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2024 Election Results Impact On Social Security Disability

The Impact of the 2024 Election on Social Security Disability

It might be too early to know the exact impacts the election will have on Social Security Disability. Regardless, Social Security is a vital financial safety net to millions of retirees and disabled Americans, providing a primary source of income to cover essential living expenses such as food, housing, and healthcare.

 

In September, The Biden administration finalized new rules for disability benefits, reducing penalties for people who receive federal food aid or informal assistance from friends or family, meaning some recipients will see extra cash in their Supplemental Security Income (SSI) because of the policy shift.

 

“By simplifying and expanding our policies, we are making SSI smarter, removing barriers to accessing payments, and reducing the burden on the public and agency staff,” Social Security Administration commissioner Martin O’Malley said when he announced the most recent change.

 

However, in January 2025 O’Malley’s terms will end. Most recipients liked the way he was an advocate for positive Social Security changes, dealing with the backlog of applications and trying to get the approval process to move forward smoothly.

 

 

2024 Electoral Map Results Impact on SSDI

 

Social Security Changes Under Trump

With Donald Trump entering his second Presidential term, the election has Social Security customers concerned about how his presidency will impact their benefits. “Based on actions taken during the first Trump administration, we are concerned with what (the) election will mean to the funding and structure of many important programs for people with disabilities like Medicaid, (Individuals with Disabilities Education Act) funding, enforcement of civil rights laws, among others,” said Eric Buehlmann, deputy executive director for public policy at the National Disability Rights Network. “Efforts to radically restructure Medicaid and pay for tax cuts for corporations by cutting other programs, are things we saw last time and expect to be tried again.”

 

Trump has been very vocal about his commitment to protecting Social Security, stating at a campaign rally in Florida, “I will not cut one penny from Social Security or Medicare, and I will not raise the retirement age by one day.” He also said, “Seniors should not pay taxes on Social Security, and they won’t.”

 

Pledging not to raise the retirement age, Trump also mentioned that the economic growth in the form of oil and gas, could help bolster Social Security’s finances. Although some argue that these measures would do little to address Social Security’s long-term funding shortfall.

 

Without a viable plan to replace lost revenue, the proposed changes to Social Security are unlikely to materialize, leaving the program’s long-term sustainability in question. Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, points out that despite the urgency of the situation, multiple administrations from both major parties have repeatedly deferred making necessary changes. He suggests that, aside from President Trump’s proposal to lower or eliminate taxes on benefits, it is unlikely that we will see any major changes to Social Security in the near future.

 

Trump vowed to end taxes on Social Security retirement benefits on his campaign trail, though that promise could be hard to keep. “You would have to have bipartisan buy-in to do that and it’s hard for me to imagine that happening,” said Charles Blahous, a senior research strategist at the Mercatus Center at George Mason University who specializes in Social Security. Any changes to Social Security’s taxation structure requires 60 votes in the Senate, meaning Republicans and Democrats would have to work together to make it happen, Blahous pointed out.

 

Trump needs to propose a plan to increases revenue before lawmakers will agree to slash taxes because in roughly a decade, retirees could see their benefits slashed by 21% if Congress doesn’t take action. Ending taxes on benefits, accounting for 4% of the retirement program’s income, would squeeze the program further.

 

About 40% of Social Security recipients pay federal income taxes on their benefits, according to the Social Security Administration. For now, no one should go shifting their retirement strategy based on any potential changes, as they may not even happen.

 

Kim Musheno, vice president of public policy at the Autism Society of America, said her group is particularly worried about any moves the new administration might take to retool health care policies that benefit people with disabilities. “The Affordable Care Act has been life changing for everyone, especially those with pre-existing conditions, such as autism. Medicaid is literally a lifeline for people with disabilities who depend on home and community-based supports to be able to live with their families, work in the community and stay out of more expensive institutions,” she said. “We fought back attempts to repeal the Affordable Care Act and proposals to (cut) Medicaid before. If similar proposals come forward in the new Congress, we will be ready to defend them again.”

 

Experts hint that Trump’s second term will look very similar to his first were there were very few changes to Social Security. Kevin Thompson, finance expert and founder and CEO of 9i Capital Group echoes this sentiment, expressing skepticism that Social Security will undergo significant changes under the new administration. He believes that much of the rhetoric surrounding Social Security reform is just that—rhetoric—and that there is no money in the budget to offset the cost of eliminating taxes on benefits.