Friday, February 27, 2026

 
In March 2025, the nonpartisan Congressional Budget Office (CBO) estimated the trust fund that pays for Medicare A would be solvent until 2052. On Monday, it updated its projections, saying the funds will run out in 2040. The CBO also expects the Social Security trust fund to run dry a year earlier than previously expected, by the end of 2031. As Nick Lichtenberg of Fortune wrote, policy changes by the Republicans under Trump, especially the tax cuts in the budget reconciliation bill the Republicans call the “One Big Beautiful Bill Act” have “drastically shortened the financial life spans of both Medicare and Social Security, accelerating their paths toward insolvency.”
Between Trump’s statement that if the administration finds enough fraud it can balance the budget overnight, and the subsequent insistence that cuts to Medicaid are necessary because of that fraud, it sure looks like the administration is trying to distract attention from the CBO’s report that Trump’s tax cuts have cut the solvency of Social Security and Medicare by more than a decade. Instead, they are hoping to convince voters that immigrants are at fault.

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