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17h ago

One Big Beautiful Bill Act Pushes Social Security Trust Funds Toward Insolvency Faster

Lawmakers face pressure to shore up funding after new analysis shows the measure accelerates the trust funds’ exhaustion.

In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, DC.
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An older woman is holding a sign that reads "We need social security."

Overview

  • The combined Old-Age and Survivors Insurance and Disability Insurance trust funds are now projected to deplete in the first quarter of 2034, six months earlier than under prior estimates.
  • The standalone Old-Age and Survivors Insurance fund exhaustion date has moved up to the fourth quarter of 2032, three months sooner than before.
  • The 75-year actuarial balance worsens by 0.16 percentage points of taxable payroll as income tax deductions reduce trust-fund revenues.
  • Net program costs will rise by $168.6 billion through 2034 due to lower revenue from income taxation of Social Security benefits beginning in 2025.
  • Absent new revenue or benefit adjustments, beneficiaries could face an automatic 24 percent cut in scheduled payouts in late 2032, affecting 62 million Americans.