When did government start borrowing from Social Security?

The government began "borrowing" from Social Security in the early 1980s, formalized by 1982-1983 legislation, to cover general expenses by investing surplus payroll taxes into Treasury bonds, a practice that continued under subsequent administrations to fund government operations, essentially exchanging cash for IOUs (special-issue Treasury securities). While first allowed as a temporary measure, this practice became a standard way to finance the government as large surpluses were built up from payroll tax hikes to prepare for future baby boomer retirements, with funds used for general spending rather than being held as cash.

What presidents have borrowed from Social Security?

Every U.S. President since 1983 has, in a way, had the government "borrow" from Social Security Trust Funds by using the surplus funds, invested in Treasury securities, to finance general government operations, a practice initiated under President Ronald Reagan with bipartisan reforms, though it's often misunderstood as stealing rather than an accounting mechanism to support the overall budget. Presidents like Reagan, Bush Sr., Clinton, Bush Jr., and Obama all oversaw this process where the government pays interest on these "borrowed" funds, with the principle to be repaid as Social Security needs the money. 

How much money does the government owe Social Security?

The government owes Social Security trillions in "intra-governmental" debt, primarily held as U.S. Treasury securities in the Trust Funds, which act as accounting mechanisms for surplus payroll taxes used for other federal spending. As of late 2024/early 2025, these reserves were around $2.7-$2.8 trillion, but the system is running deficits, with current taxes not fully covering benefits, meaning the government relies on borrowing or current revenue to pay beneficiaries, creating future obligations. 

What did President Johnson do to Social Security?

President Lyndon B. Johnson significantly expanded Social Security in the 1960s, most notably by signing the 1965 Amendments that established Medicare (health insurance for the elderly) and Medicaid, while also increasing benefits, broadening disability criteria, and adding coverage for other groups, though he also shifted Social Security's accounting into the general budget. 

Where did the money go from Social Security?

There are additional Medicare taxes for higher-income workers. In 2026, when you work, about 85 cents of every Social Security tax dollar you pay goes to a trust fund. This fund pays monthly benefits to current retirees and their families and to surviving spouses and children of workers who have died.

When Did The Government Start Borrowing From Social Security? - CountyOffice.org

When did the federal government start taking money from Social Security?

The federal government began collecting Social Security payroll taxes in January 1937, with the first monthly benefits paid in January 1940, following the Social Security Act of 1935; however, the Trust Funds were officially created in 1939, and the government started "borrowing" surplus funds for other expenditures, treating them as on-budget, around 1969 for accounting, though actual inter-fund borrowing occurred earlier and repayment mechanisms were established later. 

How does someone who never worked get Social Security?

Yes, you can get Supplemental Security Income (SSI) without a work history, as it's a needs-based program for the blind, disabled, or aged with limited income and resources, unlike Social Security Disability Insurance (SSDI), which requires work credits; you just need to meet medical, income, and asset tests, not job-related contributions, according to the SSA and USA.gov. 

What did Bill Clinton do to Social Security?

August 15, 1994 President Clinton signed legislation (H.R. 4277) establishing the Social Security Administration as an independent agency.

What president took the most from Social Security?

“Next time a Republican tells you that 'Social Security is broke,' remind them that Pres. Bush 'borrowed' $1.37 trillion of Social Security surplus revenue to pay for his tax cuts for the rich and his war in Iraq and never paid it back”.

What does Suze Orman say about when to take Social Security?

Suze Orman strongly advises waiting as long as possible to claim Social Security, ideally until age 70, to maximize your monthly benefit, explaining that delaying provides a significant guaranteed annual increase (around 8%) and offers crucial inflation protection for a longer retirement. While some suggest claiming at 62 and investing the money, Orman counters that most people don't invest it and end up with less income long-term, emphasizing that a higher monthly check with cost-of-living adjustments (COLAs) is a better, more secure financial tool, especially for the surviving spouse. 

How much Social Security will you get if you make $60,000 a year?

If you consistently earn around $60,000 annually over your career, you can expect a monthly Social Security benefit of roughly $2,100 to $2,300 at your full retirement age (FRA), but the exact amount varies by your birth year and claiming age; for instance, at FRA, it's around $2,311 based on 2025 bend points, while claiming at 62 yields less and claiming at 70 yields more, with an official estimate available on the Social Security Administration (SSA) website. 

