Aaron Flint: A Balanced Budget Amendment Could Subject Social Security, Medicare, And Veterans’ Benefits To A Potential 20% Cut, Putting Benefits At Risk For More Than 111,000 People In Montana’s 1st Congressional District
A Balanced Budget Amendment Would Threaten Americans’ Social Security, Medicare, And Veterans’ Benefits, Subjecting The Programs To A Potential 20% Cut
Center for American Progress Headline: “The Balanced-Budget Amendment Threatens Americans’ Health Care, Social Security, And Jobs.” [Center for American Progress, 4/11/18]
AARP Opposed A Balanced Budget Amendment Because It Would “Likely Harm Social Security And Medicare, Subjecting Both Programs To Potentially Deep Cuts.” “AARP is writing to express our opposition to a balanced budget amendment to the Constitution of the United States. […] A balanced budget amendment would likely harm Social Security and Medicare, subjecting both programs to potentially deep cuts without regard to the impact on the health and financial security of individuals. It would also likely diminish the resources available for programs assisting Americans who are least able to provide for themselves – services such as meals or heating for those who are too poor or physically unable to take care of their basic needs without some support.” [AARP, Letter, 4/9/18]
Under A Balanced Budget Amendment, Medicare Part A Would Not Be Able To Pay For Hospitalization Costs, Because It Is Funded Through A Fund Of Saved Treasury Securities. “Medicare Part A — the Hospital Insurance trust fund — has the same structure as Social Security. That trust fund currently holds about $200 billion in Treasury securities, but under a balanced budget amendment, it would be unconstitutional for Medicare to draw down those savings to pay hospitalization costs because all federal expenditures — which includes Medicare payments — would have to be covered by taxes collected in the same year.” [Center on Budget and Policy Priorities, 3/16/18]
Center On Budget And Policy Priorities: Under A Balanced Budget Amendment, The Military And Federal Employee Civil Service Retirement Systems Would Not Be Able To Pay Retirees, Because They Were Funded Through Funds Of Saved Treasury Securities. “As a result, the $700 billion in Treasury securities held by the military retirement trust fund and the $900 billion in Treasury securities held by the civil service retirement trust fund would be unavailable to pay promised retirement pensions.” [Center on Budget and Policy Priorities, 3/16/18]
Center On Budget And Policy Priorities: Under A Balanced Budget Amendment, “Programs Such As Social Security, Medicare, National Defense, And Veterans’ Benefits Could Be Cut By An Average Of One-Fifth.” “Programs such as Social Security, Medicare, national defense, and veterans’ benefits could be cut by an average of one-fifth under a constitutional amendment before the House this week to require a balanced budget in every year. If policymakers chose to protect some programs from cuts, the cuts in other programs would be even deeper. If they protected Social Security and Medicare, for example, all other programs would be cut by two-fifths.” [Center on Budget and Policy Priorities, 4/11/18]
Center On Budget And Policy Priorities: A Balanced Budget Amendment Would Lead To $200 Billion In Cuts To Medicare In 2025 If Cuts Were Evenly Distributed Among Programs. [Center On Budget And Policy Priorities, 4/11/18]
Center On Budget And Policy Priorities: A Balanced Budget Amendment Would Lead To $325 Billion In Cuts To Social Security In 2025 If Cuts Were Evenly Distributed Among Programs. [Center On Budget And Policy Priorities, 4/11/18]
A Balanced Budget Amendment Could Threaten Social Security Benefits For More Than 111,000 People In Montana’s 1st Congressional District
December 2024: 111,824 People In Montana’s 1st Congressional District Received Social Security Benefits. [Social Security Administration, Congressional Statistics, December 2024]