We must take action to save Medicare and Social Security

Last week, the Trustees of the Medicare and Social Security trust funds confirmed what we already know: both programs are on an unsustainable path. Social Security’s two trust funds will become insolvent by 2033, while Medicare will reach insolvency by 2026.  

By their estimates, Medicare’s insolvency date has been moved back by two years compared to last year’s estimate. In 2026 – compared to 2024 – Medicare would begin spending more money than it takes in, further increasing our already huge yearly deficits and overall massive national debt. After 2033, Social Security would only be able to pay out 80 percent of benefits after that date, which is the same as last year’s estimate.  

While the report does offer a small amount of good news, it is certainly no reason to celebrate. What it does show is that we must reform Medicare and Social Security. If we do not, they will go bankrupt and cease to exist in their current forms. It is that simple.  

Our budget in the House would ensure that these programs remain in place for current seniors and those who are about to retire. Importantly, our budget also ensures Medicare and Social Security are around for current and future generations of Americans. We simply must honor the commitments we have made to retirees.  

Moving from retirees to college students, President Obama’s most recent budget called for “a long-term solution that is deficit-neutral and offers affordable, market-based [interest] rates, particularly for those students and families who struggle most with the cost of college.”  

Currently, if no legislative action is taken, next month student loan rates will double from 3.4 percent to 6.8 percent. Recognizing that reality, the House of Representatives recently passed legislation to avoid such a steep rate increase for recent and future college graduates.  

Our bill sets the rate at the 10-year Treasury rate plus 2.5 percent, while also protecting borrowers by capping the rates at 8.5 percent. In other words, no matter how high interest rates may go, 8.5 percent is the highest student loan rates would ever go. The bill we passed in the House provides a market-based variable interest rate, allowing rates to fall if that is what is occurring in the general economy and mirroring what the president proposed in his own budget.  

The differences between the House plan and the president’s are small, and there’s no reason they cannot be overcome quickly. Unfortunately, rather than working to resolve those issues the president resorted to a campaign style press conference at the White House to try to score political points.  

If the president is truly unhappy with inaction, the only place to look is the Democratic-run Senate, which has taken no action to prevent rates from doubling. The House worked hard to pass legislation we believed the president could support. If he does not, he should explain why and then negotiate in good faith to resolve those differences. We need to get this done for students, without politics being a part of the equation.  

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If you have questions or comments regarding my work in Congress, please do not hesitate to contact my Wadsworth office at (330) 334-0040 or my Washington office at (202) 225-3876.