What is the biggest driver of the national debt?

For Fiscal Year 2024, the US national budget deficit was $1.9 trillion. The biggest drivers of the national debt are spending on Social Security benefits, major Federal healthcare programs, and net interest on the debt (Figures 1 and 2).

Why does the government borrow from Social Security?

Money that the federal government borrows, whether from investors or from Social Security, is used to finance the ongoing operations of the government in the same way that money deposited in a bank is used to finance spending by consumers and businesses.

How much does the government owe the SS Trust Fund?

As of December 2022 (estimated), the intragovernmental debt was $6.18 trillion of the $31.4 trillion national debt. Of this $6.18 trillion, $2.7 trillion is an obligation to the Social Security Administration.

What did Reagan do to Social Security?

President Reagan signed major bipartisan Social Security reforms in 1983, tackling a funding crisis by gradually raising the retirement age to 67, increasing payroll taxes, and making some benefits taxable for high-income earners, while also restoring minimum benefits and reforming disability reviews, aiming to secure the system's long-term solvency.
 

What is happening on March 31, 2025 with Social Security?

At the conclusion of the transition period, on March 31, 2025, SSA will enforce online digital identity proofing and in-person identity proofing. SSA will permit individuals who do not or cannot use the agency's online “my Social Security” services to start their claim for benefits on the telephone.

What is the average Social Security check at age 65?

The average Social Security check for someone starting benefits at age 65 is around $1,500 to $1,600 per month, though it varies by year and source, with men often receiving more ($1,700+) and women less ($1,400+). Claiming at 65 means getting 86.7% of your Full Retirement Age (FRA) benefit (which is usually 67 for recent births), so the amount is reduced from the overall average for all retirees. 

What did George W. Bush do to Social Security?

Bush outlined a major initiative to reform Social Security which included partial privatization of the system, personal Social Security accounts, and options to permit Americans to divert a portion of their Social Security tax (FICA) into secured investments.

Who raised Social Security from 65 to 67?

The FRA was originally set at 65 when Social Security was established in the 1930s. However, in 1983, Congress passed legislation to gradually raise the FRA to reflect increases in life expectancy and to help ensure the program's long-term financial stability.

Which president made Social Security mandatory?

After a Conference which lasted throughout July, the bill was finally passed and sent to President Roosevelt for his signature. The Social Security Act was signed into law by President Roosevelt on August 14, 1935.

What did Jimmy Carter do to Social Security?

HEW reorganization plan published in Federal Register, creating the Health Care Financing Administration to manage the Medicare program. President Carter signed the Social Security Amendments of 1980. Major provisions involved greater work incentives for disabled Social Security and SSI beneficiaries.

How much will my Social Security go up with the Fairness Act?

The amount monthly benefits may change can vary greatly. Depending on factors such as the type of Social Security benefit received and the amount of the person's pension, some people's benefits will increase very little while others may be eligible for over $1,000 more each month.

Can two wives collect Social Security from one husband?

Yes, two wives (a current wife and an eligible ex-wife) can potentially collect Social Security benefits from one husband's earnings record, provided each meets separate criteria, like marriage duration and age, and they claim survivor or divorced spouse benefits, with each receiving the higher of their own or the spousal/survivor benefit, without reducing the other's amount. 

Who cannot collect Social Security?

People not eligible for Social Security include those who haven't worked enough to earn 40 credits, certain non-citizens, government employees in non-covered jobs (like some state/local/federal workers), retirees living in specific countries (e.g., Cuba, North Korea), and individuals with certain criminal statuses like fleeing prosecution. Ineligibility often stems from not paying into the system or falling under specific exclusion rules, even if some taxes were paid. 

What is the best age to start Social Security?

There's no single "best" age, as it depends on your health, finances, and spouse; however, waiting until age 70 maximizes your monthly benefit (up to ~30% higher than at full retirement age), while claiming at age 62 provides the earliest income but a permanently reduced amount, with your full retirement age (FRA) falling between 66 and 67 depending on your birth year. For most, delaying to age 70 makes financial sense if you expect a long life and want higher lifetime payments, especially for survivor benefits, but claiming early might be better if you have serious health issues or need immediate income.