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DOGE actions may cause Social Security benefit ‘interruption’: ex-agency head

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1 year ago

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Then Social Security Commissioner Martin O’Malley testifies before the Senate Committee on the Budget on Sept. 11, 2024.

Anna Rose Layden | Getty Images News | Getty Images

Social Security has never missed a benefit payment since the program first began sending individuals monthly benefits more than eight decades ago.

But the recent actions at the U.S. Social Security Administration by Elon Musk‘s so-called Department of Government Efficiency are putting monthly benefit checks for more than 72.5 million Americans at risk, former commissioner and former Maryland governor Martin O’Malley told CNBC.com.

“Ultimately, you’re going to see the system collapse and an interruption of benefits,” O’Malley said. “I believe you will see that within the next 30 to 90 days.”

Ahead of any interruption in benefits, “people should start saving now,” O’Malley said.

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The Social Security Administration uses multiple systems and technologies that Elon Musk has criticized for leading to errors. As commissioner, O’Malley told Congress the agency needed more funding for IT modernization.  

O’Malley said DOGE leaders are now making changes at the agency, and significant staff cuts have already led to system outages. Those intermittent IT outages may happen more frequently and for more extended periods of time until there is a “system collapse and an interruption of benefits,” he said.

Neither the Social Security Administration nor the White House responded to requests for comment by press time.

Social Security Administration leadership upheaval

The Department of Government Efficiency, also known as DOGE, is not a federal department. And Musk, whom President Donald Trump brought on board to implement DOGE, is not an elected official.

Since its establishment, DOGE has looked to slash spending at federal government agencies.

Top Social Security official exits after refusing DOGE access to sensitive data

The cuts have led to leadership upheaval, with the recent resignation of acting commissioner Michelle King following a reported disagreement over DOGE’s access to sensitive data. O’Malley resigned from the Social Security Administration in November to run for chairman of the Democratic National Committee, a race which he lost to Minnesota Democrat Ken Martin.

Trump has nominated Frank Bisignano, CEO of financial-technology company Fiserv, to serve as the new commissioner of the Social Security Administration. Bisignano has yet to sit for Senate confirmation hearings.

In the interim, Lee Dudek, who first joined the agency in 2009, has been appointed acting commissioner.

Earlier this month, Dudek posted on LinkedIn that he had been placed on administrative leave from the agency for helping DOGE representatives, The Wall Street Journal reported on Feb. 20.

“Our continuing priority is paying beneficiaries the right amount at the right time, and providing other critical services people rely on from us,” Dudek said in a Feb. 19 statement about his appointment.

Whose benefits may be most at risk

Yet experts say the benefits Americans rely on could be at risk based on the Trump administration’s overhaul of the agency.

“The American public needs to understand that one of their major social safety nets is in dire jeopardy,” said Jill Hornick, a union official at the American Federation of Government Employees Local 1395, which primarily represents Social Security offices in Illinois.

“It’ll take a while for the effects to be felt, but they’re coming,” Hornick said, predicting what will happen to Social Security is going to be “far worse” than the planned cuts to Medicaid.

For people who are already receiving Social Security benefits, most of that is automated and may not be affected, she said. However, processing new claims — whether it be for retirement or disability benefits — may take longer since those cannot be processed without Social Security employees, she said.

On Thursday, the Social Security Administration sent a notice to employees that gives them until March 14 to decide whether to take an early buyout. Unlike a previous January offer, this now includes service employees, and staffing reductions in that area may impact how quickly the agency processes benefit claims and provides other services, Hornick said.

For example, if a woman files for a survivor benefit after her husband passes away, she needs to provide a copy of her marriage license. A Social Security employee then needs to code the system to verify they have seen that document and the applicant is eligible for benefits, Hornick said.

“Not everybody can do things electronically,” particularly the older adults and disabled individuals who the Social Security Administration serves, said Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare.

“If you don’t have people to run an agency that requires hands-on customer service, then of course there’s a risk that you could end up with benefits being either denied or interrupted,” Freese said.

Office closures may reduce access to services

The DOGE savings web page has a list of about 45 Social Security locations where leases will be terminated, according to Rich Couture, spokesperson for AFGE SSA General Committee, a union that represents 42,000 Social Security employees nationally.

The list provides little information on the uses for the locations that are being closed. Based on the square footage listed, they may be sites used to conduct in-person hearings for disability benefits, Couture said. In one case, the location seems to be a busy New York state field office that provides general services, he said.

“If they’re going to close these offices that are busy in highly populated areas, it would suggest to me that there’s no office in this country that would be safe from having a lease terminated, especially in rural areas,” Couture said.

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In a recent statement, Rep. John Larson, D-Conn., said the moves are a “backdoor benefit cut.”

“Let me be clear — laying off half of the workforce at the Social Security Administration and shuttering field offices will mean the delay, disruption and denial of benefits,” Larson said.

In a statement to CNBC.com earlier this week, the Social Security Administration said it has not set any reduction targets, in response to reports it plans to cut 50% of its employees.

As a union, AFGE has been issuing bargaining demands in response to the agency’s recent decisions and plans to enforce employee rights through other methods as necessary, spokesperson Couture said.

While many lawsuits have been filed, it will take time to work through them, especially as the courts are now being flooded with cases tied to the Trump administration’s actions, said Nancy Altman, president of advocacy organization Social Security Works.

The biggest results may come from the pressure American voters could put on elected officials, former SSA commissioner O’Malley said.

“I think many people throughout the country are going to start bringing a lot of heat to members of Congress who have been facilitating, supporting, aiding and abetting the breaking of their Social Security and the interruption of benefits that they work their whole lives to earn,” he said. “These are earned benefits.”

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$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

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6 days ago

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August 8, 2026

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The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

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Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

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1 week ago

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August 7, 2026

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Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

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Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

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2 weeks ago

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August 1, 2026

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As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

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