Trump’s 2026 Social Security Vision: During his presidential campaign last year, Donald Trump avoided discussing Social Security. Additionally, Trump has not prioritized Social Security since assuming office for a second term in January 2025.
The president has mostly concentrated on immigration, imposing tariffs, prolonging the tax cuts that were implemented during his first term, and getting rid of what he considers to be “woke” governmental rules. But that doesn’t imply he hasn’t thought about Social Security at all. Trump sought to alter Social Security in two significant ways while running for president. Will they come to pass in 2026?
Removing federal taxes from Social Security income
Trump promised during the 2024 presidential campaign that “Seniors should not pay taxes on Social Security, and they won’t.” Approximately 40% of Social Security claimants currently pay federal income taxes on their benefits, including those who receive disability or retirement payments.
However, it hasn’t always been the case. Federal taxes did not apply to Social Security income until 1984. But in 1983, a bipartisan initiative to strengthen the federal program was passed by Congress. Former President Ronald Reagan signed this plan into law, raising the entire retirement age to 67 gradually and taxing up to 50% of Social Security income.
Although politically popular, policy experts rejected Trump’s proposal to remove federal taxes on Social Security payouts. According to the Committee for a Responsible Federal Budget, the action would, among other things, shorten the time until Social Security’s retirement trust fund runs out of funds by more than a year. The Tax Foundation’s Garrett Watson described Trump’s proposal as “neither fiscally responsible nor sound tax policy.”
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Boost the safety of Social Security’s finances with oil and gas income
The fundamental premise of those critiques of Trump’s plan to remove federal taxes on retirees’ Social Security income was that no additional steps would be taken to strengthen the program’s financial stability. But during his presidential campaign for a second term, Trump proposed a plan that he said would stabilize Social Security’s finances.
In December 2023, during a town hall led by Sean Hannity of Fox News, Trump declared, “You don’t have to touch Social Security.” He continued, “We have such incredible wealth under our feet, that that takes care of everything.”
Trump was alluding to the United States’ oil and gas reserves. He cited Saudi Arabia as an example of a nation whose oil and gas earnings allow it to finance government expenditures without borrowing. Hannity was informed by Trump that “we have more oil and gas than they do.”
Will these two Social Security adjustments take effect in 2026?
In 2026, many retirees who have already paid federal taxes on their Social Security income will not be required to do so. But it won’t be because those taxes have been removed.
The Social Security Administration (SSA) declared after the “One Big, Beautiful Bill” was passed in July 2025: “The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits.” That isn’t totally accurate.
An increased tax deduction for Americans 65 and over is one of the legislation’s provisions. Social Security benefits are not the exclusive source of this tax reduction. However, starting next year, those retirees who previously paid federal taxes on their Social Security income will no longer be required to do so because of this “senior bonus.”
However, rather than having their federal taxes completely removed, the Tax Policy Center (TPC) predicts that the majority of seniors will see a decrease in the federal taxes due on Social Security income. According to TPC’s calculations, around half of Social Security recipients will still owe some federal taxes on their benefits. The “senior bonus” will also run out in 2028.
What about bolstering Social Security with oil and gas revenue? Thus far, no such proposals have been made by the Trump administration. Therefore, it is unlikely that Social Security’s dire budget projections will change by 2026.
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