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If/When Cuts Hit the Call Center…

If/When Cuts Hit the Call Center…

/ Current Issue, People, , Technology, Self-Service, Artificial Intelligence
If/When Cuts Hit the Call Center…

Potential impacts of the Trump Administration's cost reductions.

In recent months, the Trump Administration, in collaboration with the Department of Government Efficiency (DOGE) led by Elon Musk, has initiated significant reductions across several federal agencies.

These actions, and others, have reportedly led to substantial, and in some cases immediate, workforce downsizing and the elimination of key services, including those providing direct support to citizens.

For instance, the Social Security Administration (SSA) had planned reductions in staff responsible for handling inquiries. This has led to fears of longer wait times for Social Security recipients seeking information or assistance.

But then the Administration announced a reversal of planned cuts after intense backlash. It seems as though only time will tell in the long-term, but uncertainty remains.

Similarly, the Department of Veterans Affairs’ (VA) call centers have faced downsizing and cancellation, which could affect support for veterans accessing essential services.

These developments raise concerns about how diminished government resources might shift the burden of customer support to private sector contact centers, which could affect support for veterans accessing essential services. These developments raise concerns about how diminished government resources might shift the burden of customer support to private sector contact centers. Thus necessitating strategic adjustments in handling increased and more complex inquiries.

What Do Americans Think?

To better understand how everyday Americans are feeling about the shrinking availability of government services, we at InMoment surveyed more than 1,000 U.S. residents between April 4 and April 6, 2025.

The nationally representative survey sheds light on public sentiment around government responsiveness, preferred support channels, and expectations in a climate of growing uncertainty.

Here’s what Americans had to say:

  • Phones are still the front door. Despite rising digital engagement, phone support remains the most trusted way to reach the federal government, preferred by 43% of respondents, especially among those aged 65 and older (49%). Email (25%) and online chat (17%) followed, while social media was the least favored at just 1%.
  • This data suggests that any cutbacks to live-agent phone support could disproportionately affect citizens who depend on it the most.
  • Fast, effective help is expected. A majority (63%) expect their issue to be resolved the first time they reach out, while nearly a quarter (24%) expect immediate self-service resolution.
  • Younger Americans are particularly impatient: 34% of those aged 18–24 expect instant self-serve resolution through digital channels.
  • Meanwhile, older adults (65-plus) overwhelmingly expect to resolve their issue during their first live contact (75%) with an agent. According to one respondent, “Many of us are older and need assistance fairly quickly. Those of us who have limited resources cannot usually wait for financial assistance when a federal check is lost, misplaced, or otherwise disappeared.”
  • Many [survey] respondents reported concerns about longer wait times, reduced service quality, and limited access to knowledgeable staff.
  • People are often disappointed. Most respondents (71%) expect to reach an agent by phone or chat within three to 10 minutes. For email, over half (53%) expect a response within two to three business days, while nearly a third (29%) expect it in less than 24 hours.
  • However, dissatisfaction with actual response times and resolution rates remains high: especially among older respondents.
  • They’re not giving up easily. When asked what they’d do if they couldn’t get help through their initial contact, most respondents said they’d persist: calling again, emailing, escalating, or reaching out to a representative.
  • This signals both a tenacity born from necessity and a mounting frustration with current service systems. Some responses to this question included, “I would continue to seek a response and try other approaches to get a response,” “I would call back to get someone else or ask for a manager,” and “Contact my Representative or Senator.”
  • Staffing cuts are already being felt. Many respondents reported concerns about longer wait times, reduced service quality, and limited access to knowledgeable staff.
  • The anxiety is particularly acute among seniors and retirees: 52% of those 65-plus and 53% of retired respondents said they are “very concerned” about their ability to get help in the future.
  • One respondent said, “I’m a retired person on Social Security and I’m deeply concerned that if I needed assistance from a real person, not a chat bot, that the help I needed would not be available.”
  • Political divides shape perception. While service expectations were relatively consistent across political lines, concern levels varied: 54% of self-identified liberals said they were “very concerned” about cuts, compared to just 15% of conservatives.
  • Liberals were also significantly less satisfied with current interactions than conservatives, suggesting that perception of service quality may be filtered through political lens as much as personal experience.
  • Trust is eroding. Beyond delays and confusion, many respondents voiced a deeper concern: a loss of trust in the federal government’s ability to manage these changes effectively. Some pointed directly to political leadership and what they see as mismanagement or indifference to the public’s needs.
  • The public has improvement ideas. Suggestions from respondents were clear and actionable: reduce wait times, improve staff training, and communicate changes more transparently. Many seemed to accept that resources are tightening but they expect smarter, more efficient service delivery in return.

Local, State Governments Must Be Prepared

The Trump Administration has promised, and has begun, shifting federal functions to state and local governments. This means that the volume and complexity of calls to their contact centers are likely to increase, and there will be confusion around whom to contact.

As the allocation of financial resources and the administration of services across local and state governments evolves, consumers will be looking for the current “rules of the road”: in a world where there will be lots of “road under construction” signs.

