Frank Vignano, whom President Trump chose to lead the Social Security Agency, faced tough questions from Senate Democrats on Tuesday, asking whether lawmakers would ignore calls from others in the administration to make changes that could destabilise key programs for retirees.
At the almost three-hour confirmation hearing, Bisignano, who has recently been at the helm of the huge Fiserv of payments, has been asked to burn his commitment to improving Social Security customer service and to either not privatize the program or to privatize or reduce programs that require Congressional acts.
“I had never thought about privatization,” Vignano told Sen. Sheldon White House of Rhode Island, one of the many Democrats who raised concerns. “No one ever spoke to me, and I don't see this institution as anything other than a government institution that runs for the benefit of the American people.”
He assures lawmakers that he will be in charge of the agency, he said “I'll see all the items you want me to see.”
“For me, the job is to analyze everything we do. I know there are a lot of statistics out there. I'm not in the department, but I see the data it generates and I think there's a land where there's an opportunity,” he added in another exchange.
Republicans on the Senate Finance Committee accepted Visignano and called for payment processing companies that are operating his experience. Vignano portrayed himself as an expert on “efficiency” and emphasized that his experience of eliminating fraud through technical solutions would help him run his agency.
Bisignano's confirmation hearing takes place at the time of the uproar for an institution that plays a key role in providing retirement, survivors and disability payments to 73 million Americans each month.
Recent policy changes to the program under Trump have sparked widespread concerns between beneficiaries and employees that access to benefits could be more difficult. Agents usually evolve slowly and recognize that missteps can block cash for many retirees and disabled people who rely on benefits for the majority of their income.
But since Elon Musk's government efficiency team arrived at the Social Security Agency, changes have happened much faster that month or so. The Trump administration has announced plans to cut 12% of the agency's workforce, and has pledged more than 2,600 employees to retire so far.
Additionally, agents in recent weeks have quickly and sometimes clumsyly announced other policy changes that have come with criticism. One recent change will be that staff is at their lowest in 50 years, and more beneficiaries will lead their business to the agency's website or field office over the phone when many workers are leaving.
Senator Bernard Sanders of the Vermont Independent repeatedly asked Visignano whether it would be wise to fire a large number of workers when the agency is understaffed until he gets a direct answer.
“I think the answer is probably no,” Vignano replied.
Describing himself as “basically a doge guy,” in an interview with CNBC, Visignano seemed to distance himself from what's going on with the Social Security Agency.
But that characterization was challenged at a hearing by Oregon Democrat Sen. Ron Wyden, who issued a statement saying he was from a whistleblower. Citing the letter, Wyden said Mr. Visignano personally intervened to acquire key staff involved with the agency, including those approved in the middle of the night.
Visignano said he never spoke to Deputy Commissioner Leland Dudeck, but he spoke with current Chief Information Officer Mike Russo.
Bisignano has spent much of his career at large financial institutions, including positions at Morgan Stanley, Citigroup and Jpmorgan Chase. In 2017, he won $100 million in work for First Data Corporation. This was more than 2,000 times the average employee salary at the company at the time. The first data was later fused with Fiserv.
Sen. Peter Welch, a Vermont Democrat, said he is worried that Musk and his team are “shooting first and then aiming later,” and he has far more control over federal agencies than those who run them. Mr. Vignano tried to alleviate these concerns. “I think the president made it clear that Doge was there for input,” Vignano said.
Several senators have urged Visignano about false claims that President Trump and Musk have been repeating.
Vignano refused to contradict Elon Musk's repeated claims that Social Security is a “Ponzi Project.” When Sen. Katherine Cortez Mast, a Democrat from Nevada, asked him to answer “yes” or “no” to the statement, he said “it's a promise to pay.”
Some Democrats questioned whether Visignano's past solutions in the corporate world, such as relying on artificial intelligence for customer service, were suitable for social security beneficiaries, and Senator Wyden began blowing up Visignano to oversee the losses of thousands of workers in his private companies.
Republicans on the Senate Treasury Committee united to be ready to smooth the path to a full Senate vote. “You all know how to provide what we all want from Social Security, and we all look forward to moving forward with your nomination quickly,” Idaho Sen. Mike Krapo said at the end of the hearing.
Employees within Social Security say they hope that the next commissioner will provide stability, but the democratic senators were not optimistic. “You recently said on CNBC you're a fundamentally doge guy,” said Sen. Tina Smith, Democrat of Minnesota.
Tony Romm and Nicholas Nehamas contributed the report.
