A circulating memo at the Social Security Administration (SSA) suggests a new policy that could halt payments for over 170,000 beneficiaries, including those receiving retirement, survivor, disability, and low-income benefits.
Who Would Be Affected?
The proposal targets representative payees—people who manage benefits for Social Security recipients but do not have a Social Security number (SSN). While these individuals do not receive benefits for themselves, they act on behalf of disabled children, elderly recipients, and survivors.
If approved, the policy could impact:
- U.S.-born children receiving Supplemental Security Income (SSI) or disability benefits if their parents lack an SSN.
- Widows and survivors of Americans, especially those residing overseas.
A Potential Immigration Policy Shift?
Some SSA employees suggest this move is part of the Trump administration’s broader immigration crackdown. While non-citizens are generally ineligible for Social Security benefits, undocumented individuals can serve as representative payees. The policy change would eliminate this, though critics argue it could create a humanitarian crisis.
“We usually are paying them because their kid is severely disabled and still a minor,” one SSA employee explained. “If they aren’t the right person to manage funds, who is?”
Concerns About Fraud and Service Delays
The SSA acknowledges that selecting alternative payees, such as distant relatives or organizations, increases the risk of fraud and misuse. An internal document warns:
“There may be a higher risk of fraud or misuse if we select a friend, other relative, or organization instead of a parent or spouse.”
Additionally, SSA staff—already overburdened and reduced—would be responsible for identifying and approving thousands of new payees, potentially delaying payments for affected beneficiaries.
As this proposal circulates, many are awaiting further clarification on its impact and whether it will be formally enacted.
