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Misty Severi, Breaking News Reporter


NextImg:Social Security update: What's in newest proposal to slash US budget

A group of Republican lawmakers brought changes to Social Security back to the table as House Republicans seek to curb government spending and balance the federal budget.

The House Republican Study Committee unveiled a new blueprint on Wednesday that proposes changes to Social Security, including raising the full retirement age to 69 instead of 67.

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Starting in 2026, according to the proposal, the full age of retirement would increase by three months per year, excluding those who are already retired or nearing retirement, until the retirement age reaches 69 for those who turn 62 in 2033. But raising the retirement age could mean decreased payouts for those who retire early.

The proposal also suggested that it would shore up the solvency of Social Security but did not go into much detail.

Lawmakers in both chambers of Congress have been trying to figure out how to fund Social Security ahead of its insolvency in 2033, when its trust is fully depleted. Republicans argue that failing to fix the funding for Social Security could lead to a 23% cut in benefits.

“The RSC budget would implement common-sense policies to prevent the impending debt disaster, tame inflation, grow the economy, protect our national security, and defund [President Joe] Biden’s woke priorities,” Rep. Ben Cline (R-VA), chairman of the group’s Budget and Spending Task Force, told Roll Call.

Democrats, however, have pushed back on the new blueprint, opting to fund Social Security through higher payroll taxes and more taxes on the country's elite.

"Budget Committee Democrats will make sure every American family knows that House Republicans want to force Americans to work longer for less, raise families’ costs, weaken our nation, and shrink our economy — all while wasting billions of dollars on more favors to special interests and handouts to the ultra-wealthy," Rep. Brendan Boyle (D-PA) said in a statement last week.

Social Security was a top issue for lawmakers amid their debt ceiling negotiations. But an agreement was reached last month that included cuts to federally funded programs, and Social Security was not one of them.

House Speaker Kevin McCarthy (R-CA) said the debt ceiling deal is only one aspect of the larger and broader Republican agenda but admitted that the primary drivers of the federal budget are government programs such as Social Security and Medicare.

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“This isn’t the end,” McCarthy told Fox News earlier this month. “This doesn’t solve all the problems. We only got to look at 11% of the budget to find these cuts. We have to look at the entire budget. … The majority driver of the budget is mandatory spending. It’s Medicare, Social Security, interest on the debt.”

Although the new proposal could pass the House of Representatives, where Republicans hold the majority, it is not expected to pass the Democratic-controlled Senate or be signed by President Joe Biden.