In a recent op-ed for The Hill, Max Richtman, president of the National Committee to Preserve Social Security and Medicare, noted the chronic underfunding of the Social Security Administration (SSA). This is not news for those of us who advocate on behalf of people with disabilities. But the public needs to know that the second most popular federal agency (behind the National Park Service) needs more money to provide worldclass service.
SSA is funded "mainly from the Social Security trust fund, which Americans contribute to during their working years in exchange for retirement and disability benefits. Even though SSA is not funded through general revenues like most other agencies, its budget is still subject to the congressional appropriations process. In other words, workers have effectively paid for SSA’s operating expenses, but Congress limits the amount of money available to the agency every fiscal year."
According to Richtman, between 2010 and 2021, SSA’s operating budget fell by 13 percent in inflation-adjusted terms. During the same period, the number of beneficiaries grew by more than 22 percent. Budget cuts led to workforce reductions which led to shorter hours at some offices and long hold times and repeated busy signals when people attempted to call SSA. (It is still often impossible to speak with a real human being when you call SSA.)
Despite all this, SSA is one of the most cost-effective federal agencies. It spends about 1 percent of total revenue on operations.
"After years of suffering through endless frustrations and sometimes fatal delays, senior and people with disabilities deserve a fully-funded and functional Social Security Administration."