The Biden administration’s policies have been scrutinized for their potential impact on Social Security, particularly through the effects of inflation. While the administration has not directly cut Social Security funding, inflation can erode the purchasing power of Social Security benefits, effectively reducing their value over time.
### Understanding Inflation’s Impact
Inflation is a rise in the general price level of goods and services in an economy over time. It means that the same amount of money can buy fewer goods and services than it could before. For Social Security recipients, who often rely heavily on these benefits, inflation can be particularly challenging. Even with annual cost-of-living adjustments (COLAs), which are intended to keep benefits in line with inflation, the actual purchasing power of these benefits can still decline if inflation outpaces the COLA.
### Recent COLA Adjustments
In 2025, Social Security beneficiaries received a COLA of 2.5%, which is lower than the previous year’s adjustment of 3.2% and significantly lower than the 8.7% increase in 2022[1][3]. This decrease in COLA reflects a cooling of inflation rates, but it still leaves many retirees struggling to keep up with rising costs. For instance, a report by the AARP noted that only a small percentage of Americans believe a COLA of less than 3% is sufficient to cover increasing expenses[1].
### The Social Security Fairness Act
One positive development for some Social Security recipients is the Social Security Fairness Act, signed into law by President Biden. This act eliminates the Windfall Elimination Provision and the Government Pension Offset, which previously reduced benefits for certain public employees. While this change will increase benefits for about 3.2 million people, it also adds to the federal deficit and could hasten the depletion of Social Security’s trust fund[3][5].
### Concerns About Social Security’s Future
Social Security’s trust fund is projected to be depleted by 2033, at which point it will only be able to pay out about 79% of scheduled benefits[3]. This looming insolvency highlights the need for comprehensive reforms to ensure the long-term sustainability of the program. However, any discussion of reform is often contentious, with debates over how to balance the program’s finances without reducing benefits or increasing taxes.
### Conclusion
While the Biden administration has not directly defunded Social Security, the impact of inflation and the challenges facing the program’s long-term solvency are significant concerns. As policymakers consider the future of Social Security, they must balance the need to protect current beneficiaries with the imperative to ensure the program’s viability for future generations.
