Social Security Bill divides Trump's Republican Party into factions

Republican senators on Tuesday clashed behind closed doors over a proposal to increase Social Security benefits for individuals eligible for non-Social Security government pensions.

According to The Hill report, the legislation, which has already passed the House, is expected to be brought to the Senate floor on Wednesday. However, some Republicans concerned about its cost are pushing to block it.

One GOP senator who participated in Tuesday’s meeting described the discussion as “intense.”

“I think most of our members were alarmed that something so big” would come straight to the Senate floor, The Hill quoted the senator as saying, noting that the legislation had not been marked up by the Senate Finance Committee.

A group of Senate conservatives, led by Sen. Rand Paul (R-Ky.), is calling for Social Security reforms, including gradually raising the retirement age, to offset the cost of repealing two policies that reduce benefits for public-sector workers.

Paul argues that the bill, which has 14 Republican co-sponsors, would accelerate Social Security’s insolvency.

“It speeds the bankruptcy of Social Security. Social Security is due to go bankrupt in 2034. This will speed it up by a year or so. It’s $200 billion added to a program that is already short of money,” The Hill quoted Paul as saying.

He wants senators to vote on an amendment to offset the bill’s impact on the Social Security trust fund by gradually raising the retirement age to 70.

“If you’re going to add to its mandate by expanding it, you should pay for it,” he was quoted as saying.

“One of the proposals that’s been out there for a long time is to gradually raise the age of eligibility.

“I’ll propose that as an amendment. … If we raise the age [of retirement] gradually, about three months a year for the next 12 years, the age will go to 70 and then be linked to longevity. That would pay for this expansion,” The Hill quoted Paul as saying.

“I won’t vote to support expanding [Social Security benefits] without paying for it,” he said.

“There are several other people opposed to this bill, too. So it may be that the others simply just want to delay it as long as possible in hopes that they will not be able to complete it this week,” he said.

The bipartisan Social Security Fairness Act passed the House earlier this month with a vote of 327 to 75.

Paul is pushing for a vote on an amendment to raise the Social Security retirement age, placing Republican senators in a difficult position, as many are reluctant to address the issue.

President-elect Trump recently told NBC’s Meet the Press that he would not support raising the retirement age, saying, “The people are going to get what they’re getting,” and emphasised that his focus is on making Social Security more efficient.

Paul holds leverage, as he can delay the floor debate on the bill for days unless he gets a vote on his amendment. This could postpone Senate consideration of a stopgap funding bill, which must pass by Friday to avoid a government shutdown.

Senate Republican Whip John Thune (S.D.) said the issue was the focus of intense debate at the weekly Tuesday policy lunch.

“There was a lot of conversation around [it] today,” The Hill quoted Thune as saying, referring to proposals to raise the retirement age or explore other options to protect Social Security’s finances.

He described the conversation as “fulsome” but added that the GOP is divided on the matter, with members expected to vote according to their own views.

Thune stressed the importance of addressing Social Security’s long-term solvency but did not take a position on the amendment. “It’s going to come down to individual members making their own decisions,” Thune was quoted as saying.

The legislation, introduced by Sens. Bill Cassidy (R-La.) and Susan Collins (R-Maine), aims to repeal the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

WEP, enacted in 1983, reduces Social Security benefits for workers with pensions from government jobs not covered by Social Security. GPO, enacted in 1977, reduces Social Security spousal benefits for individuals whose spouses receive government pensions.

Sen. Mike Lee (R-Utah) voiced concerns over the potential $200 billion hit to the Social Security trust fund from a bill he argues offers only short-term political benefits.

“It’s got to be offset one way or another. We have never in history, to my knowledge, unleashed such a massive bomb that would blow such a massive hole in the Social Security trust fund — $200 billion,” The Hill quoted Lee as saying.

He acknowledged the need for reform but cautioned against leaving the fund vulnerable without a clear plan to fix it.

The Congressional Budget Office projected the bill would add $196 billion to the deficit over the next decade.

Sen. Ron Johnson (R-Wis.) also opposed the bill, calling it too broad and irresponsibly funded.

“Hopefully it gets defeated,” he said.

“It provides benefits to those not impacted by the 1970s fix,” he said, referring to the Government Pension Act. He also noted that Sen. Mike Crapo (R-Idaho), the senior Republican on the Senate Finance Committee, criticized the bill for bypassing his committee.

Republican co-sponsors of the bill include Sens. Mike Braun (Ind.), Deb Fischer (Neb.), Pete Ricketts (Neb.), Marsha Blackburn (Tenn.), Lisa Murkowski (Alaska), Markwayne Mullin (Okla.), John Boozman (Ark.), Rick Scott (Fla.), Jerry Moran (Kan.), John Kennedy (La.), and Vice President-elect JD Vance (Ohio).

With inputs from agencies