The states and local governments must prepare – including with their contact centers – for the big volume of inquiries from confused and worried citizens. Coordination across agencies and clear communication of whom to contact will be essential.

One example is the potential elimination of the Federal Emergency Management Agency (FEMA) where the Administration is looking to drive ownership of traditional FEMA functions to the states. It plans to make them responsible to bear the burden of providing resources and covering the financial cost of disasters.

Empathy training of agents and having very robust knowledge centers will be critical. The upside is the agents will have local knowledge and understanding that will enable them to connect effectively with the callers.

What Results Mean for Leaders?

The message from American consumers is loud and clear: they’re anxious, they’re persistent, and they still overwhelmingly rely on and expect direct, human support, especially over the phone.

As government services retract, the expectation for private organizations to step in and step up will only intensify.

...your agents must be prepared for emotionally charged conversations...

Our data shows a public that’s worried, frustrated, and expecting help from someone. That “someone” is often your contact center. Whether you’re in healthcare, finance, insurance, or beyond, your agents may become the default frontline for confused or underserved consumers.

For example, if someone’s Social Security check is late or delayed and they cannot get ahold of the SSA, they will call their bank for assistance to get support. And, while the banks may or may not be able to help, they will have to have scripts in place to manage the calls.

For customer experience (CX) and contact center leaders, this moment presents both a challenge and an opportunity. Here’s what to expect.

1. Prepare for increased volumes and complexity

As live support directly from government agencies becomes harder to reach, consumers will turn to whomever will pick up the phone.

That means calls directed to banks, as noted earlier, but also to healthcare providers, insurers, and even retail customer service centers. These will be often from people who are confused, frustrated, or looking for information they can’t get anywhere else or have traditionally called a government agency to receive.

Action: Audit your current call routing and escalation paths. Can your teams handle an influx of off-topic or government-adjacent inquiries? Do you have the voice and data handling capacity: and the ports and agents to handle the load? If not, then plan now.

2. Rethink training for empathy and knowledge

With expectations for first contact resolution (FCR) high, your agents must be prepared for emotionally charged conversations and equipped with the right context to help or redirect effectively. That’s especially critical in sectors where government services and private offerings overlap, like healthcare and finance.

Action: Expand training to include context on government programs, typical pain points, and emotional de-escalation techniques. Consider scenario-based training that reflects this new reality. And provide agents with quick access to online resources to answer questions.

3. Strengthen automation but don’t forget the human

Consumers - especially younger ones - expect robust self-service options. But even they will escalate to live agents if digital tools fail. Automation must be integrated seamlessly, not just bolted on, and needs to be intelligent enough to escalate appropriately.

Action: Invest in Conversational AI that can handle tier-one inquiries and escalate with full context. Use analytics from call center and chat interactions to continually refine automation strategies.

4. Go beyond surveys by integrating feedback channels

Survey data is helpful: but it only captures a sliver of the story. Today’s CX strategies need to ingest and analyze both structured and unstructured data from different channels: call transcripts, chat logs, agent notes, online reviews, and more. An integrated approach helps connect CX data from every touchpoint, channel, and perspective for a complete view of consumers.

Action: Implement tools and platforms that can integrate multiple feedback channels, and that can mine and interpret that data at scale, identifying emerging issues and sentiment shifts in near real time.

5. Get ahead of the brand impact

Consumers don’t always distinguish between public and private responsibility. When they’re failed by government systems, they may take their frustration out on the brands they can reach.

Companies that anticipate this and communicate proactively will come out ahead. We have used the word “opportunity” a couple of times in this article: this is definitely a time of opportunity for brands that can show value.

Action: Update your public messaging and agent scripts to show empathy for the broader service environment, while clarifying what your organization can do—and where to go for help you can’t provide.

Your Customers Still Need Answers

Federal agencies may be reducing their service footprint, but that doesn’t change two simple truths. Many of the services these agencies provide are critical to the people who receive them and many of these people still need support.

This is where contact center leaders have a chance to step up and not just reactively, but strategically. That means preparing teams for more complex calls, leveraging AI and automation to scale, and rethinking how you gather and act on customer insights.

Update your public messaging and agent scripts to show empathy for the broader service environment, while clarifying what your organization can do...

It means moving beyond surveys and embracing the full picture: every voice, every interaction, and every bit of data.

Your organization didn’t create the problem, but how you respond could define the experience your customers remember. And this can be great for your brand and bottom line as well.

Jessica Petrie & Jim Katzman

Jessica Petrie

 

Jessica Petrie, Director of Strategic Insights, InMoment has more than 15 years of experience and works with clients to uncover actionable insights from customer and employee data to improve their business outcomes. Her experience spans working with clients across a variety of industries including retail, food services, and healthcare.

 

Jim Katzman

Jim Katzman, Principal, CX Strategy & Enablement, InMoment is a seasoned professional with over 20 years of experience in CX strategy and management. Jim guides clients in utilizing the voice of the customer to enhance their customer experience and achieve financial value.

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CURRENT ISSUE: June 2025

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