An analysis has revealed that the $169 billion deficit in Social Security, a byproduct of his own tax laws, is at odds with President Donald Trump’s promise to see the program protected.
As The Washington Post reports, the chief actuary for the program has put a figure on the damage: some $169 billion in lost funding over a decade from the tax cuts contained in the One Big Beautiful Bill Act. The estimate is all the more pointed given that the retirement trust fund is on course to be drained of its reserves by 2032.
Trustees say once that happens, incoming taxes will only be able to meet 78 percent of what is owed in retirement and survivor benefits. Without some action from Congress, an across-the-board cut of 22 percent would be the likely result.
Trump claimed that he will not make cuts to Social Security. “Under no circumstances should Republicans vote to cut a single penny from Medicare or Social Security,” he said in a video message in 2023.
Yet the 2025 tax bill tells a different story. While campaign ads have touted “no tax on Social Security,” the legislation does not do away with the taxation of benefits. It does, however, offer provisions like a temporary $6,000 extra deduction for those 65 and up, lowering the federal tax burden for many of the country’s older citizens.
Since the trust funds are supported in part by income taxes on some of these benefits, any reduction in liability means less revenue for the system. The $169 billion in question is lost program revenue, not a direct hit to the monthly check a retiree receives.
In their 2026 report, the trustees point to the new tax law as well as declining birth and immigration rates as reasons for a gloomier outlook, moving the date of the trust fund’s depletion from early 2033 to the end of 2032.
A review of political advertising in 63 competitive districts by the Post found Republicans outspending Democrats on Social Security ads by a factor of seven.
In Pennsylvania, for instance, Rep. Scott Perry has made much of the senior tax deduction the main message in his bid against Democrat Janelle Stelson, while also distancing himself from an old plan to tweak benefits and the retirement age. Stelson has made defending retirees her pitch, but the Post notes neither has put forth a concrete way to deal with the shortfall.
It is a sizable gap, and covering it in 2033 alone would take close to $500 billion. For Republicans, it is a contradiction: the president vows to put a shield around retirement checks even as his tax policy is set to siphon money from the system.
