REAGAN SUSPENDS BENEFITS CUTOFF
The Reagan Administration today suspended its efforts to cut off Social Security disability benefits. It ordered that benefits be continued or restored for 40,000 of the people who are challenging their removal from the rolls. Although the action had been expected, it demonstrated an extraordinary reversal of policy by a Government agency that has been conducting what John A. Svahn, the former Commissioner of Social Security, once described as a ''crackdown on ineligibility.'' The review, which started in March 1981, found more than 485,000 recipients ineligible, and 150,000 to 200,000 people ultimately lost benefits, prompting a political, judicial and legislative furor. Under strong pressure, Administration officials began signaling today's action last month.
