Social Security Bill Blocks New Agency Oversight, Funds $2 Billion Service Overhaul, and Guarantees Field Office Staffing

This bill, aptly named the “Keep Billionaires Out of Social Security Act,” is essentially a massive structural overhaul and service guarantee for the Social Security Administration (SSA). It immediately carves out the entire SSA—its programs, employees, and IT systems—from the jurisdiction of the newly created Department of Government Efficiency (DOGE). Furthermore, it allocates a whopping $2 billion over the next decade to specifically fund customer service improvements, technology modernization, and clearing the massive backlog of disability claims, applying retroactively to January 1, 2025, to reverse any recent cuts.

The Data Firewall: Keeping Political Hands Off Your Records

One of the biggest changes is the creation of a serious data firewall (Sec. 3). The bill bans political appointees and special government employees from accessing any SSA “beneficiary data system”—that’s the stuff holding your Social Security number, health data, and tax records. The only exception is if they are hired by the SSA specifically to improve benefit delivery, which sets a high bar. More importantly, if someone carelessly leaks your data, you can now sue the U.S. government for damages, with penalties starting at the greater of $5,000 per violation or actual damages. If a government employee willfully leaks your data, it becomes a felony punishable by up to five years in prison. This is a game-changer for data privacy, shifting the accountability for negligent handling of highly sensitive personal information directly to the government and its employees.

Service Guarantee: No More Office Closures or Staff Cuts

If you rely on your local SSA field office, Section 6 is for you. The bill locks in the number of field offices and hearing offices at their January 1, 2025, levels, meaning the SSA cannot close offices or reduce public access unless they are just relocating. It also mandates that the total number of SSA employees cannot drop below the 2024 level, explicitly banning hiring freezes and reductions-in-force. For anyone who has spent an hour on hold trying to reach a human, the bill requires significant improvements in phone wait times and callback times within 12 months. This provision is a direct countermeasure to years of budget constraints that have decimated SSA staffing and local services, guaranteeing stability for people who need in-person help.

The Disability Lifeline: Funding Legal Help and Clearing Backlogs

For those navigating the brutal process of applying for disability benefits (SSDI or SSI), the bill introduces two new grant programs. Section 11 establishes grants for existing state protection and advocacy systems, guaranteeing at least $200,000 per state to provide legal advice, appeals assistance, and advocacy for applicants. Section 12 creates a separate $15 million annual grant program for community-based organizations to provide direct assistance and representation during applications and appeals. These organizations must include licensed attorneys and have oversight from current or former beneficiaries. This is huge: it recognizes that the system is too complex for many to navigate alone and funds the necessary support structure to level the playing field for vulnerable applicants.

Overpayment Rules Are Codified

Section 10 addresses the painful issue of overpayments, where the SSA accidentally pays you too much and then demands it all back. The bill codifies a standard repayment rate: the SSA can only take back the greater of 10% of your monthly benefit or $10. This applies to any overpayment decisions made after March 25, 2024, and to existing debts not yet fully recovered. While you can still be required to pay faster if fraud is involved, this provision protects the vast majority of beneficiaries from having their entire monthly check wiped out due to an SSA accounting error.

Budget Shift: Fixing the Funding Formula

Finally, Section 8 changes how the SSA gets its operating money. Starting in fiscal year 2026, the administrative budget for Social Security, SSI, and Medicare administration will be fixed at 1.2% of the total benefits paid out each year. The big catch here is that the bill excludes these administrative costs from being counted toward federal deficit or surplus calculations. While this guarantees stable funding for the SSA’s operations—a major win for an agency that has struggled under budget uncertainty—it also means that this spending will effectively fly under the radar of standard Congressional budget caps and enforcement rules, which could reduce fiscal scrutiny on the agency’s operational growth.