Personal Finance

Trump pick to lead Social Security faces questions on DOGE involvement

Published

2 months ago

March 25, 2025

Frank Bisignano testifies before the Senate Finance Committee on his nomination to be Commissioner of the Social Security Administration, on Capitol Hill in Washington, DC, March 25, 2025.

Saul Loeb | AFP | Getty Images

President Donald Trump’s nominee to lead the Social Security Administration, Frank Bisignano, faced senators’ questions on Tuesday as to how involved he has been with recent changes at the agency under the Department of Government Efficiency.

The unofficial government entity known as DOGE has been tasked by the White House to root out waste, fraud and abuse in the federal government, including at the Social Security Administration, which provides benefit payments to millions of Americans each month.

Following changes put in place by DOGE, including staff cuts and plans to close field offices, the Social Security Administration’s phone lines often go unanswered, the website is crashing and “seniors are getting lost in the system,” said Sen. Ron Wyden, D-Oregon, ranking member of the Senate Finance Committee.

The hearing, Wyden said, provides Bisignano, who is CEO of financial payments technology company Fiserv, to “tell the American people whose side he is on” — either the side of American workers or DOGE “bureaucracy.”

Whistleblower says nominee will be ‘bad for the agency’

At the hearing, Wyden introduced a statement from an unidentified “very high level official” at the Social Security Administration who said Bisignano insisted on approving several key DOGE hires at the agency and getting frequent briefings.

“This whistleblower has said that this is a nominee who will be bad for the agency, and has cited specifics,” said Wyden, who represented the unnamed person as “somebody who’s told the truth” in their career.

In response, Bisignano said he has never talked with Lee Dudek, who is currently the acting commissioner of the Social Security Administration. Bisignano said he knows Michael Russo, who is currently chief information officer at the Social Security Administration, through previous roles.

“I don’t know him as a DOGE person; I know him as a CIO,” Bisignano said.

Fiserv CEO on the nomination to Social Security Commisioner role

When pressed by Wyden to confirm he would “lock DOGE out” of Social Security databases, Bisignano said he did not know what the term “lock DOGE out” specifically means.

“I’m going to do whatever is required to protect the information that is private information,” Bisignano said.

On March 20, federal judge Ellen Lipton Hollander issued a temporary restraining order that barred DOGE from accessing personally identifiable information at the Social Security Administration. She also told DOGE affiliates to delete any such info currently in their possession.

That includes Social Security numbers, medical provider information, medical and mental health treatment records, employer and employee payment records, employee earnings, addresses, bank records and tax information.

In a February CNBC interview, Bisignano said he “100%” plans to work with DOGE to identify potential waste, fraud and abuse at the agency.

“I am fundamentally a DOGE person,” Bisignano said during his CNBC appearance.

When asked to clarify that comment at the Tuesday Senate hearing, Bisignano said he has prioritized efficiency before there was such a word as DOGE.

Bisignano also said he would not knowingly allow personally identifiable information to be viewed by unauthorized personnel.

Whistleblower worries agency actions will ‘harm seniors’

In the written statement, the undisclosed whistleblower, who identifies as a “senior Social Security Administration employee who recently left the agency,” said they are concerned that recent actions at the agency will negatively impact millions of Americans.

Bisignano frequently spoke with senior SSA executives and was personally briefed on “key SSA operations, personnel and management decisions,” the whistleblower alleges.

As an unconfirmed nominee, Bisignano requested that senior agency executives not hire anyone without his approval, the whistleblower alleges.

Bisignano personally appointed Russo and has spoken to him frequently about the agency’s operations, the whistleblower alleges in their statement. He also was directly involved in the onboarding of attorney Mark Steffenson, Scott Coulter and DOGE engineer Akash Bobba, the whistleblower writes.

Bisignano was also aware of concerns regarding broad data access for DOGE employees that had been requested and that it did not follow privacy laws, disclosure policies and internal agency controls, the whistleblower states.

The whistleblower included a list of 19 individuals, including Dudek, Russo and former acting commissioner Michelle King, who they said can verify their statements.

“Frank Bisignano is not in the [Social Security] agency and is not involved in any decision making at the agency,” Arjun Mody, a Trump transition official, said via email.

The Social Security Administration did not immediately respond to CNBC’s request for comment.

This is a developing story. Please check back for updates.

Personal Finance

How child tax credit could change as Senate debates Trump’s mega-bill

Published

39 minutes ago

June 2, 2025

Business Finance News

Vera Livchak | Moment | Getty Images

As the Senate debates President Donald Trump‘s multi-trillion-dollar tax and spending package, there could be changes to the child tax credit, policy experts say.

If enacted as drafted, the House-approved bill would make permanent the maximum $2,000 credit passed via Trump’s 2017 tax cuts — which could otherwise revert to $1,000 after 2025 without action from Congress.

