Memo from Trump on anti-fraud measures may enable the Social Security Administration to withhold benefits for some Americans who have earned them.
In a move that has sparked debate and controversy, President Trump has signed a memo titled "Preventing Illegal Aliens from Obtaining Social Security Act Benefits." The memo, which focuses on combating instances of identity theft and "beneficiary-side" fraud, tasks federal officials with issuing new guidance and regulations to prevent undocumented immigrants from receiving Social Security benefits.
The memo could potentially affect Social Security Act programs beyond just benefits, including unemployment insurance, Medicare, and Medicaid. According to an internal memo on the proposal, upwards of 170,000 beneficiaries could have their payments cut off, at least temporarily. However, it's important to note that there is no evidence that undocumented immigrants are unlawfully receiving Social Security benefits.
Undocumented immigrants contribute more than $25 billion to the Social Security trust fund via payroll taxes each year. This contribution is a testament to the fact that many undocumented workers are employed and contributing to the system, despite not being eligible for benefits.
The memo also tasks the leaders of the Labor, Health and Human Services departments, in addition to the Social Security Administration (SSA), to ensure ineligible aliens are not receiving funds from Social Security Act programs. The SSA, however, has not yet moved forward with the plan mentioned in the memo.
Democrats and Social Security experts argue that the Trump administration's actions are intended to reduce public confidence in retirement and disability programs, opening the door to privatization. Martin O'Malley, former Social Security commissioner, describes the plans as "financially murder" and making it harder for Americans to receive their benefits. O'Malley states that the plans have a common goal of inflicting cruelty on people in the name of going after immigrants.
One proposed plan, if implemented, could potentially interrupt benefits legally owed to Americans and American-born children. The proposal, first reported by Government Executive last month, suggests stopping issuing payments to representative payees without Social Security numbers. Representative payees are not currently required to be eligible for benefits themselves or have a Social Security number. Undocumented individuals can serve as representative payees for eligible beneficiaries within the SSA, including disabled children and elderly and disabled adults.
It's worth noting that the full-time "fraud specialists" ordered by President Trump are not explicitly named in the provided context. However, Bill Pulte, a MAGA enthusiast installed by Trump as director of the Federal Housing Finance Agency, is mentioned as someone who uncovered alleged fraud and accuses others like Letitia James and Adam Schiff of mortgage fraud. This suggests that Trump has positioned loyalists like Pulte in key roles to pursue claims of fraud.
The White House fact sheet cites statistics from the Federation for American Immigration Reform, a right-wing nonprofit. The memo's focus on "recipient side fraud" and "ineligible payees" suggests that the plan may still be in the works. As the situation develops, it's crucial to maintain factual accuracy and avoid unfounded assumptions. The SSA's fraud rate is less than 1%, a testament to the effectiveness of the current system in preventing fraud.
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