Social Security Delays Worsen as Public Sector Claims Take Priority

The Social Security Administration (SSA) is facing growing delays in customer service, as staffing cuts, record-high new claims, and a backlog of manual cases create mounting pressure across the agency.

According to policy experts, SSA’s services are expected to remain slow for the foreseeable future. Roughly 900,000 pending cases require manual review, staffing shortages are straining operations, and new applications have surged. Even basic tasks like bank account updates are taking longer than before, potentially affecting timely delivery of retirement, disability, and survivor benefits.

Backlog from fairness law and surging applications overwhelm SSA

The 900,000 cases stem from the Social Security Fairness Act, signed into law in early 2025 by former President Joe Biden, according to USA Today. The law was designed to correct long-standing disparities in benefit calculations for public employees—including retired teachers and postal workers—who were previously disadvantaged under the system.

While automated systems have already processed $15.1 billion for 2.32 million recipients, the remaining cases are too complex for automation and must be manually handled by SSA employees.

SSA Commissioner Frank Bisignano has set a July 1 deadline to complete the backlog. To accelerate processing, SSA has asked employees at eight national processing centers to work weekends and has limited phone support to new claims or Fairness Act-related inquiries. Other issues—such as bank information updates, payment error appeals, and Medicare billing concerns—will not be handled for now.

Meanwhile, the agency has seen a surge in new claims. From January to May, SSA received 1.8 million new applications, up 17% from the same period last year. The Urban Institute (UI) projects that the number will reach 4 million by the end of the federal fiscal year, a 15% increase over the previous year.

Shrinking workforce adds to pressure

The number of Social Security beneficiaries continues to grow. In 2015, about 59 million people received benefits. Today, more than 70 million Americans—retirees, people with disabilities, and surviving family members—depend on Social Security, marking a 19% increase in a decade.

At the same time, SSA is operating with fewer workers. Under the Trump administration, staffing has been reduced from 57,000 to 50,000 as part of a government-wide efficiency push. The combination of growing demand and fewer employees has intensified delays and increased frustration for claimants.

Analysts at UI also pointed out that growing public anxiety about future changes to Social Security has driven a spike in phone inquiries and in-person visits to SSA offices in recent months.

BY BRIAN CHOI [choi.inseong@koreadaily.com]