Trump Promised Not to Cut Social Security. He May Have Done So By Accident

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Is Social Security going to have to cut benefits? That’s the big question on many people’s minds in light of the latest Trustees report.

In June, the public got an update on the program’s finances, and it wasn’t a positive one. The Trustees reported that the Social Security trust fund that pays retirement benefits is expected to be depleted as early as 2032. Once that happens, a 22% benefit cut could be in the works.

For those who have been following Social Security, this isn’t news. The program’s Trustees have been sounding alarms about Social Security’s impending shortfall for years. But President Trump may have further fueled Social Security cuts without actually meaning to.

Why Trump’s policies have been a setback

Trump pledged repeatedly during his presidential campaign not to cut Social Security. If anything, he said his aim would be to do away with taxes on benefits so seniors could keep more of their money.

Trump wasn’t able to eliminate those taxes permanently. But as part of his One Big Beautiful Bill Act (OBBBA), he introduced a temporary $6,000 senior tax deduction.

What that deduction does is exempt enough income from taxes that an estimated 88% of Social Security recipients aren’t paying taxes on their monthly benefits. But that’s not necessarily a win for seniors.

By exempting most Social Security recipients from paying taxes on their benefits through 2028, which is when the $6,000 senior deduction is set to expire, Trump is costing Social Security billions of dollars. When combined with other OBBBA tax changes, the bill is expected to result in $168.6 billion in lost revenue for Social Security through 2034.

Prior to the OBBBA, Social Security was not looking at potential benefit cuts until 2032. Following its implementation, that timeline has been pushed up by a year.

And that’s just the projection in 2026. It’s hard to know what the Social Security Trustees might have to say in 12 or 24 months from now, but it’s possible that the program’s trust fund depletion date will be pushed up even more.

Should Americans brace for Social Security cuts?

Even though Trump promised not to cut Social Security, his OBBBA could push the program closer to insolvency. That’s something working Americans and retirees need to prepare for.

Granted, lawmakers have never allowed Social Security to cut benefits broadly, so it’s not a given that that’s going to be the outcome based on the current projected financial shortfall. But it’s best to prepare for potential Social Security cuts just in case.

If you’re retired:

• Immediately assess your spending and see where you can cut costs.
• Try to work part-time to boost your income.
• Review your portfolio and make sure it’s generating income for you.

If you’re still working:

• Try to boost your retirement savings rate, even if you do so gradually.
• Make sure to claim all matching dollars available in your 401(k).
• Get into the habit of budgeting so you’re able to invest consistently.
• Choose assets that can outpace inflation over time so you’re able to build a sizable nest egg.

All of these steps could improve your financial outlook even if Social Security doesn’t end up reducing benefits, so they’re good things to do regardless of what happens with potential cuts.

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