Biden Moves to Shield Medicare and Social Security From Budget Showdown
President Joe Biden used his State of the Union address Tuesday to shape Medicare and Social Security budget negotiations.
Biden suggested, in a speech delivered in Washington and streamed online, that some Republicans want to make the Medicare and Social Security laws “sunset,” or expire, every five years.
When Republicans objected loudly in response, Biden said, “So, we all apparently agree, Social Security and Medicare are off the books. They’re not to be touched.”
Most Democrats in the audience and many Republicans stood or applauded to indicate their support for the idea that Medicare and Social Security benefits should not be touched.
What It Means
Medicare and Social Security could be safe from major benefits changes during negotiations over the federal budget for fiscal year 2024.
If negotiators do end up wrestling over the programs, any uncertainty about the benefits could increase retirement planning clients’ projected retirement income needs.
For clients, finding good alternatives to Social Security, other than an increase in ordinary retirement savings, might be difficult.
The Budget
The federal fiscal year 2024 starts Oct. 1. Biden administration officials have said in a memo that the White House plans to release its budget proposal for 2024 on March 9.
In 2022, the United States posted a $1.4 trillion loss on $4.6 trillion in revenue, according to the 2022 budget.
