Here’s what upcoming budget negotiations may mean for Social Security

As lawmakers in Washington, D.C., work to rein in government spending, some advocates and consumers are concerned that Social Security could see cuts.

Congress faces a March 14 deadline to extend funding for the federal government in order to avoid a government shutdown. Meanwhile, the Trump administration had hoped to slash $2 trillion in government spending.

Because Social Security accounts for 21% of the budget, or $1.5 trillion in spending in 2024, there are concerns that the program could be a target.

Here’s what experts are keeping a watchful eye on with regard to Social Security in the upcoming negotiations.

Last year, the Republican Study Committee, a large group of House Republicans, released a budget proposal to cut federal spending by $17.1 trillion over 10 years.

That included a proposal to raise the Social Security retirement age to 69. Currently, retirees are eligible for the full benefits they’ve earned at age 66 to 67, depending on their date of birth.

With that change, anyone born after 1971 would see their benefit cuts an average of 13%, according to the Congressional Budget Office.

Importantly, no changes can be made to Social Security benefits in upcoming budget reconciliation legislation, due to the Byrd Rule. That law prevents the addition of extraneous provisions, according to Maria Freese, senior legislative representative at the National Committee to Preserve Social Security and Medicare.

But a proposal to raise the retirement age came up during last-minute Senate negotiations over the Social Security Fairness Act in December, and could come up again, experts say.

“Any opportunity that they [Congress] have, I could see it coming up,” Freese said. “They just can’t put it in reconciliation.”

For his part, President Donald Trump said he is opposed to cutting Social Security, except for any waste, fraud or abuse of the program.

Efforts to renew federal spending will likely address the amount of funding the Social Security Administration has available to provide services including toll-free phone call center services and disability determinations.

Budget limitations put in place over the past decade have already put a strain on the agency’s customer service, the Center on Budget and Policy Priorities notes in recent research. Social Security Administration staff dropped by 11% between 2010 and 2024, while the number of beneficiaries increased by 24% over that time, according to the research.

“Cuts that worsen the underfunding of SSA would further compromise its ability to provide the customer service that beneficiaries deserve,” the research states.

Without additional funding, it may take the agency more time to implement the Social Security Fairness Act, a new law that provides benefit increases to more than 3 million beneficiaries, experts have said.

“Congress has consistently and repeatedly underfunded that agency,” Freese said.

That has left the agency more susceptible to criticism, particularly with recent scrutiny of beneficiaries over age 100, she said.

“Part of what is among the first things to go are upgrades to computer systems and things that are considered non essential,” Freese added.