The highest credit would also rise to $2,500 from 2025 to 2028. After that, the credit’s top value would revert to $2,000 and be indexed for inflation.

But the Senate could have different plans, and negotiations will be “really interesting to watch,” said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.

The proposed higher child tax credit comes as the U.S. fertility rate hovers near historic lows, which has been a concern for lawmakers, including the Trump administration.

Some research suggests financial incentives, like a bigger child tax credit, could boost U.S. fertility. But other experts say it won’t solve the issue long-term.

As the Senate prepares to debate Trump’s mega-bill, here’s how the child tax credit could change.

Republican child tax credit support

While Democrats have long pushed for a child tax credit expansion, there has also been a more recent bipartisan push for changes.

Vice President JD Vance, who formerly served as Senator of Ohio, floated a higher child tax credit during the campaign in August.

“I’d love to see a child tax credit that’s $5,000 per child. But you, of course, have to work with Congress to see how possible and viable that is,” he told CBS’ “Face the Nation.”

Sen. Josh Hawley, R-Mo., in January also called on the Senate floor for a $5,000 child tax credit. His proposal would apply the credit to payroll taxes and provide advance payments throughout the year.

“There’s some recognition here that they need do a little more,” Gleckman said.

Credit ‘refundability’ could change

Often, tax credits don’t benefit the lowest earners unless they are “refundable,” meaning filers can still claim without taxes owed. Nonrefundable credits can lock out those consumers because they often don’t have tax liability.

House lawmakers in January 2024 passed a bipartisan child tax credit expansion, which would have improved access and retroactively boosted the refundable portion.

While the bill failed in the Senate in August, Republicans said they would revisit the measure.

However, the child tax credit in the latest House-approved bill is less generous than the provision passed in 2024, policy experts say.

As written, the House plan provides no additional benefit to 17 million children from low-income families who can’t claim the full $2,000 credit, Margot Crandall-Hollick, principal research associate at the Urban-Brookings Tax Policy Center, wrote in May.

Why the U.S. government can't convince Americans to have more kids

Personal Finance

Social Security checks may be smaller for some as garnishments begin

Published

24 hours ago

June 1, 2025

Business Finance News

T-studios2 | E+ | Getty Images

Some Social Security beneficiaries may find their June check is smaller: Starting this month, a share of people’s benefits can be garnished if they’ve defaulted on their student loans.

The Trump administration announced on April 21 that the U.S. Department of Education would resume collection activity on the country’s $1.6 trillion student loan portfolio. For nearly half a decade, the government did not go after those who’d fallen behind as part of Covid-era policies.

More than 450,000 federal student loan borrowers age 62 and older are in default on their federal student loans and likely to be receiving Social Security benefits, the Consumer Financial Protection Bureau found.

Depending on details like their birth date and when they began receiving benefits, their monthly Social Security check may arrive June 3, 11, 18 or 25, according to the Social Security Administration.

Many Social Security recipients rely on those checks for most, if not all, of their income. So people who are facing a smaller federal benefit as a result of garnishment are likely in a panic, said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York.

But, Nierman said, “the good news is there are multiple options for borrowers to stop those payment offsets.”

Here’s what you need to know if you’re at risk of a smaller benefit.

How to challenge the garnishment

Federal student borrowers should have received at least a 30-day warning before their Social Security benefit is offset, said higher education expert Mark Kantrowitz.

That notice should include information on whom to contact in order to challenge the collection activity, Kantrowitz said. (The alert was likely sent to your last known address, so borrowers should make sure their loan servicer has their correct contact information.)

You may be able to prevent or stop the offset if you can prove a financial hardship or have a pending student loan discharge, Kantrowitz added.

With that in mind, your next step may be pursuing a discharge with your student loan servicer. That’s more likely in circumstances where you have significant health challenges.

“If they are sick or disabled, they can file for a Total & Permanent Disability discharge,” Nierman added.

Borrowers may qualify for a TPD discharge if they suffer from a mental or physical disability that is severe and permanent and prevents them from working. Proof of the disability can come from a doctor, the Social Security Administration or the Department of Veterans Affairs.

Get current on your loans

Another route to stop the offset of Social Security benefits is getting current on the loans, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.

You can contact the government’s Default Resolution Group and pursue several different avenues to get out of default, including enrolling in an income-driven repayment plan.

“If Social Security is their only income, their payment under those plans would likely be zero,” Mayotte said.

Student loan default collection restarting

Offset is limited to 15%

Social Security recipients can typically see up to 15% of their monthly benefit reduced to pay back their defaulted student debt, but beneficiaries need to be left with at least $750 a month, experts said.

The offset cap is the same “regardless of the type of benefit,” including retirement and disability payments, said Kantrowitz.

The 15% offset is calculated from your total benefit amount before any deductions, such as your Medicare premium, Kantrowitz said.

