Business
Commentary: Trump, the GOP and DOGE have launched their attack on Social Security. You should start worrying now
Perhaps the most frequently cited quote from Donald Trump relevant to his purported efforts to root out government waste has been “we’re not touching Social Security,” or variations thereof.
I expressed skepticism about this pledge shortly after the election by listing all the oblique ways the Trump administration could hack away at the program.
It gives me no pleasure to update my observation with the words, “I told you so.”
“We’re not touching Social Security.”
— Donald Trump makes a false promise
Among the weapons Trump could wield, I wrote, was starving the program of administrative resources — think money and staff. Sure enough, on Friday the program, which is currently led by acting Commissioner Leland Dudek, announced plans to reduce the program’s employee base to 50,000 from 57,000.
Its press release about the reduction referred to the program’s “bloated workforce.”
To anyone who knows anything about the Social Security Administration, calling its workforce “bloated” sounds like a sick joke. The truth is that the agency is hopelessly understaffed, and has been for years.
In November, then-Commissioner Martin O’Malley told a House committee that the agency was serving a record number of beneficiaries with staffing that had reached a 50-year low.
I asked the Social Security Administration to reconcile its claim of a bloated workforce with the facts. I got no reply.
Nearly 69 million Americans were receiving benefits as of Dec. 31, according to the agency. That figure encompassed 54.3 million retired workers, their spouses and their children, nearly 6 million survivors of deceased workers and more than 8.3 million disabled workers and their dependents. Agency employment peaked in 2009 at about 67,000, when it served about 55 million people.
“Without adequate staff at the agency,” Sen. Patty Murray (D-Wash.) said at a news conference Monday, “there will be people who can’t get their benefits, period.”
Not only beneficiaries could be affected by Trump’s raid on Social Security. About 183 million people pay Social Security taxes on their earnings. Their right to collect what they’re entitled to based on their contributions is dependent on the system recording those payments and calculating their benefits accurately, to the last penny. Any incursion by DOGE into the program’s systems or the scattershot firings that Dudek forecasts puts all that at risk.
In his testimony, O’Malley talked about how the agency had struggled to establish an acceptable level of customer service. In 2023, he said, wait times on the program’s 800 number had ballooned to nearly an hour. Of the average 7 million clients who called the number each month for advice or assistance, 4 million “hung up in frustration after waiting far too long.” The agency had worked the wait down to an average of less than 13 minutes, in part by encouraging customers to wait off the line for a call back.
Disability applicants faced the worst frustrations, O’Malley said. The backlog of disability determinations, which often require multiple rounds of inquiries, hearings and appeals, had reached a near-record 1.2 million. The program estimated that about 30,000 applicants had died in 2023 while awaiting decisions.
O’Malley had asked for a budget increase in fiscal 2025 to add at least 3,000 workers to the customer-service ranks, but it wasn’t approved.
Make no mistake: The starving of Social Security’s administrative resources, which is currently taking place under the guise of ferreting out fraud and waste, is no accident. It’s part of a decades-long Republican project aimed at undermining public confidence in the program.
Back in 1983, for example, the libertarian Cato Institute published an article by Stuart Butler and Peter Germanis calling for a “Leninist” strategy to “prepare the political ground” for privatizing Social Security on behalf of “the banks, insurance companies, and other institutions that will gain from providing such plans to the public.” Political opposition, as it happens, resulted in the death of George W. Bush’s push to privatize Social Security in 2005.
Germanis has since become a fierce critic of conservative economics and politics. Butler, who had spent 35 years at the right-wing Heritage Foundation before joining the Brookings Institution in 2014, told me by email he now advocates a private retirement system as an “add-on” private option rather than an alternative to Social Security. He also said he thinks “cutting staff and the claim that Social Security is rife with fraud and abuse are both ridiculous.”
The Trump acolytes have already taken an ax to some Social Security operations, as announced by Dudek — a former mid-level agency worker who stepped into the vacuum created by the departure of several managers who had dustups with Elon Musk’s DOGE outfit and by a delay in Senate confirmation of Commissioner-designate Frank Bisagnano, a banking and Wall Street veteran.
Last week, Dudek closed the agency’s office of transformation, which he called “wasteful” and “redundant.” The office was engaged in helping to keep the agency’s website operational and to develop usable online resources for beneficiaries and applicants. He closed its office of civil rights and equal opportunity, certainly functions relevant to the program’s operations. Employees in both offices were laid off or fired, and their pages on the website were removed.
On Monday, Dudek bragged about having “identified” some $800 million in cost savings, including through the cancellation of contracts that, for all he knows, may be crucial to the agency’s functioning. The largest “savings” came from a freeze on hiring and overtime in disability determination services, worth $550 million, according to Dudek.
But that’s an area where hands-on contact between applicants and the agency is indispensable. Academic researchers reported in 2019 that the closing of field offices dealing with disability applications led to “a persistent 16% decline in the number of disability recipients in surrounding areas, with the largest effects for applicants with moderately severe conditions and low education levels.”
In an appearance Friday on Joe Rogan’s webcast, Musk called Social Security “the biggest Ponzi scheme of all time,” a repetition of an ancient meme that demonstrates only that he knows nothing about Social Security, and nothing about Ponzi schemes. The program boasts an 85-year unbroken record for paying beneficiaries what they’re owed, and currently holds a reserve of nearly $2.8 trillion in Treasury securities, all publicly disclosed.
The GOP brain trust has accepted the claim that Social Security is rife with fraud without devoting a moment’s thought to it. House Speaker Mike Johnson absurdly claimed Sunday on “Meet the Press” that Musk’s “algorithms crawling through the data” are “finding enormous amounts of waste, fraud and abuse.”
There’s absolutely zero evidence for that. Can we trust Musk to find it? This is the guy whose claim that “millions” of people aged 150 or older were receiving payments was decisively debunked — the notion that benefits were going to people that old was merely an artifact of the software program used by the agency. No payments are going to anyone in that category; Social Security automatically ceases payments to anyone who has reached the age of 115. The chief bug in the system is Musk’s ignorance.
By the way, the search for waste, fraud and abuse — call it WFA — has a long and discreditable history. Ronald Reagan pledged to ferret out enough WFA to cut the federal budget by more than 6% (sometimes he said 10%). One of his first steps, however, was to fire 15 departmental inspectors general, whose jobs involved finding WFA. Sound familiar? One of Trump’s first orders upon taking office was to fire inspectors-general at 17 federal agencies.
Reagan impaneled the so-called Grace Commission, whose chairman, industrialist J. Peter Grace, promised to unearth billions of dollars of the elusive WFA. The commission’s eventual proposals included taxing Social Security benefits, adding soy meat-extender to school lunches ($84-million savings over three years), and eliminating the regulatory agencies that oversaw industries represented by the panel’s members.
The truth is that Social Security is one of the most efficient agencies in the federal government. Its administrative costs are one-half of one-percent of its total costs, which include benefit payments.
What’s the goal of this raid on Social Security, the nation’s premier anti-poverty program and one whose beneficiaries live by the tens of thousands in every congressional district in the land?
It’s as if Trump and Musk are intent on staging a natural experiment on whether Republicans can tick off or terrify 69 million Americans at one fell swoop by taking away their sustenance in old age or disability — and still win election.
They’re bound to learn, to the contrary, that there isn’t a federal program that Americans value more than Social Security. Are they dumb enough to try killing it? We shall see.
Business
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
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