America’s next president, and the class of senators elected this November, seem all but guaranteed to face the politically perilous task of addressing Social Security’s imminent insolvency before the end of their term. For that, they can thank President Trump.
On Tuesday, the program’s trustees confirmed that its Old Age and Survivors Insurance trust fund is now set to run out of money in 2032 — one year earlier than they previously projected. If policymakers fail to act before then, more than 70 million beneficiaries will face an automatic 22% benefit cut.
Why did the deadline for action move up? Largely because of Trump’s costly tax cuts. The president’s One Big Beautiful Bill Act created a large new deduction for seniors, which put a major dent in one of Social Security’s major revenue sources — the income taxes on benefits paid by higher-income beneficiaries. His restrictionist immigration policy has also reduced revenue coming into the program from payroll taxes paid by foreign-born workers.
Social Security had, of course, been running unsustainable annual budget deficits long before Donald Trump took office. But his actions ensured the clock will run out on this once-in-a-generation budget time bomb before the end of his successor’s first term, and likely when they’ll be in the midst of a re-election campaign.
