As Social Security celebrates its 90th anniversary this week, a new Economic Policy Institute FAQ provides essential facts and addresses common misconceptions about this universal social insurance program.
Social Security benefits keep more people out of poverty than any other government program, including nearly a million low-income children who receive benefits directly or share in family benefits. However, the program is increasingly under threat as the Trump administration announced plans to shutter offices and cut Social Security staff by 7,000 workers—12% of the workforce. Just last week, Treasury Secretary Scott Bessent admitted that “Trump accounts,” the new tax-incentivized private investment account plan recently created by Congress in the Republican budget bill, are a “backdoor for privatizing Social Security.”
After explaining how Social Security is financed and how benefits are calculated, the FAQ describes how the Trump administration’s cuts have affected access to benefits. In February and March 2025—after the Trump administration began laying off Social Security staff and closing offices—Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) applications were down 20% in February and March 2025 compared with the same period in 2024.
Weakening Social Security would disproportionately harm people of color, according to the FAQ. Black and Hispanic seniors are more reliant on Social Security than white seniors because they are less likely to have other sources of income.
The FAQ also takes a deep dive into the shortfall facing Social Security. The Social Security trust fund is projected to become depleted in 2034, which would result in a 19% cut to benefits. But Congress can act to close the projected shortfall by increasing revenues, which surveys have consistently shown is preferred by Americans across the political spectrum. The most popular policy option is lifting the cap on taxable earnings so that very high earners contribute to Social Security at the same rate as everyone else.