President Franklin D. Roosevelt signs the Social Security Act on Aug. 14, 1935. (Photo by FPG/Archive Photos/Getty Images)
WASHINGTON — President Donald Trump signed a proclamation celebrating the 90th anniversary of Social Security on Thursday, though he offered no plans for avoiding insolvency and a steep drop-off in benefits within the next decade.
Trump, who campaigned on “saving” the income stabilization program for America’s seniors, said during an appearance in the Oval Office that Republicans would keep the program going.
But neither Trump, nor Republican leaders in Congress, have advanced legislation that would avoid a decrease in Social Security benefits in 2033, or begun to seriously address the issue.
“In the campaign I made a sacred pledge to our seniors that I would always protect Social Security and under this administration we’re keeping that promise and strengthening Social Security for generations to come,” Trump said. “You keep hearing stories that in six years, seven years, Social Security will be gone. And it will be if the Democrats ever get involved because they don’t know what they’re doing.
“But it’s going to be around a long time with us. Very much, you’ll be surprised to hear some of the numbers.”
‘One big, beautiful’ law speeds up fund depletion
The latest Social Security trustees report, released earlier this year, shows that without changes the Old-Age and Survivors Insurance trust fund will no longer be able to pay full benefits starting in 2033.
“At that time, the fund’s reserves will become depleted and continuing program income will be sufficient to pay 77 percent of total scheduled benefits,” the report states.
Republicans’ “big, beautiful” law will, however, speed up that timeline.
Karen Glenn, chief actuary for the Social Security Administration, wrote in a letter released earlier this month that the lower tax rates in the GOP law will reduce the amount of revenue flowing into the trust fund.
When combined with “increased program cost” associated with the new law, Glenn wrote “the reserve depletion date for the OASI Trust Fund is accelerated from the first quarter of 2033 to the fourth quarter of 2032.”
Bipartisanship needed
Republicans cannot restructure Social Security on their own and will need to negotiate with Democrats in the years to come if lawmakers want to avoid insolvency.
The budget reconciliation process, which GOP lawmakers used to pass their “big, beautiful bill,” cannot be used to address Social Security, making bipartisanship the only path to avoiding a decline in benefits for America’s retirees.
The Committee for a Responsible Federal Budget wrote in a post published Thursday that “solutions are needed soon to prevent insolvency and the statutorily required benefit cut.”
Without a new law to address the financial struggles facing the program, CRFB wrote, a “typical couple retiring just after insolvency will face an $18,400 cut in annual benefits.”
President Franklin Delano Roosevelt signed the law enacting Social Security on Aug. 14, 1935.
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Author: Jennifer Shutt
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