Thirteen months into President Donald Trump’s second term, Social Security has undergone several notable changes affecting retirees, public workers, and beneficiaries nationwide. While immigration and trade have dominated headlines, federal retirement policy has quietly seen structural adjustments with tangible consequences.
From tax modifications under new legislation to the implementation of reforms signed at the close of the previous administration, the Social Security system has experienced both legislative and administrative shifts. These actions have influenced benefit payments, agency operations, and how millions of Americans receive their monthly checks.
Tax Changes and Repeal of WEP and GPO Alter Benefit Landscape
During the 2024 presidential campaign, Trump pledged to eliminate federal taxes on Social Security retirement benefits. Following passage of the One Big Beautiful Bill Act (OBBBA), the White House stated in a press release that “no tax on Social Security is a reality,” citing an analysis by the Council of Economic Advisers estimating that 88% of seniors receiving benefits would not pay taxes on them.
The change came through an enhanced standard deduction under OBBBA, providing $6,000 for individuals and $12,000 for couples aged 65 and older. According to the Center on Budget and Policy Priorities, nearly half of beneficiaries in that age group who previously paid federal taxes on their benefits will still owe at least some taxes. Before OBBBA was enacted, around 64% of seniors already did not pay federal taxes on Social Security benefits. The enhanced deduction is temporary and is set to expire in 2028 under the law.
Another significant shift followed the Social Security Fairness Act, signed by former President Joe Biden on January 5, 2025. The law repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO), which had reduced or eliminated benefits for more than 2.8 million people, including teachers, firefighters, police officers, and certain federal employees covered by the Civil Service Retirement System. Although Trump did not initiate the legislation, his administration oversaw its implementation.
Because the law applied to benefits beginning in January 2024, many retirees received retroactive payments. Others saw increases to their monthly benefits alongside their annual cost-of-living adjustment, reshaping retirement income for affected public-sector workers.
Operational changes reshape benefit delivery and agency workforce
Administrative decisions have also altered how benefits are delivered. On March 25, 2025, President Trump signed an executive order to phase out paper checks for all federal payments, including Social Security retirement and disability benefits. The administration stated that eliminating paper checks would reduce costs, fraud risks, and inefficiencies.
The Social Security Administration (SSA) stopped issuing paper checks on September 30, 2025. According to SSA data, nearly 400,000 people were affected, representing less than 1% of the 70.6 million beneficiaries.
At the same time, the agency reduced its workforce by approximately 7,000 positions, about 12% of total staff. SSA stated in February 2025 that the reductions addressed what it described as a “bloated workforce and organizational structure,” adding that cuts would focus on functions not directly tied to mission-critical services. Jessica LaPointe of the American Federation of Government Employees characterized the move as the largest staffing reduction in the program’s 90-year history.
Some rural field offices have closed due to staffing constraints. Still, SSA’s 2026 operating plan sets a goal of scheduling 100% of requested appointments within 30 days, compared with the current rate of 78.3%. Whether the agency can meet that target with a smaller workforce remains to be seen, but the structural changes are already shaping the daily experience of beneficiaries across the country.
