The Social Security Administration says its $2,521 million benefit check has been sufficient to cover its obligations to beneficiaries and avoid insolvency.
Social Security Secretary Kathleen Sebelius said Wednesday that the agency expects to report a $2 billion shortfall in benefits next month as the result of the government shutdown.
“The government shutdown and other economic pressures are weighing on Social Security’s finances,” Sebelias said.
“The agency’s cash reserves are already tight, and as a result, the agency has been unable to pay out benefits and to pay payroll tax contributions that were due during the shutdown.”
Sebelius’ announcement comes on the heels of a report from the U.S. Congressional Budget Office that said the government will have $2 trillion in revenue this year, or $1.2 trillion less than anticipated.
The government’s debt is also expected to balloon to more than $20 trillion in 2021, from about $14 trillion now.
Sebriscia also said the Social Security Trust Fund would be the nation’s largest at $20.9 trillion by the end of 2021, a number that will rise as the number of beneficiaries increases.
The SSA, which is part of the Social Services Department, receives $7 billion in payroll tax payments every year.
Since it was created in 1935, Social Security has been the largest federal program in terms of the number and size of beneficiaries, Sebriscias office said. More News: