Impact of COVID-19-induced SSA Field Office Closures on Disability Benefit Applications

• In Event: Disability, Health Insurance, and Access to Care

Abstract

This paper evaluates how the COVID-19-induced closures of more than 1,200 Social Security Administration (SSA) field offices affected access to federal disability benefits in the United States. In response to the pandemic, the SSA closed all of its field offices in March 2020, maintaining only limited services for urgent cases. To preserve access, the agency expanded remote options, including online applications, local phone support, and mail-based document processing. While SSA had already begun transitioning to digital service delivery prior to the pandemic, these closures marked an unprecedented shift in how millions of individuals interacted with a critical component of the U.S. social safety net.

Contrary to expectations that economic downturns increase applications for disability benefits, both Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) applications declined substantially during the pandemic and have yet to return to pre-pandemic levels. While some scholars attribute this trend to expanded unemployment insurance and economic relief payments delaying benefit claims, this paper investigates an alternative and understudied mechanism: the impact of limited in-person access to SSA offices.

Using a ZIP-code-level panel dataset covering SSA beneficiary records from 2015 to 2023, I implement a difference-in-differences framework to estimate the causal effect of office closures on the number of newly approved disability beneficiaries. I focus on ZIP codes served by SSA field offices prior to closure, comparing trends in those areas to control ZIP codes not directly linked to an office. To address potential confounding from spatial correlations, I conduct robustness checks using distance-based control groups, comparing treated areas to ZIP codes located more than 20 miles away from the nearest office. I also estimate event-style models to assess the persistence of the effects over time, including the period following office reopening in April 2022.

The results indicate that SSA field office closures led to a significant and persistent decline in new disability benefit awards in the affected ZIP codes. The effect is especially pronounced in non-metropolitan and rural areas, suggesting that remote alternatives have not effectively substituted for in-person assistance in these regions. Notably, declines in benefit uptake persist through 2023, well after offices resumed normal operations, pointing to longer-term disruptions in program access and administrative processing.

This study contributes to ongoing debates about equity and accessibility in public service delivery. The findings underscore the critical role that local administrative presence plays in enabling participation in federal programs, particularly among vulnerable populations with limited internet access or lower digital literacy. As governments continue to expand digital infrastructure, this research highlights the importance of preserving in-person services for populations most at risk of exclusion. By revealing the geographic disparities in the resilience of service delivery, the paper offers actionable insights for SSA and other agencies aiming to build a more inclusive and accessible post-pandemic public administration.

Author

• Caroline Welter, West Virginia University
  Presenting Author