President Donald Trump has made several changes to Social Security, impacting retirees. In June 2024, he told supporters he wouldn’t cut a single penny from Social Security or Medicare. However, his administration is reducing costs through the Department of Government Efficiency (DOGE). This includes reducing staffing targets and identifying cost savings opportunities.
The Social Security Administration has reported total savings of over $800 million in fiscal 2025. While this is significant, it’s still less than the $110 billion deficit built into its budget for the same period. The administration also wants to end the taxation of Social Security benefits, which could accelerate the timeline of the trust fund becoming insolvent.
The Social Security trust fund is projected to be depleted by 2035, and ending taxes on benefits would bring potential benefit cuts closer. A recent study shows that eliminating taxes on Social Security could result in a $1.5 trillion loss in revenue over the next decade, leading to earlier benefit cuts.
Despite concerns, Congress has historically avoided allowing the trust fund to become insolvent. However, it’s unclear whether lawmakers will find a solution before benefit cuts are necessary. The administration’s plan to eliminate taxes on Social Security remains problematic due to its potential impact on the funding problem and timeline for benefit cuts.
Source: https://eu.usatoday.com/story/money/personalfinance/retirement/2025/04/07/retirees-trump-social-security-changes/81887138007