For at least the past year, we have been hearing a lot from the media and politicians running for presidential nominations about how the Social Security Disability Insurance (SSDI) benefits program and the Supplemental Security Income programs would run out of money in late 2016, resulting in a reduction of benefits by 19 percent across the board. This across the board 19 percent budget cut would mean for the nearly 10 million Americans currently collecting disability benefits, their respective checks would be cut by 19 percent, leaving many of them below the federal poverty line with no way to take care of themselves and their families. The United States Social Security Administration (SSA) runs both disability programs, as well as the Old Age and Retirement Program of which most people are familiar.
While this budget crisis was getting closer, many politicians, mostly Democrats, were advocating for a reallocation of resources from the Social Security retirement program to the disability benefits programs. Even though Social Security Administration runs both the disability and retirement programs, the money comes from different funds, because they are not designated for the same purpose in terms of who the beneficiaries are. This would be relatively easy to do, since the retirement program is funded through the year 2034, according to most estimates, and it would only take enough money to reduce that number by one year to fully fund the disability program for at least the next 15 years. Continue reading