Here’s what Americans need to know.
The new budget resolution put forward by House Republicans proposes significant reductions in “mandatory spending,” amounting to a $2 trillion cut. Naturally, this has raised concerns about the future of vital programs like Social Security, which currently helps provide financial support to over 70 million Americans.
With the Republican Party pushing to extend the Tax Cuts and Jobs Act (TCJA), this would lead to an additional $4.5 trillion in spending. President Donald Trump previously assured voters during his campaign that Social Security would not face cuts. However, as the details of this new budget unfold, there are still many uncertainties about how it will impact Social Security and other key programs.
The House GOP’s budget targets “mandatory spending,” which makes up a significant portion of the federal budget—around $4 trillion annually. Social Security alone accounts for roughly $1.5 trillion, or 21% of the entire federal budget. Other programs, like Medicaid and SNAP, would also face deep cuts under the proposed plan. These reductions are part of a broader effort to balance the budget while also pursuing tax cuts that would primarily benefit businesses and the wealthiest Americans.
Despite promises from the GOP to protect Social Security, many are concerned that the pressure to cut spending may lead to reductions in benefits or funding for this critical program. For example, proposed cuts include $230 billion for the Committee on Agriculture, $330 billion for the Committee on Education and Workforce, and a staggering $880 billion for the Committee on Energy and Commerce over the next decade.
Some Republican representatives insist that the proposed cuts to Social Security are focused on reducing wasteful spending within the program rather than affecting monthly benefits. However, critics warn that these cuts could harm the very people who rely on Social Security to make ends meet.
Financial experts like Kevin Thompson, CEO of 9i Capital Group, acknowledge that since Social Security is such a large part of mandatory spending, it is likely to face some level of scrutiny. However, Thompson points out that cuts to entitlement programs could backfire politically. Lawmakers are unlikely to risk angering their constituents by reducing benefits that so many depend on.
The Republican budget is not set in stone, and it still requires approval from the House Budget Committee before moving to the full House, where Republicans hold a slim majority. The fate of Social Security and other vital programs hangs in the balance as the GOP navigates its budgetary priorities. One thing is clear: any move to cut Social Security could have significant political ramifications for the party, especially given the program’s importance to millions of American families.