Trump’s BIG Plan for Social Security: Trump joined the White House as 47 president of USA on Monday 20 January 2025. More than 67 million seniors in the country are worried about the upcoming decision regarding social security payments. Social security benefits are one of the famous program in USA where social security administration monthly release the financial assistance to senior citizen and disabled citizens.
However currently beneficiary are getting 2.5% increase the payment due to COLA increment. But as per financial reports, the government do not have sufficient fund to manage social security payments in future. To Trump have a challenge to manage social security funds as he promised to not cut any social security income if he elected in election.
Trump’s BIG Plan for Social Security 2025
The federal government is managing social security payments of the senior citizens who have cured the age of 67 from different sources including tax, Oil storage etc.
But according to the reports number of beneficiaries are continuously increasing where more than 67 million seniors are getting monthly benefits from SSA.
The government have to spend more than 1.3 trillion dollars annually to manage the social security payments of the beneficiaries.
However, the government is collecting regular tax and other payments from different sources but if they follow the same structure then the Treasury will not be able to afford it by 2035. So 17% beneficiaries will not able to get such payments after 2035.
If the government follow the same structure of the payment and do not refine it in further years then number of disqualified citizens can be reached upto 27% by 2098.
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Trump have to manage SSI crisis
Donald Trump is the 47th president of USA who is elected for the second time as a president. So it is his last term as President of the USA. His decisions will decide the upcoming policies of the future presidents in USA who will take charge after 2029. However during in the election campaign, Donald Trump have said that he will not this continue benefits of social security.
Apart from this he also promised people to remove tax on social security payments. But this Initiative will not help the government to arrange money for social security payment for a long time but will reduce the fund with more speed.
What does Trump Plan do?
In December 2023, as Donald Trump prepared to run against Joe Biden and the Democrats, he made a promise not to cut Social Security. The 78-year-old former president claimed that there is plenty of untapped money in the U.S., particularly from natural oil and gas reserves, which he suggested could help address the financial issues facing Social Security.
Despite his assurances, Trump did not provide any specific plans on how he would implement this idea. He spoke generally about how Republicans would work to “restore economic stability” and “ensure the long-term sustainability” of the Social Security program.
However, a report from the Committee for a Responsible Federal Budget (CRFB) raised concerns about Trump’s claims. They found that the potential revenue from natural gas reserves would only cover less than four percent of the funding shortfall that Social Security is experiencing. This suggests that relying on these reserves may not be a viable solution to the program’s financial challenges.
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What are social security benefits
Social security benefits are federal sponsored payment programs in USA which are running by SSA. The program is specially designed for Senior citizens and disabled citizens who have crossed the age of 67. It provides a monthly payment for individuals and couples according to their income and assets.
Most of the seniors are getting $930 or more in this program. The payment is increased annually according to the COLA increment where authority is currently providing 2.5% COLA for 2025.
