The Social Security Administration (SSA) is considering a policy that could strip benefits from thousands of recipients. According to Government Executive, a proposal is circulating that would prohibit payments to individuals without Social Security numbers (SSNs), potentially impacting thousands of beneficiaries receiving retirement, disability, and low-income benefits.
The issue centers on a little-known practice: SSA allows individuals without an SSN to serve as representative payees, managing benefit checks for eligible recipients. These payees are often family members, such as a parent caring for a disabled child, who oversee Social Security funds on behalf of beneficiaries unable to do so themselves.
A leaked internal memo obtained by Government Executive reveals that the draft policy would “bar any payments to payees without SSNs, of which there are currently more than 170,000.” In practical terms, SSA could halt payments whenever the designated payee lacks an SSN. The agency has not publicly announced this plan, and when contacted, SSA leadership declined to comment on the proposal.
Crackdown on Fraud: Musk and Trump’s Push for Government Efficiency
Observers claim DOGE is influencing SSA operations. At one point, SSA officials considered eliminating telephone support for claims processing and direct-deposit transactions under DOGE’s pressure. The Washington Post reported that this could have severely limited public access to benefits. After media scrutiny, SSA quickly reversed course, reinstating phone services due to public backlash.
Musk has been vocal about his mission to cut entitlement program costs. “Most of federal spending goes to entitlements. That’s the big one to eliminate,” Musk stated, according to PolitiFact, estimating the cost at $600 to $700 billion annually. While the White House later clarified that Musk was referring to wasteful spending rather than benefits themselves, his remarks have fueled concerns about cuts to Social Security.
Musk has frequently raised alarms about fraud in the system, alleging that fake Social Security numbers are being used to claim government benefits, including Social Security. “We’re going to be very careful with any benefits,” he stated at a recent event. “Tackling waste and fraud is the only way to preserve these programs for the future.”
Even acting SSA Commissioner Leland Dudek has expressed concerns. In a leaked recording obtained by ProPublica, Dudek warned that the system could collapse under DOGE’s sweeping changes. “It would be catastrophic for people across the country,” he cautioned.
Who Would Be Affected?
The SSA memo highlights that children receiving Supplemental Security Income (SSI) or disability benefits, whose parents lack an SSN, would be among those affected. Other groups at risk include widows and survivors of deceased Americans living overseas, who may have foreign family members as payees.
SSA employees told Government Executive that the proposal might be tied to the administration’s immigration policies. One SSA worker noted, “The only time we pay someone who is here illegally is when they are a payee. By barring people without SSNs from being payees, the administration could claim to have stopped payments to illegal immigrants. But this would create a crisis—these payees are often the only ones able to manage funds for disabled children and vulnerable beneficiaries.”
If SSA proceeds with the policy, implementing it would be a significant challenge. The agency would need to either issue SSNs to more than 170,000 payees or find alternative payees for affected beneficiaries. The leaked memo acknowledges the uncertainty, stating, “The agency needs to confirm that it has the authority to make this change.” If approved, SSA would need to contact thousands of payees to either submit an SSN or replace them with an eligible alternative.
The complexity of this undertaking cannot be overstated. Kathleen Romig, director of disability policy at the Center on Budget and Policy Priorities, warned that finding new payees is often difficult. “Sometimes SSA turns to institutional payees like child welfare agencies because individual payees are hard to find,” she explained. SSA also must vet each payee to ensure they are suitable, further adding to the workload.
In short, tens of thousands of vulnerable Americans could see their essential benefits disrupted, creating an administrative burden for an already stretched agency.
The Future of Social Security Reform
For now, the proposal remains just that—a proposal. SSA officials are still evaluating whether they have the authority to implement the change, and no official action has been taken. Is this truly about stopping fraud, or is it an attempt to cut costs, regardless of the consequences? The fate of 170,000 beneficiaries hangs in the balance as the debate unfolds.
