President Trump’s Effect on Social Security Disability Benefits

February 7, 2017

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President Trump’s Effect on Social Security Disability Benefits

by Kyle Sciolaro

Since the election of Donald Trump, three of my clients have asked me how his administration’s policies will affect Social Security disability benefits. Setting aside political preferences, I understand concern — for any reason — about the viability of the Social Security disability programs. These benefits are the sole means of survival for many millions of people.

 

I suspect that some of this concern stems from reports in December 2016 about proposed Republican-sponsored House legislation that would change Social Security retirement benefits [1]. However, when campaigning, candidate Trump advocated maintaining the current Social Security retirement program. [2].

 

President Trump has not publicly commented on Social Security disability benefits. In 2011, though, he authored the book “Time to Get Tough: Making America #1 Again.” He briefly commented on Social Security disability:

 

“Then there’s the disability racket. Did you know that one out of every twenty people in America now claims disability? That adds up to $170 billion a year in disability checks. Between 2005 and 2009, it is estimated that $25 billion were eaten up in fraudulent Social Security Disability Insurance filings.” [3]

 

It’s not clear whether Trump still believes this. In fact, some might say it’s not clear whether Trump believed it when he wrote it. What is clear that Trump’s popularity would suffer if the public were to perceive him as responsible for reductions and terminations in benefits. After all, there are approximately 18 million people on SSDI and SSI. This accounts for roughly 7% of the working age population. [4]. This is a considerable number of voters.

 

Trump’s recent hiring freeze is probably the most immediate and obvious action that could affect disability benefits. As a federal agency, the Social Security Administration is subject to the hiring freeze. Consequently, the lengthy wait for a hearing before an administrative law judge after an initial denial will continue. [5]. However, agencies have been afforded 90 days to develop a plan, after which the hiring freeze will expire. [6]. It’s too soon to tell how this will unfold.

 

The President can shape Social Security Administration policy through his selection of the agency’s commissioner. Trump has not yet appointed a new Social Security Administration commissioner. For now, Nancy Berryhill serves as the agency’s temporary commissioner. Berryhill is a lifelong Social Security Administration employee. Employed there for over 40 years, she has experienced several presidential shuffles. Her recent public statement did not suggest that she would enact any changes. [7].

 

There has also been attention paid to Trump’s proposed director of the Department of Health and Human Services, Tom Price. Price has most certainly been a proponent of Social Security disability reform. [8]. He has opposed borrowing from the Social Security retirement fund to cover deficits in the Social Security disability budget. [9]. However, the Social Security Administration is an independent agency. The Department of Health and Human Services no longer exercises control over the Social Security Administration or federal disability benefits.

 

In conclusion, it is too early to conclude exactly what effect Trump will have on Social Security disability benefits. But his temporary hiring freeze guarantees that the backlog of cases awaiting hearing will move no faster than before. Other changes will depend upon his selection of a new commissioner and any developing political pressure.

 

To express your opinion to Trump, visit https://www.whitehouse.gov/contact and https://www.donaldjtrump.com/contact. When he selects a new Social Security Administration commissioner, you may share your view with your Senator who will be responsible for voting on confirmation of Trump’s appointee. https://www.senate.gov/senators/contact/.

 

Citations

[1] https://www.nytimes.com/2016/12/17/opinion/sunday/will-donald-trump-cave-on-social-security.html?_r=0

 

[2] https://www.c-span.org/video/?c4568033/donald-trump-social-security

 

[3] https://books.google.com/books?id=q5XmAgAAQBAJ&pg=PA77

 

[4] https://www.ssa.gov/policy/docs/statcomps/ssi_sc/2015/table01.html; https://www.ssa.gov/policy/docs/statcomps/di_asr/; https://fred.stlouisfed.org/series/LFWA64TTUSM647S

 

[5] https://www.bloomberg.com/news/articles/2017-01-27/trump-freeze-seen-worsening-526-day-disability-case-backlog

 

[6] http://www.govexec.com/management/2017/01/here-are-details-trumps-governmentwide-hiring-freeze/134803

 

[7] http://socsecnews.blogspot.com/2017/01/a-message-from-new-acting-commissioner.html

 

[8] https://www.facebook.com/reptomprice/posts/10152648690140421

 

[9] http://thehill.com/policy/finance/230593-congress-torn-over-depleted-disability-fund

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