Speaker of the House Mike Johnson delivered an update on Congress's plans for Social Security Tuesday.
When asked if lawmakers were open to cuts to entitlement programs like Social Security and Medicare, Johnson expressed his support for their continued funding.
Why It Matters
Social Security benefits roughly 70 million Americans, many of whom are retired workers relying on the monthly payments during their golden years.
However, the Social Security Administration is currently facing a funding crisis. Without any changes to the program, the fund is set to run out of money for full payments by as early as 2035.
While some lawmakers have proposed cuts to the program or suggested raising the retirement age to help get Social Security back on financial track, many of the initiatives prove unpopular with voters.
This is especially true for the Republican Party, which has a large older, retired voting bloc.
What To Know
"The president has made very clear. Social Security and Medicare have to be preserved," Johnson said in a press conference Tuesday.
"No one is coming in with the intention of cutting benefits in any way or anything, but we have to look at all spending and look at it very deliberately while maintaining those commitments."
Johnson went on to say that the Republican Party would not be cutting benefits, but there are many areas of fraud and waste that will be audited in the future.
What People Are Saying
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: "Johnson has pledged that Republicans will uphold their commitment not to cut entitlement programs like Social Security. I believe they will avoid addressing the issue directly and leave it for the next administration to tackle, as this stance was a key part of their campaign. However, if Trump were to seek a lasting legacy—something that aligns with his character—he might attempt to reinforce entitlement programs in a way that cements his place in history, much like FDR did with Social Security."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Johnson is backing up President Trump's campaign promise to not cut Social Security moving forward, which seems like a safe bet. Social Security remains a sensitive topic with current and future beneficiaries and rightfully so. They want to receive the benefits they've spent a lifetime paying into and to make any dramatic change could cause serious pitfalls for the party in power. Still, changes will have to be made long-term for the stability of the program. It's just hard to see either party taking the blame for having to make those hard decisions."
Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "With his recent comments, Speaker Johnson seems to be focusing on the size and scope of internal administration costs of these programs, although past Republican proposed legislation has centered around means-based testing and lower cost of living adjustments while perhaps increasing the base payment for the poorest of retirees."
What Happens Next
The future of Social Security remains uncertain, Thompson said. And without significant changes to the program, beneficiaries are facing a roughly 20 percent cut in benefits by 2035.
This is because more Baby Boomers are retiring into the system and there are fewer younger workers to pay into the program.
"Significant measures will be required to address the funding crisis, such as increasing the payroll tax on working-class Americans or raising federal taxes to cover the shortfall," Thompson said. "However, these solutions are politically unpopular and could be a tough sell for lawmakers, making meaningful reform a challenging prospect."
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