WASHINGTON, D.C. — President Donald Trump signed a proclamation Thursday to honor the 90th anniversary of the Social Security Act of 1935. During the event, he touted his administration’s commitment to the program, claiming his recent tax law will provide significant benefits for seniors and that the program is now on a more stable financial footing.
“Today, we celebrate the 90th anniversary of one of the most significant pieces of legislation ever signed into law,” Trump said. “During the campaign, I made a pledge to our seniors that I would always protect Social Security, and under this administration, we’re keeping that promise and strengthening Social Security for generations to come.”
However, several of the president’s claims regarding the program’s finances and his administration’s accomplishments were disputed by nonpartisan experts and recent government analysis.
Claim: Seniors Will No Longer Pay Social Security Taxes
President Trump stated that his “mega tax-and-spending-cuts package,” signed in July, means seniors “will no longer pay taxes on that income.” The White House made a similar assertion, but this is not the case.
The legislation does not eliminate taxes on Social Security income. Instead, it provides a temporary $6,000 tax deduction for individuals aged 65 and older who file singly and double that amount for joint filers. According to an analysis by the nonpartisan Urban-Brookings Tax Policy Center, this deduction will benefit less than half of older Americans. The greatest beneficiaries will be those earning between $80,000 and $130,000, who will see an average tax reduction of about $1,100.
Claim: Social Security’s Finances Are Better
President Trump praised Social Security Commissioner Frank Bisignano, asserting that the program’s finances are no longer at risk. “Not anymore, it’s not,” he claimed, referencing past reports of the program’s potential insolvency.
However, the latest annual report from Social Security’s trustees projects that the program still faces a shortfall and will be unable to pay 100% of benefits by 2034 unless Congress acts. At that point, payroll tax revenue will only cover 81% of scheduled benefits. Furthermore, an analysis by the Committee for a Responsible Federal Budget estimates that the new tax law could accelerate this insolvency date by a year or two due to reduced tax revenue.
The funding shortfall is a long-standing issue caused by demographics and other factors. To close the gap, lawmakers would need to consider a range of solutions, including raising taxes, increasing the retirement age, or adjusting the benefit formula.
Claim: Social Security Services Have Greatly Improved
The president also lauded the administration’s efforts to improve Social Security services, including shortened call wait times, a reduced disability claims backlog, and improved online account access.
Commissioner Bisignano, who attended the event, announced a goal to make the agency “digital first” and to have 200 million Americans sign up for online SSA accounts by the end of next year.
Despite these claims of improved metrics, the agency has reduced the number of performance indicators it posts publicly, making direct comparisons difficult. Currently available data shows that less than half of calls (47.1%) are answered within two hours. Additionally, the SSA recently proposed changes to identity verification that raised concerns from advocacy groups like the AARP about potential service access issues for seniors. Senator Elizabeth Warren has requested an audit of the agency’s customer service following a reduction of approximately 7,000 employees and the implementation of a new AI tool on its national 800 number.
