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CBO offers Congress options for saving Social Security, Medicare, Highway Trust Fund from insolvency
Biden’s proposals undermine social security: Scalise
Rep. Steve Scalise, R-La., calls out President Biden’s economic policies on ‘Kudlow.’
The Congressional Budget Office (CBO) recently released a pair of reports offering options for reducing the federal budget deficit that could provide a roadmap for lawmakers to save Social Security, Medicare and the Highway Trust Fund from becoming insolvent over the next decade.
According to CBO's projections from last year, the three major trust funds will be tapped out over the next 10 years – the Highway Trust Fund will be exhausted in 2027, Medicare's Hospital Insurance Trust Fund in 2030, and Social Security's Old-Age and Survivors Insurance Trust Fund in 2033. Updated estimates will likely be provided in the weeks ahead as the CBO releases new budget forecasts.
Once those trust funds are exhausted, the programs they help finance will have to rely solely on incoming tax revenue and reduce spending unless Congress takes action as it has in the past to shore up the trust funds. If the trust funds become insolvent, Social Security benefits would be cut by a projected 23%, Medicare's hospital spending by 10%, and highway spending by 45%.
BIPARTISAN TRUST ACT AIMS TO SHORE UP SOCIAL SECURITY, MEDICARE, HIGHWAY TRUST FUNDS