The US is facing a potentially catastrophic crisis that could push millions of senior citizens into poverty. A new analysis projects a 24% cut to Social Security benefits by late 2032, which would double the poverty rate among seniors and leave many struggling to access healthcare.
According to experts, this drastic measure would also lead to reduced healthcare access due to an 11% cut in Medicare hospital payments. The impact on vulnerable populations, including low-income families and older Americans, could be devastating.
The Social Security trust fund, which is the backbone of the US social safety net, is facing a critical shortage. The Treasury Department invested surplus funds into the system for decades, but since 2021, it has started tapping into its reserves to pay benefits. Once these reserves are depleted, Social Security would switch to “pay-as-you-go” payments, relying on incoming taxes.
Critics warn that this shift could be disastrous, particularly if Congress fails to act ahead of time. The recent tax cuts and deductions in the “big bill” would significantly reduce Social Security’s revenue, accelerating the depletion of its trust fund.
Social Security remains one of the most popular government programs, with widespread support across party lines. Experts argue that policymakers should prioritize addressing this critical issue, but current trends suggest little incentive for action.
The consequences of inaction could be catastrophic, including overcrowded emergency rooms, increased medical debt, and food insecurity. As healthcare experts and advocates warn, these cuts would blow a hole in the nation’s safety net, leaving many struggling to access basic necessities.
The US social safety net is under siege, with millions at risk due to impending Social Security cuts. Policymakers must act swiftly to address this crisis and protect vulnerable Americans from poverty and hardship.
Source: https://www.axios.com/2025/07/24/social-security-recipients-benefit-cut