What Will Happen If SSDI Funding Runs Out?

If you have been following our blog recently, you should be aware that there is ongoing debate in Washington about how to handle Social Security Disability Insurance (SSDI) funding, as there are issues that could present a problem next year. Photo of courthouse

Some financial experts have estimated that the SSDI program could run out of funds in late 2016, potentially resulting in a 20 percent payment cut to beneficiaries. With this in mind, last week, during a Senate Budget Committee meeting, acting Social Security Administration commissioner Carolyn Colvin painted a bleak picture if lawmakers fail to act.

“I don’t want to be dramatic, but I’ve worked with this population my whole career. I think we [would] give them a death sentence,” Colvin said about potential cuts. Remember, SSDI recipients only receive about $1,200 per month, so a 20 percent cut or $240, could be terribly detrimental, leaving people with very little funds to pay for items like rent, utilities and food.

“You’re barely surviving,” Colvin said, according to the Hill. “If you get a cut there, you’re not going to be able to survive.”

Amazingly, Republicans have opposed funding disability by reallocating revenue from the Social Security retirement fund to the disability fund, something that the Hill noted was done 11 times previously on a bipartisan basis.

We will continue to keep you posted on any news coming out of Washington concerning SSDI funding. Remember, as we reported last week, President Barack Obama’s proposed 2016 fiscal budget calls for a reallocation of funds as a temporary solution to the ongoing budget problem. However, his plan will need approval, which may not come in the form of Congress.

Obtaining SSDI Benefits

Our attorneys are committed to providing the disabled with legal services when it comes to collecting SSDI benefits. For more information about the SSDI application and appeals process, you can visit our Social Security FAQ page.

Hopefully, our elected officials will come up with a solution to prevent the funding crisis Colvin mentioned from occurring. We suggest continuing to follow our blog for more information about the financial debate.

On Wednesday, we will discuss SSDI enrollment numbers from 2014, which may surprise you, considering what has been going on in Washington.

Troutman & Troutman, P.C. – Tulsa Social Security disability attorneys

Source: http://thehill.com/policy/finance/232466-social-security-chief-congressional-inaction-on-disability-fund-a-death



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