The Social Security Administration (SSA) said in a release that it has identified over $800 million in savings or “cost avoidance” for the fiscal year 2025 among information technology, grants, property and payroll.
The SSA stated that it froze hiring and “drastically” cut back on overtime, saving around $550 million.
The government agency that administers the Social Security program said it cut back $150 million from the information technology systems (ITS) budget by cancelling “non-essential contracts and identifying reductions in other ITS contracts.”
The Acting SSA Commissioner Lee Dudek said Monday evening the agency has “operated on autopilot” for far too long.
“We have spent billions annually doing the same things the same way, leading to bureaucratic stagnation, inefficiency, and a lack of meaningful service improvements,” Dudek said in a statement. “It is time to change just that.”
SSA said it made a 70 percent reduction in travel, saving to the tune of $10 million. The agency said it also terminated $15 million in contracts and another $15 million in grants.
