The U.S. Federal Government expects to spend $1,470,000,000,000.00 on Social Security Administration in 2025. This represents 21% of all Federal spending in 2025.
The Social Security Administration (SSA) is an independent agency of the U.S. federal government responsible for administering Social Security, a comprehensive social insurance program. Established in 1935, the SSA provides financial protection to millions of Americans through various benefit programs, including: Retirement Benefits: Monthly payments to eligible retired workers and their families. Disability Benefits: Assistance to individuals unable to work due to physical or mental impairments. Survivor Benefits: Support for family members of deceased workers. Supplemental Security Income (SSI): Needs-based payments to individuals with limited income and resources, including the elderly, blind, and disabled. The SSA also plays a crucial role in enrolling individuals in Medicare and issuing Social Security numbers, which are vital for various administrative purposes.
The SSA is primarily funded through mandatory spending, with its largest programs—retirement, disability, and survivors benefits—financed by payroll taxes collected under the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act (SECA). Additional revenue comes from the taxation of Social Security benefits for higher-income recipients. Administrative costs for SSA operations are funded through annual discretionary appropriations, which cover staff salaries, office operations, and program management.
For Fiscal Year (FY) 2025, the SSA's budget is structured to support its extensive range of programs and services. The budget comprises two primary components: Benefit Payments: Total Amount: Approximately $1.35 trillion. Breakdown: Retirement Benefits: $1.15 trillion (85% of total benefits). Disability Benefits: $150.9 billion (11% of total benefits). Other Benefits: $50.9 billion (4% of total benefits). USAFACTS Administrative Budget: Total Amount: $15.4 billion in discretionary budget authority. Purpose: Funds salaries and benefits for federal SSA employees and state employees at Disability Determination Services (DDS) offices, as well as other expenses such as rent for field offices, the National 800 Number, and information technology costs.
There have been numerous reported examples of wasteful spending at Social Security Administration . See below for some of the most recent reported cases.
