In Washington, D.C., there’s a buzz of concern among advocates and citizens regarding potential Social Security cuts, as legislators are busy trying to curb government spending.
The clock is ticking for Congress to extend federal government funding by March 14 to avoid a shutdown. Under the Trump administration, there was talk of slashing $2 trillion in government spending. Given that Social Security represents 21% of the budget, amounting to $1.5 trillion for 2024, many fear it could be on the chopping block.
So, what should we be watching when it comes to Social Security in these negotiations?
Benefit Cuts Shielded in Budget Deals
Last year, a large group of House Republicans from the Republican Study Committee pitched a budget idea to trim federal spending by $17.1 trillion over the next decade. Part of this included bumping up the Social Security retirement age to 69. Right now, depending on your birthdate, you can claim full benefits between the ages of 66 and 67.
If this change were to happen, those born after 1971 might face average benefit cuts of 13%, as highlighted by the Congressional Budget Office. However, there’s good news for now: The Byrd Rule means no changes to Social Security benefits can be included in the forthcoming budget reconciliation. Maria Freese from the National Committee to Preserve Social Security and Medicare explains this rule helps block unrelated amendments.
Even though raising the retirement age did pop up in Senate talks last December, there’s a possibility it could resurface in discussions. “Whenever Congress gets the chance, I’d bet they’ll revisit it,” Freese mentioned. "Just not in reconciliation." Meanwhile, former President Donald Trump has stood firm against trimming Social Security, except when fighting waste or fraud.
Not Funding the Agency Could Dent Customer Service
When renewing federal spending, lawmakers will need to consider how much the Social Security Administration (SSA) should receive for services like call centers and disability evaluations.
Over the past ten years, budget cuts have already strained the agency’s customer service, as reported by the Center on Budget and Policy Priorities. They note the SSA’s staff count fell by 11% between 2010 and 2024, even as the number of beneficiaries soared by 24%. According to their findings, “Further underfunding SSA would compromise the quality of service beneficiaries deserve.”
Without more cash, the agency could face delays in rolling out the Social Security Fairness Act, which aims to boost benefits for more than three million people. Freese pointed out that "Congress has consistently short-changed the agency." This has left the SSA vulnerable, especially with all the recent scrutiny concerning beneficiaries over 100 years old.
“Upgrades to computer systems and anything deemed nonessential are usually the first to go,” Freese added.
