Previously we have noted that President Donald Trump’s fiscal year 2021 budget proposal would be harmful to Social Security, Medicare and Medicaid if enacted because he is looking to save money on benefits paid to Americans, but the administration is also trying to underfund the entire agency with this proposal.
Trump’s budget proposal will not be enacted and ultimately Congress will work with the White House to fund the government when fiscal year 2021 begins in October, but if Trump had his way Social Security’s budget would not even increase to an inflationary level. Trump’s budget proposal, which can be found here, calls for a funding level of $13.71 billion, which is just slightly ahead of the previous year’s $13.30 billion, but does not come close to keeping up with inflation. This will not do any favors for Social Security Commissioner Andrew Saul, who has set an agenda to try and improve the agency’s customer service. Under Trump’s proposed budget the agency would employ over 400 less workers than in the agency’s previous budget. Below are some other examples of how Trump’s budget proposal would look to save money on Social Security programs.
- Reduction of improper payments: The administration will look at ways of reducing improper disability payments through a new reporting system, which the budget proposal says would save $11 billion over 10 years.
- Collection on overpayments: Social Security would increase the minimum amount it can withhold from benefits for people who were previously overpaid by Social Security. Rather than the minimum amount being $10 a month, it would now be 10 percent of the monthly benefit amount.
- No more bankruptcy: Social Security debts for overpayments can be discharged though bankruptcy, but the agency is looking to change that unless it would result in an undue hardship.
- Card fees: Social Security would institute a fee for replacing a Social Security card.
