Here's how the Social Security Administration and Internal Revenue Service are being put at risk

That assessment is heartbreaking, but is also the result of intentional neglect. The strategy has been to frustrate people where they interact with government because they view government as an intrusion. The Social Security Administration and the Internal Revenue Service are two of the places where people interact with the federal government. Congress has starved both of these agencies. Social Security is amazing. It was designed in the 1930s and still fits the needs of Americans today. It is the backbone of our retirement system, which provides monthly benefits to 49 million retired workers and 3 million spouses and children, as well as 6 million survivors of retired workers. There is a need for adequate staff and updated technology to disperse $1.2 trillion annually to 66 million people. Congress has underinvested in Social Security for more than a decade, and the challenges facing the agency have been exacerbated by COVID-19, which has led to a weakened relationship between the agency and the agency.

The money to administer Social Security comes from workers' contributions to the program, not from general revenues, but Congress sets limits on the amount that SSA may spend on its operations each year. Between 2010 and 2022 Congress reduced SSA's operating budget by 17% in inflation-adjusted terms, see Figure 1. These cuts occurred just as baby boomers reached their peak years for retirement and disability benefits. As a result, SSA staff has decreased by 16% over a period when Social Security beneficiaries have increased by 22%. Figure 1 COVID 19 has made things even harder. SSA had to close its field offices in March 2020, which was only reopened last spring. The agency lost about 4,000 employees during the Pandemic, reducing staffing to its lowest level in decades. The impact of the COVID office closures and shrinking staff has clearly affected service delivery: the average processing time for initial disability claims has gone up by two-thirds from 132 to 220 days since the outbreak. In 2000, SSA launched its first online claim application for retirement benefits. Although the monthly online application rate initially grew significantly, it has slowed considerably in the last decade and hovers at around 50% since 2013 see Figure 3 Read: Here s a way to save Social Security that doesn't raise taxes or cut benefits.

A study by my colleague JP Aubry concluded that even many people who claim online contact SSA at some point in the process. The share of those who claimed to have been completely online is well below 50%. This percentage may increase in the future as younger cohorts come through with more familiarity with online tools, but a significant share will continue to contact SSA in person or by phone when claiming benefits.

In short, online options won't solve the problem of Social Security. The agency needs more money for staff and technology to operate effectively. The Congress just needs to let the agency spend the money because of the fact that Social Security has the money - our payroll tax contributions.