Social Security’s trustees said in their annual report released Tuesday that the New Deal program will be unable to pay out full benefits by the end of 2032—a quarter earlier than projected last year—in the absence of congressional action, a finding that advocates said underscores the destructive impact of President Donald Trump’s policy agenda and the need to make the rich finally pay their fair share into the system.
“This is the first Social Security trustees report that begins to take Donald Trump’s second term policies into account: A tax bill that largely benefited the wealthy, economy-wrecking tariffs, a needless war with Iran, and hostility to immigrants,” said Nancy Altman, the president of Social Security Works. “All of these have reduced the amount of money going into Social Security, weakening the system’s finances.”
The trustees report was released a day after House Speaker Mike Johnson (R-La.) declared in a radio show appearance that “entitlement programs like Medicare, Medicaid, and things like Social Security” need to be “adjusted and fixed,” which critics say is euphemistic language for benefit cuts, given past GOP proposals such as raising the retirement age.
Johnson said the GOP intends to release a new Social Security plan “next year,” without providing any details.
The Democratic Congressional Campaign Committee (DCCC), House Democrats’ campaign arm, immediately pressed Johnson, suggesting he’s delaying Republican plans for Social Security and Medicare until after the 2026 midterms to avoid consequences at the ballot box.
“MAGA Mike Johnson won’t show the American people his secret plan to eliminate Social Security because he knows Republican policies are wildly unpopular and will be resoundingly rejected by the American people in November,” said Justin Chermol, a DCCC spokesperson.
The new trustees report projects that Social Security’s Old-Age and Survivors Insurance will be able to pay out full benefits “until the fourth quarter of 2032, one quarter earlier than projected last year.”
“At that time, the fund’s reserves will become depleted and continuing program income will be sufficient to pay 78% of total scheduled benefits,” the trustees said.
Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM), stressed that the new projection “does not mean that Social Security is going ‘bankrupt’ or ‘broke.’”
“Nor does the trustees report mean that benefits must be cut to maintain the program’s fiscal health,” said Richtman. “It would be grossly unfair to ask beneficiaries on fixed incomes to bear the cost of strengthening Social Security. While conservatives favor benefit cuts (such as raising the retirement age, means testing, or reduced COLAs), we advocate for revenue-side solutions where the wealthy pay their fair share.”
Specifically, NCPSSM and other progressive advocacy groups and lawmakers have called for raising the Social Security’s payroll tax cap, which currently exempts annual income above $184,500 from the program’s dedicated payroll levy.
Richtman said that lifting the payroll tax cap and “subjecting some of high earners’ investment income to Social Security taxes” would keep the program solvent “well beyond the 2030s.” He noted that Democratic lawmakers have introduced legislation to shore up Social Security’s finances by taxing the rich, but the bills have gone nowhere in the Republican-controlled Congress.
In a joint statement issued in response to the trustees report, Reps. John Larson (D-Conn.), Richard Neal (D-Mass.), and Lloyd Doggett (D-Texas) said that “instead of joining Democrats to protect and enhance” Medicare and Social Security, “Donald Trump and Republicans are busy sabotaging them.”
“After DOGE took a wrecking ball to the Social Security Administration under false pretenses, all Americans got were slashed customer service and their most personal data put at risk—without a penny saved,” the Democrats said. “Combined with their sole legislative achievement pricing millions out of coverage and putting Medicare on the chopping block, there is no greater threat to Americans’ wellbeing than Republican governance.”
Published with permission of Common Dreams