When Social Security benefit isn’t enough

Many retirees worry about meeting their bills on a fixed income — with or without facing garnishment, experts said.

Utilizing other relief options may help stretch your funds while you work on stopping the offset to your Social Security benefits.

For example, there are a number of charitable organizations that assist seniors with their health-care costs. At Copays.org you can apply for funds to put toward copays, premiums, deductibles and over-the-counter medications.

The National Patient Advocate Foundation has a financial resource directory in which you can search for local aid for everything from dental care to end-of-life services.

Many older people aren’t taking advantage of all the food assistance available to them, experts say. A 2015 study, for instance, found that less than half of eligible seniors participated in the Supplemental Nutrition Assistance Program, or SNAP.

The extra money can go a long way for retirees on a fixed income, though. The maximum benefit a month for a household of one is $292. Grocery stores, online retailers and farmers markets accept the funds.

Personal Finance

How Trump ‘big beautiful’ tax bill could change in the Senate

Published

1 day ago

June 1, 2025

Business Finance News

Staff members remove a sign following a press conference after the House passage of the tax and spending bill, at the U.S. Capitol on May 22, 2025 in Washington, DC.

Kevin Dietsch | Getty Images

House Republicans passed a multi-trillion-dollar tax and spending package after months of debate, which included many of President Donald Trump‘s priorities.

Now, policy experts are bracing for Senate changes as GOP lawmakers aim to finalize the “big bill” by the Fourth of July.

If enacted as currently drafted, the House’s “One Big Beautiful Bill Act” would make permanent Trump’s 2017 tax cuts, while adding new tax breaks for tip income, overtime pay and older Americans, among other provisions.

The House bill also approved historic spending cuts to programs for low-income families, including Medicaid health coverage and SNAP, formerly known as food stamps.

“Overall, the [Senate] bill is not going to be that much different,” said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.

But there will be “a lot of debate” about the Medicaid provision, as well as other changes, he said.

Here are some other issues to watch during negotiations, policy experts say.

Fiscal hawks could ‘stop the process’

With control of Congress, Republicans are using a process called “budget reconciliation,” which bypasses the Senate filibuster and only needs a simple majority vote to clear the upper chamber.

But some GOP senators have cost concerns about the House-approved bill.

“We have enough to stop the process until the president gets serious about spending reduction and reducing the deficit,” Sen. Ron Johnson, R-Wis., said last week on CNN’s ‘State of the Union.’

An earlier version of the House package could raise the deficit by an estimated $3.8 trillion over the next decade, according to the Congressional Budget Office. However, the agency hasn’t released an updated score to reflect the bill’s last-minute changes.

Other cost estimates for the House-passed reconciliation bill have ranged between $2 to $3 trillion over 10 years.

Under reconciliation, the Senate bill also must follow the “Byrd Rule,” which bans anything unrelated to federal revenue or spending.

After the Senate vote, House lawmakers must approve changes to the bill, which could be tricky with a slim Republican majority.

“That’s where the fight is really going to happen,” Gleckman said.

A lower ‘SALT’ deduction limit

One sticking point during the House debate was the current $10,000 limit on the federal deduction for state and local taxes, known as “SALT,” which is scheduled to sunset after 2025.

Enacted by Trump via the Tax Cuts and Jobs Act, or TCJA, of 2017, the $10,000 cap has been a key issue for certain lawmakers in high-tax states like New York, New Jersey and California.

Before TCJA, filers who itemized tax breaks could claim an unlimited deduction on state and local income taxes, along with property taxes. But the so-called alternative minimum tax reduced the benefit for some higher earners.

After lengthy debate, House Republicans approved a $40,000 SALT limit. If enacted, the higher cap would apply to 2025 and phase out for incomes over $500,000.

Putting tax & spending bill together before July 4th will be 'extremely difficult', says Bill Daley

But the SALT limit is likely to be lower than $40,000 after Senate negotiations, experts say.

Staying closer to the current $10,000 cap “seems like a very natural place to start,” but the final number could be higher, said Alex Muresianu, senior policy analyst at the Tax Foundation.

Child tax credit could be more generous

The Senate could also expand the child tax credit further, policy experts say.

If enacted in its current form, the House bill would make permanent the maximum $2,000 credit passed via the TCJA, which will otherwise revert to $1,000 after 2025.

The House measure would also make the highest child tax credit $2,500 from 2025 through 2028. After that, the credit’s top value would revert to $2,000 and be indexed for inflation.

But some senators, including Josh Hawley, R-Mo., have called for a bigger tax break. Vice President JD Vance also floated a higher child tax credit during the campaign in August.

With the House-approved tax breaks favoring higher earners, “there’s some recognition that they need to do a little more” for families, Gleckman said.

“That’s going to be a fun one to watch,” he said of the upcoming Senate debate.