Has Congress Stolen Funds From Social Security? The Stunning Reveal… – The Motley Fool

Has Congress Stolen Funds From Social Security? The Stunning Reveal…
By Sean Williams – Apr 26, 2025 at 3:44AM

Key Points

America’s leading social program is staring down a $23.2 trillion long-term cash shortfall, as well as the possibility of benefit cuts for retired workers and survivor beneficiaries by 2033.
One of the most-popular online opinions suggests Congress stole money from Social Security.

While lawmakers do foot some of the blame — none of which has to do with congressional theft — the bulk of Social Security’s problems boil down to ongoing demographic shifts.
In February, more than 52 million retired-worker beneficiaries collected an average Social Security check of $1,980.86. This might not sound like much, but Social Security income has proved to be indispensable for a majority of retire

In each of the last 23 years, national pollster Gallup has conducted a survey to gauge how reliant retirees are on the income they receive from America’s leading social program. What these surveys have shown is that 80% to 90% of retired workers need their monthly check, in some capacity, to cover their expenses.

However, playing a key role in laying a financial foundation for America’s aging workforce doesn’t mean Social Security’s own foundation is on solid footing. For the last four decades, the program’s long-term financial outlook has been worsening. Though there are numerous factors worth blaming, what’s arguably the most commonly pointed to scapegoat is Congress.

Social Security benefit cuts may be necessary by 2033

For 85 years, the Social Security Board of Trustees has published an annual report that details the financial health of the program. Anyone can review these reports, which categorize how every dollar in income is collected, as well as where those dollars are spent/end up.

But what tends to garner more attention with the annual Trustees Reports is their forward-looking estimates. The Trustees take into account a number of dynamic variables, such as fiscal and monetary policy, along with a laundry list of demographic factors, to predict how financially sound Social Security will be over the long term (defined as the 75 years following the release of a report).

Since 1985, every Social Security Trustees Report has warned of a long-term funding obligation shortfall. In simpler terms, projected income to be collected over the next 75 years won’t be enough to cover outlays, which includes benefits, inclusive of cost-of-living adjustments (COLAs), and to a far lesser extent administrative expenses to oversee the program. This long-term funding deficit reached an estimated $23.2 trillion in 2024.

To make matters worse, the Trustees are forecasting an exhaustion of the asset reserves for the Old-Age and Survivors Insurance Trust Fund (OASI) by 2033. The OASI is the fund that pays monthly benefits to retired workers and survivor beneficiaries.a

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