A new report examining the effects of President Donald Trump\u2019s \u201cOne Big Beautiful Bill Act\u201d (OBBBA) shows that it will cause Social Security funds to be depleted more quickly, resulting in significant benefit cuts for new retirees starting in the next decade. <\/p>\n
The analysis from the Committee for a Responsible Federal Budget<\/a>, a nonpartisan watchdog group that provides insight and advice on federal spending measures, finds that there is \u201conly a little more than seven years\u201d until the Social Security trust fund reaches insolvency.<\/p>\n Concerns over the solvency of Social Security have been discussed for quite some time. However, OBBBA accelerates the rate at which insolvency will be reached, the report pointed out, stating:<\/p>\n Never miss another story<\/p>\n Get the news you want, delivered to your inbox every day.<\/p>\n The law dictates that when the trust funds deplete their reserves, payments are limited to incoming revenues. For the Social Security retirement program, we estimate that means a 24 percent benefit cut in late 2032, after the enactment of OBBBA. <\/p>\n For the average dual-income couple retiring in 2033, those cuts would amount to more than $18,000 in fewer benefits annually. <\/p>\n Related Story<\/p>\n \n The bill will accelerate depletion of Social Security and Medicare\u2019s trust funds by a year, according to an analysis.\n <\/p>\n Trump frequently promised during the 2024 presidential campaign that he wouldn\u2019t touch Social Security<\/a>. Yet this outcome is exactly what the Committee for a Responsible Federal Budget predicted<\/a> in October 2024, with the organization stating that Trump\u2019s tax and economic proposals would lead to benefit cuts within six years.<\/p>\n \u201cI don\u2019t think I\u2019ve ever seen a plan that would have this big of a negative effect on solvency in a general election campaign,\u201d Marc Goldwein, the committee\u2019s senior policy director, said at the time.<\/p>\n The group also rejects the concept of \u201cnot touching\u201d Social Security, noting that something more direct must be done to keep the popular program afloat. According to the report<\/a>:<\/p>\n Policymakers pledging not to touch Social Security are implicitly endorsing these deep benefit cuts for 62 million retirees in 2032 and beyond. It is time for policymakers to tell the truth about the program\u2019s finances and to pursue trust fund solutions to head off insolvency and improve the program for current and future generations. <\/p>\n Without any action by lawmakers soon, the poverty rate among elderly Americans could double, several other estimates have suggested<\/a>. <\/p>\n Although retirement is just one aspect of Social Security, Sen. Bernie Sanders (I-Vermont), recognizing the looming crisis, introduced legislation this month that aims to tackle what he calls \u201cthe retirement crisis\u201d in the U.S.<\/a> <\/p>\n The proposal would require corporations to offer workers \u201ca traditional pension plan that guarantees a monthly income in retirement,\u201d Sanders said in announcing his plan. If a corporation fails to do so, workers \u201cmust be allowed to receive the same type of pension that every member of Congress receives,\u201d he continued.<\/p>\n The bill, titled the Pensions for All Act, would bolster previous plans offered by Sanders to strengthen Social Security.<\/p>\n \u201cIf we can guarantee a defined benefit pension plan for members of Congress, we can and we must provide that same level of retirement security to every worker in America,\u201d Sanders added.<\/p>\n An urgent appeal for your support<\/p>\n With Trump\u2019s fascist agenda driving the narrative, it\u2019s the duty of independent media to disrupt corporate propaganda.<\/p>\n Yet, at such a pivotal moment, donations to Truthout have been declining. Why? Blatant political censorship from Big Tech.<\/p>\n As we face mounting repression, Truthout appeals for your support. Your tax-deductible monthly or one-time gift is the difference-maker that fuels our movement journalism. Please give if you can<\/p>\n
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