Social Security

Newsweek  - A major Social Security trust fund is set to be depleted faster than expected, a report released Tuesday showed, raising new concerns that states with larger aging populations will be hit harder. The report highlighted the rapid depletion of the Old-Age and Survivors Insurance (OASI) trust fund, which helps fund retirement benefits and could run dry within the next decade unless Congress steps in.

The worsening outlook for the fund comes after the Trump administration introduced new tax rules in 2025, which reduced the amount seniors pay on their Social Security income, cutting revenue.

According to the report, effects of the OASI's depletion would be felt nationwide, but analysts say the pain would be concentrated in older, lower-income, and rural states.

"Washington is sleepwalking into a retirement crisis, allowing our nation’s most important trust funds to go insolvent at the expense of over 70 million beneficiaries who count on these programs," Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement shared with Newsweek.

"In just six years – during the next Senate class’s term – Social Security’s retirement fund will run out of money. Medicare will run out just half a year later. Today’s youngest retirees will be turning 68 when Social Security runs dry and 69 when Medicare does. Yet our leaders have no plan to prevent the abrupt 22% benefit cut or 11% payment cut that would ensue."