Many people rely on Social Security, Medicare, and Medicaid for their monthly support after retirement. During his campaign, former President Donald Trump promised to protect these important programs.
While he has not made direct cuts to Social Security benefits, some of his recent actions may still affect how much retirees get in the future. Especially with decisions that affect how inflation is measured and reported — which directly impacts how much your Social Security benefits increase over time.
What Is a Federal Hiring Freeze and Why It Matters for Retirees
After taking office in January, President Trump put a freeze on hiring new federal employees. This freeze, which has been extended until October 15, affects several government agencies — including the Bureau of Labor Statistics (BLS).
The BLS collects the inflation data used to calculate the Cost-of-Living Adjustment (COLA) for Social Security.
The COLA is important because it helps Social Security payments keep up with rising prices. The 2026 COLA will be based on inflation data gathered from July to September 2025.
But with fewer workers at the BLS, the quality of this data could be compromised. This means the inflation number used might be inaccurate — and if it is, retirees might receive a COLA that’s either too low or too high.
Too low, and seniors lose spending power. Too high, and while it may sound like a benefit, it could throw off future budgets or raise inflation concerns.
Concerns Over the Firing of BLS Commissioner McEntarfer
On August 1, Trump fired Dr. Erika McEntarfer, the head of the Bureau of Labor Statistics. This came right after the BLS released poor job numbers for July and made large downward corrections for May and June’s employment data.
Normally, job data is revised every month as more information becomes available. However, the scale of the recent corrections was unusually large — the biggest since 2020. Still, experts agree this was not a reason to remove the commissioner, especially without evidence of wrongdoing.
Trump claimed, without proof, that the revised numbers were politically motivated. Many economists disagreed with his decision. Even William Beach, a Trump-appointed former commissioner, said the firing was unfair and harmful to the independence of the BLS.
How This May Affect the Future of Social Security
The inflation data used to decide how much Social Security payments increase each year is collected by the BLS. If people start to doubt the accuracy of BLS data — whether job numbers or inflation figures — trust in the system could fall. That means people might question whether they are getting the right benefit amounts.
Retirees already feel like recent COLA increases have not kept up with the actual rise in living costs. According to The Senior Citizens League, Social Security has lost about 20% of its buying power since 2010 due to low COLAs.
So, while Trump hasn’t cut Social Security directly, his actions — like freezing federal hiring and removing trusted officials — could weaken the system that calculates benefits.
Are You Missing Out on an Extra ₹19.8 Lakh (USD $23,760) in Social Security?
Many people don’t realise they can boost their Social Security income with smart claiming strategies. You could increase your retirement income by knowing the best time to claim benefits and how to maximise your earnings. Some tools and financial advice platforms offer personalised help in finding those “hidden” benefits.
If you’re planning for retirement, it’s wise to explore these options early.
President Trump’s recent actions may not directly reduce Social Security payments, but they could impact how those payments are calculated. With inflation data possibly becoming less accurate due to staff shortages and leadership changes, the yearly COLA might not reflect the real cost of living.
This could lead to smaller-than-needed increases in retirement benefits. For retirees relying on every rupee (or dollar), this is an issue worth watching closely.
