On April 26, 2023, House Republicans held their first hearing of the House Ways and Means Social Security Subcommittee. The hearing, titled “Social Security Fundamentals: A Fact-Based Foundation,” was chaired by Rep. Drew Ferguson (R-GA) and included three witnesses: Dr. Phillip Swagel (Director of Congressional Budget Office), Stephen Goss (Chief Actuary of the Social Security Administration), and Barry Huston (analyst with the Congressional Research Service).

NOSSCR’s government affairs staff was present at the hearing, which primarily focused on the health of Social Security’s trust fund. Democrats pressed their Republican colleagues on proposals by some within the GOP that would amend the program to, among other things, increase the retirement age or implement a more conservative Cost of Living Adjustment (COLA) formula.

At one point, Rep. Bill Pascrell (D-NJ) criticized Sen. Ron Johnson (R-WI) for referring to Social Security as a “Ponzi scheme.” In response, Chairman Ferguson said, “the Senator from Wisconsin will not be taking a vote on this subcommittee.” Further, Chairman Ferguson attempted to reassure his Democratic colleagues by saying, “I would like to put your minds at ease: you won’t have to worry about voting on the Republican Study Committee plan on this subcommittee.”

In his comments, Goss explained that, without Congressional action, “combined reserves for the Old-Age and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds are projected to become depleted in 2034” (Dr. Swagel stated that the Congressional Budget Office projected the combined reserves would be depleted by 2033). Goss went on to say that, in order to avoid this outcome, Congress would have to take steps to raise future scheduled revenue by about one-third, reduce scheduled benefits by one-fourth, or agree on a combination of those two changes.

Among the options identified in the hearing to raise revenue for the program were increasing the payroll wage cap and increasing immigration. Both Goss and Swagel confirmed that increasing the level of legal immigration would have a positive impact on the health of the Social Security program. According to Swagel, “increased immigration would increase the size of the economy, increase the size of payrolls, and improve the financial status of Social Security.” Goss added, “it [immigration] would unequivocally improve the financial status of Social Security.”

The next hearing of the House Ways and Means Social Security Subcommittee is scheduled for May 24, 2023.