Combined Social Security Trust Fund Projected to Deplete Reserves by 2035

Social Security

Two reports released Monday show that the U.S. combined Social Security trust fund is projected to deplete its reserves by 2035.

The Trustees for Social Security and Medicare released annual reports on Monday. The Trustees projected the Medicare Hospital Insurance trust fund will exhaust its reserves in 2036. The Social Security Old-Age and Survivors Insurance (OASI) trust fund was projected to be insolvent by 2033.

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Feds Borrowed $6 Billion Per Day So Far This Fiscal Year

Maya Macguineas

The U.S. federal government has borrowed about $6 billion per day so far this fiscal year with little indication of slowing down.

The U.S. Treasury Department released its figures for the month of March showing it borrowed $236 billion in March alone, bringing the total to $1.1 trillion for this fiscal year, which runs from October to September.

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CBO Reports Grim Long-Term Outlook for Federal Government

Couple paying bills

The Congressional Budget Office on Wednesday released a bleak outlook for the federal government with new projections that show debt levels will reach their highest levels ever in five years.

“Debt held by the public, boosted by the large deficits, reaches its highest level ever in 2029 (measured as a percentage of GDP) and then continues to grow, reaching 166 percent of GDP in 2054 and remaining on track to increase thereafter,” according to the CBO report. “That mounting debt would slow economic growth, push up interest payments to foreign holders of U.S. debt, and pose significant risks to the fiscal and economic outlook; it could also cause lawmakers to feel more constrained in their policy choices.”

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Watchdog: Biden’s 2025 Budget Would Drive National Debt to $45 Trillion in 10 Years, 106 Percent of GDP

The Committee for a Responsible Federal Budget (CRFB) a budget watchdog group, found that President Joe Biden’s fiscal year 2025 budget would drive the national debt to $45.1 trillion or 106 percent of the U.S. Gross Domestic Product (GDP) by 2034, from $27.4 trillion or about 97 percent of GDP at the present time.

The organization noted that those calculations are based on the Biden administration’s own internal figures. The current $27.4 trillion debt figure is the debt held by the public, not the total national debt including intragovernmental holdings.

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Social Security Recipients to Get a 3.2 Percent Benefits Increase in 2024

The Social Security Administration announced Thursday that benefits will increase 3.2% in 2024 for the country’s over 70 million recipients. 

This will result in the average monthly check for a retired worker to rise to $1,907. That’s up $59 from $1,827 this year, according to Forbes.

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Commentary: Any Debt ‘Default’ Will Be Biden’s Choice

There’s enough revenue to pay interest on the debt even if the $31.4 trillion debt ceiling is reached.

Meaning, if the U.S. defaults on the debt on June 1, it will be because President Joe Biden chose not to make principal and interest payments on U.S. Treasuries out of existing revenue, for which there is more than ample revenues to service and refinance up to the current debt ceiling limit, $31.4 trillion.

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Commentary: Insane Deficit Spending Is Immoral

In Armageddon, Bruce Willis blows himself up on an asteroid to save his daughter and all of humanity. (Sorry for the spoiler, but the movie is 25 years old.) That theme—parents providing for, and sacrificing for, their children—is the deeply moral and moving story that Americans used to love. 

I say “used to,” because something troubling has happened. We now accept that young people should be worse off for a lifetime in order to benefit those who have already lived full, comfortable lives. We saw this during COVID-19, when an elderly leadership class locked children out of classrooms, playgrounds, friendships, and sports, and wiped out jobs, training, and mentorship for young workers.

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Commentary: The Interest Alone on the National Debt Will Hit $1 Trillion in 2024 as Reserve Currency Status Is Questioned

Gross interest owed on the $31.4 trillion national debt — that is, interest owed on both the $24.9 trillion publicly traded debt and the $6.7 trillion debt in the Social Security, Medicare and other trust funds — will reach a gargantuan $1 trillion in 2024 for the first time in American history, according to the latest data gathered by the White House Office of Management and budget.

To put that into perspective, that is more than is spent on national defense related spending, currently $814 billion.

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‘That’s a Lie’: GOP Senator Presses Janet Yellen on Plan to Pay for Social Security

Republican Sen. Bill Cassidy of Louisiana accused the Biden administration of lying about its commitment to working with Congress to protect seniors’ social security benefits at a hearing of the Senate Finance Committee Thursday.

Cassidy asked Treasury Secretary Janet Yellen, who was testifying about President Joe Biden’s proposed budget for the fiscal year 2024, if the president was aware that “when [Social Security] goes broke in nine years” there would be a 24% cut in benefits for current recipients.

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Republicans Say Biden Lied About Their Position on Social Security, Medicare to Scare Seniors

Congresswoman Marjorie Taylor Greene wasn’t alone Tuesday night in openly arguing President Biden in his State of the Union address misstated House Republicans’ position on the future of Medicare and Social Security. “I think, because he lied, it was a frustration,” Kentucky GOP Rep. Thomas Massie told Just the News after Biden’s roughly 72-minute address.

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Commentary: Income Inequality in America Is an Engineered Myth

The federal government significantly and intentionally misreports income distribution, sparking bad policies and political divisions.

That’s the argument former senator Phil Gramm and two other economists, Robert Ekelund and John Early, lay out in their compelling and essential new book, “The Myth of American Inequality: How Government Biases Policy Debate.”

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Social Security Now Allowing People to Choose Their Own Gender

The Social Security Administration will allow people to self-select their sex on social security documents without providing legal or medical documents to verify their sex, according to a Wednesday announcement.

The agency will accept individuals’ self-identification regardless of whether it matches their other documents and will supply Social Security cards accordingly, the agency announced. The move comes amid a push from the Biden administration to facilitate gender transitions and help transgender people change their sex on government records more easily.

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Social Security Cost-of-Living Adjustment Gets Biggest Bump in Decades to Keep Up with Inflation

The Social Security Administration (SSA) announced the largest increase to the Social Security cost-of-living adjustment in over three decades due to high inflation.

The SSA announced that supplemental income benefits, which are paid to beneficiaries in addition to their regular benefits to offset inflation and other unexpected costs, would increase by 8.7%. This would, on average, increase benefits by $140 per month for most beneficiaries, beginning in January of 2023.

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