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Politics
16 April 2025

Biden Criticizes Trump Administration's Social Security Cuts

Concerns grow over staff reductions and access to benefits for vulnerable citizens

Former U.S. President Joe Biden raised alarms on April 15, 2025, regarding significant staff cuts at the Social Security Administration (SSA) under the current Trump administration. Speaking to supporters of disability rights in Chicago, Biden emphasized that recent reductions by the Department of Government Efficiency (DOGE) are causing "serious damage and devastation" to the social security system, which he described as a "sacred promise" to American citizens.

The SSA currently disburses approximately $1.4 trillion annually to about 73 million elderly and disabled individuals. In his remarks, Biden highlighted that President Trump had previously vowed not to alter funding for this crucial program. However, the proposed cuts, which include a reduction of at least 7,000 personnel and the closure of numerous offices, have sparked widespread concern about the potential for delayed access to benefits for those in need.

Since February 2025, some staff from DOGE have been appointed to key positions within the SSA, raising further questions about the agency's operational integrity. A federal judge recently determined that the SSA might have breached privacy laws by granting DOGE employees unrestricted access to sensitive data systems. Consequently, a court has temporarily halted the sharing of records while the investigation continues.

Biden also addressed recent disruptions within the SSA's information technology systems, stating that many people have been unable to access their online accounts. He attributed these issues to the current administration's mismanagement.

In response, White House Press Secretary Karoline Leavitt reiterated President Trump's commitment to safeguarding social security benefits for law-abiding taxpayers. She announced that Trump would sign a memorandum aimed at preventing illegal immigrants and ineligible individuals from accessing SSA assistance. This memorandum is set to expand the fraud investigation program to at least 50 federal prosecutor's offices, alongside the implementation of fraud prosecution initiatives related to Medicare and Medicaid at 15 additional offices.

On the same day, President Trump signed an executive order aimed at reducing high drug prices, which have become a pressing concern for many Americans. Additionally, he signed a memorandum to prevent illegal immigrants and ineligible individuals from receiving assistance under the Social Security Act, further tightening eligibility criteria.

Meanwhile, on the international front, the European Commission announced a 90-day suspension of retaliatory measures against U.S. tariffs, effective from April 14 to July 14, 2025. This pause in tariff enforcement provides a temporary reprieve for various economies affected by U.S. trade policies.

In a separate but related context, the recent imposition of reciprocal tariffs by the U.S. on imports from Vietnam has raised critical questions regarding the protection of workers at risk of job loss. The Trump administration's announcement of a steep 46% tax on Vietnamese goods in early April has already led to significant disruptions in trade relations.

Mr. Do Phuoc Tong, representing the Ho Chi Minh City Mechanical Engineering Association, characterized the situation as a "shock, absurdity" as U.S. partners abruptly canceled contracts with several Vietnamese companies. Many plastic packaging businesses reported receiving notices from U.S. clients demanding an immediate halt to all production and shipment activities, threatening job security in export-oriented industries.

Exports to the U.S. account for roughly 23% of Vietnam's GDP, making the potential for widespread unemployment a pressing concern if tariffs remain in place. The World Bank has identified three main challenges facing Vietnam's social security system: labor market volatility, a high rate of informal labor, and low productivity levels.

Despite some improvements in the social security framework, a study from 2018 indicated that approximately 76% of the Vietnamese labor force—equivalent to 55-60% of non-agricultural workers—operate in the informal sector without labor contracts and receive limited or no social insurance. This high level of informality presents a critical vulnerability amid the emerging trade crisis.

In light of these challenges, the Vietnamese government has faced scrutiny regarding its ability to bolster social security protections for workers. Recent policy developments, including a one-time withdrawal option for foreign workers' social insurance contributions upon contract termination, have been seen as incremental rather than comprehensive reforms.

Moreover, the government withdrew a controversial proposal that would have required workers to cover debts in lieu of employers to qualify for pensions. Instead, a new proposal grants the government the authority to determine eligibility and conditions for pensions for employees affected by bankruptcies or employers who fail to contribute to social insurance before July 1, 2024.

Despite these moves, the World Bank has criticized Vietnam's approach to social security reform as primarily piecemeal rather than a comprehensive restructuring. UNICEF has also highlighted the need for improved support for vulnerable groups, advocating for a more streamlined and inclusive approach to identifying beneficiaries.

The recent 90-day suspension of the 46% tariff offers Vietnam a brief opportunity to address its social security challenges. Dr. Can Van Luc described this as a "temporary lifeline," allowing stakeholders time to devise alternative response strategies. However, experts warn that the window is short, necessitating swift action to strengthen social protections.

As the Vietnamese government appears to prioritize immediate trade negotiations over domestic social welfare improvements, concerns linger about the adequacy of protections for workers facing potential job losses due to external economic shocks like U.S. tariffs. The current fragmented social security system, characterized by limited coverage—especially for informal labor—poses significant risks to employment stability.

In conclusion, as Vietnam navigates these turbulent economic waters, reinforcing its social security network must be a priority alongside diplomatic efforts to resolve trade disputes. Without effective measures, workers in export-oriented sectors will continue to face heightened risks, threatening the country's impressive growth trajectory and social stability.