Dems, Republicans Spar on Social Security at Hearing; O’Malley is Star Witness

Dems, Republicans Spar on Social Security at Senate Hearing

Senate Budget Committee chairman Sheldon Whitehouse (D-RI) and his colleagues welcomed two panels of witnesses to a hearing on Capitol Hill on Tuesday to discuss the future of Social Security. The star witness was Social Security Administration (SSA) Commissioner Martin O'Malley, who took command of the agency in late 2023 pledging to improve customer service.

Democrats on the committee criticized the House Republican Study Committee 2025 spending plan that would gut Social Security if implemented, cutting benefits for 3 out of 4 Americans. Democrats reiterated their commitment not only to maintaining the solvency of the program's trust fund (which is projected to become depleted in 2035 without Congressional action), but expanding benefits. Senator Whitehouse expressed frustration with Republicans for failing to support Democratic bills to strengthen the program, while offering no legislation of their own.

"Here's what I think the plan is for Republicans: Run out the clock until insolvency. Then, when there is a crisis, try to get Democrats into a back room, where Republicans can secretly negotiate benefit cuts, and then bring them out to the public under cover of bipartisanship. That won't work." - Senator Sheldon Whitehouse (D-RI)

If that isn't the plan, Senator Whitehouse challenged Republicans to introduce legislation to improve Social Security - which they haven't done since 2016. (That bill would have cut benefits by more than 30%). Democrats say that their goal is clear: maintain the financial health of Social Security without cutting benefits - mainly by demanding that high earners begin paying their fair share in payroll contributions. (This is why we a have endorsed Democrats up and down the ballot, including Kamala Harris.)

"The ultra wealthy are avoiding nearly $2 Trillion in taxes every 10 years. That is enough to keep Social Security whole until the end of this Century." - Senator Ron Wyden (D-OR)

The nation's nearly 70 million Social Security beneficiaries not only deserve an expanded and strengthened program - they rightly expect proper customer service from the Social Security Administration. Commissioner O'Malley touted the agency's achievements since he took office, including cutting wait times on the 1-800 phone line and making the process of recovering benefit overpayments less painful for seniors, despite underfunding by the U.S. Congress, resulting in a 50-year low in SSA staffing

Despite serving more customers than ever, O'Malley pointed out that SSA has been chronically underfunded by Congress, resulting in a 50-year low in staffing:

"We have now reduced wait times on the 1-800 number by 50%… We have now cleared more cases every week for 12 weeks in a row and have reduced the (appeals backlog for disability claims) to a 30-year low. (But) these recent gains will be short-lived without your immediate attention and support." - Social Security Administration Commissioner Martin O'Malley, 9/11/24

NCPSSM's senior Social Security expert, Maria Freese, praised O'Malley's advocacy for better SSA funding::

With 10,000 Americans turning 65 each day, it's critical that SSA receive adequate funds each year during the appropriations process. Commissioner O'Malley did a masterful job of explaining the negative consequences that would result if the agency continues to be underfunded. " - Maria Freese, NCPSSM Senior Policy Advisor

Even so, the commissioner pointed out that a majority of Americans hold favorable views of SSA, especially compared to other parts of the federal government.

O'Malley engaged in a spirited back and forth with Sen. Ron Johnson (R-WI), who did not conceal his disdain for the program, calling Social Security a "paternalistic" Johnson with "forced" participation. In 2022, Johnson proposed that Social Security be downgraded from a 'mandatory' to a 'voluntary' spending program. At this week's hearing, he advocated raising the retirement age. Like other proponents of this idea, Johnson uses the canard that Americans are "living longer" and shouldn't be able to collect benefits until age 69 or 70.

Commissioner O'Malley reminded the Senator that many socioeconomically challenged groups face lower life expectancies - and that people in physically demanding jobs may not be able to continue working until their late 60s. (Raising the retirement age would be a huge lifetime benefit cut.)

The second panel of witnesses featured Rebecca Vallas, who recently became CEO of the National Academy of Social Insurance. She stressed importance of Social Security benefits to millions of Americans while expressing optimism in legislators' ability to address looming solvency issues:

"Social Security isn't just a government program, and it isn't just a math problem that needs to be solved. It's a reflection of our shared values as Americans and a commitment that we make to each other. The reason there's so much bipartisan support and love for this program is that we feel this not just financially, but spiritually" - Ms. Rebecca D. Vallas, CEO of the National Academy of Social Insurance

Several Democrats in the House and Senate have introduced legislation that would strengthen and expand Social Security, but few have come up for a vote because Republicans have controlled one or both chambers for the better part of the past few Congresses.

Earlier this week, Sen. Brian Schatz (D-HI) introduced a bill endorsed by NCPSSM President and CEO Max Richtman says the legislation will "enhance Social Security for current beneficiaries and future generations." Democratic Senators Whitehouse and Sanders along with Rep. John Larson and (several others in the House) have introduced their own legislation to improve Social Security without cutting benefits. Many of these bills expand benefits across the board. Democrats have called on GOP lawmakers to support these commonsense measures, but, as this week's hearing demonstrates, there is little consensus between the two parties as of now - and perhaps little in sight.

Blog Alerts

Categories

Social Security

Medicare

Equal Time

Affordable Care Act

Healthcare

Recent Posts

Archives