David Camp, NOSSCR Senior Policy Advisor & General Counsel

If you thought the path to a stable SSA budget was finally clear, the last several days in Washington have provided a sharp reminder of how quickly the political winds can shift. What looked like a “glide path” last week has turned into a high-stakes standoff that could leave the agency in the lurch by Friday at midnight.

The Standoff: DHS, Minnesota, and the “S-Word”

The legislative landscape changed dramatically following the fatal shooting of Alex Pretti in Minneapolis this past weekend—the second such incident involving federal agents in that city this month. Because SSA’s funding is part of a “minibus” package that includes the Department of Homeland Security (DHS), the agency has become a bystander in a bitter battle over federal law enforcement conduct.

The rhetoric escalated sharply yesterday. Senate Minority Leader Chuck Schumer made the Democratic position clear, stating:

“What’s happening in Minnesota is appalling—and unacceptable in any American city… Senate Democrats will not provide the votes to proceed to the appropriations bill if the DHS funding bill is included.”

On the other side of the aisle, Senate Majority Leader John Thune has pushed back, accusing Democrats of playing political games with essential funding and reiterating that he opposed an extension beyond the January 30 deadline.

The SSA Budget: A “Restoration” Snapshot

It is frustrating that issues regarding a completely distinct agency are stalling an SSA budget that, for once, actually addresses some of SSA’s critical needs. The House-passed agreement includes:

• Total Funding: $14.84B, largely matching the administration’s request of $14.79B.
• The FTE “Add-On”: Congress actually went $50M above the request to increase Full-Time Equivalents (FTE), explicitly acknowledging that the agency needs more boots on the ground to provide high-quality service.
• IT Modernization: A requested $400M increase (+18%) in IT funding is included. However, for those of us in the hearing rooms, it’s a “restoration” rather than an expansion. For example, IT funding for “Disability, Hearings, & Appeals” would rise to $124.8M—a significant jump from last year ($75.2M), but still below the $129M allocated in FY 2024.
• A Shorter Leash: Reflecting concerns about recent DOGE (Department of Government Efficiency) interventions, the report demands a granular, contract-by-contract breakdown of SSA’s IT portfolio. Congress is giving SSA the money, but they are keeping a closer eye on the checkbook.

Shutdown Outlook as of Wednesday

As I write this on Wednesday morning, Senators have returned to work for closed-door meetings within their parties.

The current outlook is grim:

• The Vote: The Senate is scheduled to vote on the six-bill package on Thursday, but it is expected to fail as long as DHS is included.
• The Off-Ramp: Congressional Republicans are currently waiting for a signal from the White House. Unless the Administration indicates that it will accept changes to the package—such as stripping out the DHS portion—a shutdown is more likely.
• The Duration: If the government shuts down Friday night, the consensus in D.C. is that it will last at least until the middle of the following week.

What This Means for NOSSCR Members

SSA has not yet released an updated contingency plan for this specific week, though we do not expect changes from the version used recently. Benefit checks will still clear, fee payments and hearings will continue, and pending claims will be processed. Regardless of the wording in a contingency plan, expect customer service deficits—especially at field offices and on the phones.

We hope the Senate will pass the Labor-HHS section (including SSA) separately, but with the House out of town this could cause delays into February.

NOSSCR will work to keep you updated.

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