In the latest development in
Congress' debate over the future of the Social Security disability program (SSD), the White
House has offered a new fiscal plan that would prevent the program from
running out of funds in 2016. In the White House's proposed budget,
$330 billion dollars would be added to the SSD fund starting in 2016,
money that would last until 2033 and result in zero cuts in benefits for
those currently covered.
In the past, the SSD fund was replenished periodically by funds from the
Social Security retirement program, but recently, Republicans in the House
of Representatives have moved to end this practice. Representatives have
alleged that not only is this process detrimental to the retirement program,
but that the SSD program is riddled with fraudulent claims. Under the
Republicans' new restrictions, if the SSD fund was not replenished
in 2016, 11 million Americans' SSD insurance benefits would be cut by 20%.
As reported by Politico late last month, details of the White House's new plan are as follows:
- A temporary adjustment of federal payroll tax distribution
- A 0.9 percent increase in SDD funding from 2016 to 2020 from the tax
- An accumulation of reserves that will last until 2033
However, to many Republicans in Congress, this new plan is just a variation
on the old method of replenishing SSD funds and does not recognize a larger
funding crisis. They also note that the White House's new budget does
not address that Social Security retirement program, which is much larger
than SSD, is predicted to run out of funds by 2034.
The Social Security Disability Debate Continues
As many Republicans are calling for the White House to offer more solutions,
other politicians are optimistic that a bi-partisan agreement is likely
to come for the SSD program in 2016. Either way, both Republicans and
Democrats seem to have mobilized to save SSD during this critical time.
As acting Commissioner of Social Security Administration Carolyn Colvin
has advised Congress, while lasting reform for SSD benefits is needed,
immediate action is required to help millions of Americans who need them now.
If you or a loved one cannot work and is need of Social Security disability
benefits, then we invite you to
contact us at Coats & Todd. One of our dedicated Dallas SSD lawyers is ready
to speak with you today.