplace's Nova Sappho has more on that.

[Rich Couture]

Bloomberg says FTC staff are continuing to talk with sources about multiple aspects of Microsoft's business. In a probe that began during the Biden administration, the FTC is looking at everything from Microsoft's huge cloud computing business to its deal with ChatGPT maker OpenAI. Regulators are reportedly also scrutinizing Microsoft's decision to pare back its own artificial intelligence projects. All of this would fit into the priorities of the new Trump appointed chair of the ftc, Andrew Ferguson, who has indicated an interest in maintaining scrutiny over big tech. I'm Nova Safo for Marketplace.

[Sabri Ben]

President Donald Trump has threatened today to impose 200% tariffs on French wine and other European alcohol in retaliation for European tariffs on whiskey which were in retaliation for Trump's tariffs on European steel and aluminum. Trade War Is trade warring.

[Janelie Espinal]

Foreign.

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[Public Investing Disclosure]

All investing involves the risk of loss, including loss of principal. Brokerage services for U.S. listed registered securities options and bonds in a self directed account are offered by Public Investing Inc. Member FINRA and SIPC. Cryptocurrency trading services are offered by Bakkt Crypto Solutions LLC. Complete disclosures available at public.com disclosures February's.

[Sabri Ben]

Mass downsizing of the federal workforce included federally run tribal colleges. Haskell Indian Nations University in Kansas and Southwestern Indian Polytechnic Institute in New Mexico. Each initially lost about 20% of their staff. Some have been hired back, but a lawsuit filed by three tribal nations and Indigenous students says that is not enough. Marketplace's Savannah Peters has more.

[Ella Bowen]

Ella Bowen is a freshman at Haskell Indian Nations University. She's studying to be a teacher. Her academic advisor helped her map out all the classes she needs to graduate.

[Jacqueline De Leon]

My whole four year program was laid out in her computer.

[Ella Bowen]

But last month, Bowen's advisor was abruptly let go, along with dozens of other faculty and staff. Bowen says professors are taking on extra courses. Students are filling in for fired custodians and cafeteria workers.

[Jacqueline De Leon]

I think everybody's really stressed out and sad at the community here, but we're all trying to work together.

[Ella Bowen]

Bowen is part of the group suing the federal government over these firings. Their attorney, Jacqueline De Leon with the Native American Rights Fund, says Haskell and the Southwestern Indian Polytechnic Instit help fulfill the federal government's trust responsibility to tribes.

[Jacqueline De Leon]

You know, as part of a bargain with the United States to give up vast swaths of lands Native Americans were guaranteed in many treaties education, De Leon.

[Ella Bowen]

Says tribes had a right to be consulted on downsizing at the two colleges, which, according to the federal government's own watchdog agency, are chronically understaffed.

[Jacqueline De Leon]

Even if some staffing cuts had to happen, tribes have the right to talk about the structure of those cuts indicate which programs are of the most priority to them.

[Ella Bowen]

The Department of the Interior declined Marketplace's request for an interview about the lawsuit. Twyla Baker is president of Nueta Hidatsa Sahnish College in North Dakota, one of 33 tribal colleges that isn't run by the federal government, she says. Those institutions are safe from federal layoffs, but they still rely on government support to fund some job training and academic programs.

[Sabri Ben]

Our sponsored programs is about anywhere from.

[Ella Bowen]

60 to 75% federal dollars, including some grants currently frozen by Trump's DEI order.

[Sabri Ben]

Everything's kind of just ground to a halt with with everything that's going on.

[Ella Bowen]

Many tribal colleges are the only institutions of higher education in their rural regions, and Baker says they're bracing for lean times. I'm Savannah Peters for Marketplace, and in.

[Sabri Ben]

New York, I'm Sabri Benishore with the Marketplace Morning Report from apm, American Public Media.

[Janelie Espinal]

Consumer confidence had its sharpest monthly decline since 2021, which means we're all in our feels about money. And while uncertainty is the only constant these days, it's also a great reason to get serious about understanding personal finance. I'm Janelie Espinal, host of Financially Inclined, a podcast from Marketplace that makes learning about money simple. Learn about practical skills like negotiating job offers, dealing with money in friendship and love, entrepreneurship and student loans. Get serious about your money and build a life you've always dreamed of. Listen to Financially Inclined wherever you get your podcasts.