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"Nothing in Mr. Bisignano's career suggests that he understands the unique needs of older and disabled Americans," said the Alliance for Retired Americans' leader.
Critics of U.S. President-elect Donald Trump's pick to run the Social Security Administration, Frank Bisignano, warned this week that the Wall Street veteran may not be the best choice to run an agency that provides one of America's most important social safety nets.
"President-elect Trump has nominated financial software CEO and GOP donor Frank Bisignano to head the agency that administers Social Security benefits for some 70 million Americans. If confirmed, Bisignano will be accountable—not to corporate boards or stockholders—but to the American people, who depend on their Social Security benefits and pay for them over a lifetime of work," said Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, in a Thursday statement.
Richard Fiesta, executive director of the Alliance for Retired Americans, said in a statement that "nothing in Mr. Bisignano's career suggests that he understands the unique needs of older and disabled Americans."
"We are also concerned that his decades on Wall Street will leave SSA with a cheerleader for risky schemes like allowing investment firms and crypto corporations to gamble with the trust funds and benefits that Americans paid for and earned through a lifetime of work," Fiesta added.
Bisignano was previously an executive at Shearson Lehman Brothers and also held positions at JPMorgan Chase and Citigroup. During his tenure at the firm First Data Corp., he was listed as the second-highest paid CEO in the U.S. in 2017, per The New York Times. Bisignano is currently the president and CEO of Fiserv (which merged with First Data Corp. in 2019), a payments and financial technology firm.
"Frank is a business leader, with a tremendous track record of transforming large corporations. He will be responsible to deliver on the Agency's commitment to the American People for generations to come!" Trump wrote on Truth Social earlier this week.
If confirmed, Bisignano would oversee an agency with more than 1,200 field offices and almost 60,000 employees, according to the Times, and his nomination comes at a time when money in Social Security's trust funds, a reserve that is used to make sure recipients get their full payment, could be entirely depleted by 2035.
Meanwhile, Republican lawmakers on Thursday signaled a willingness to target Social Security and other mandatory programs after meeting with Elon Musk and Vivek Ramaswamy, the duo that President-elect Donald Trump has tapped to lead a new commission tasked with slashing federal spending and regulations.
In reaction to Bisignano's nomination, Wisconsin state Sen. Chris Larson (D-7) quipped on X: "Why leave a $28 million/yr gig to work in government? My prediction: to cut Social Security."
"The ultra-wealthy are avoiding nearly $2 trillion in taxes every 10 years," said Sen. Ron Wyden. "That's where we ought to go to start making progress."
The Democratic chair of the Senate Finance Committee said during a hearing Wednesday that instead of tossing Social Security's sacred guarantee "in the trash" by cutting benefits, lawmakers should crack down on mega-rich tax dodgers as a way to keep the New Deal program fully solvent for decades to come.
"The ultra-wealthy are avoiding nearly $2 trillion in taxes every 10 years," Sen. Ron Wyden (D-Ore.) said during a Senate Budget Committee hearing. "That is enough to keep Social Security whole till the end of this century."
"That's where we ought to go to start making progress," Wyden added.
The senator's remarks came during a hearing titled "Social Security Forever: Delivering Benefits and Protecting Retirement Security," which featured testimony from Social Security Administration Commissioner Martin O'Malley and several expert witnesses.
Sen. Sheldon Whitehouse (D-R.I.), who presided over the hearing, used his opening remarks to blast GOP proposals to raise the retirement age, a change he said would "especially hurt low-income retirees."
Whitehouse, the chair of the Senate Budget Committee, acknowledged that some Republicans have pushed back on the notion that the GOP wants to cut Social Security benefits. But if Social Security benefit cuts "really are off the table," the senator said, "that leaves only one other option to prevent insolvency: raise revenue."
"There is no third option. And that means it's time to get to work identifying smart, fair ways to raise revenue, fund the Social Security Trust Fund, and preserve and protect benefits," Whitehouse continued. "Fortunately, there are solutions that would both extend Social Security solvency indefinitely with zero benefit cuts and make our tax system fairer, like my Medicare and Social Security Fair Share Act."
At today's @SenateBudget hearing, @SenWhitehouse slams Republican plans to slash $1.5 trillion from Social Security.
Whitehouse plans to strengthen Social Security by requiring the wealthy to pay their fair share! pic.twitter.com/nWRJt3hUWp
— Social Security Works (@SSWorks) September 11, 2024
Wednesday's hearing came in the heat of a presidential race in which Social Security has featured prominently, with Democrats warning that GOP nominee Donald Trump would push for deep benefit cuts if he's elected to another White House term.
During Tuesday night's debate, Democratic nominee Kamala Harris made the only mention of Social Security, vowing to protect the program that lifted 28 million people out of poverty last year.
Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, said in a statement following the debate that while Harris reinforced "her commitment to Social Security and Medicare," Trump "was mum on the topic."
"At least when Trump has nothing to say, he cannot compound his many conflicting and confusing statements about Social Security and Medicare—from calling Social Security a 'Ponzi scheme' to saying he's 'open' to 'cutting entitlements' and proposing to eliminate some of the taxes that fund Social Security," said Richtman. "Tonight's debate underlines the fundamental reality that one candidate in this race will truly protect Social Security and Medicare—and that is Kamala Harris."
According to the latest trustees report, Social Security is positioned to fully pay all benefits and administrative costs until 2035 and is 90% funded for the next quarter century.
Progressive lawmakers and advocacy groups have argued for years that the best way to ensure Social Security's long-term solvency is clear: make the wealthy pay their fair share into the program. Due to the payroll tax cap, millionaires stopped contributing to Social Security just 60 days into 2024.
"Warren Buffett stops paying into Social Security 30 seconds into the new year," O'Malley said during his testimony at Wednesday's Senate hearing, "and the people that clean these buildings pay in all through their paychecks."
Older Americans shouldn’t have to worry about their earned benefits because MAGA House members once again are willing the hold the government hostage to their extremist aims.
The MAGA faction of the House Republican Conference is once again threatening to disrupt the basic functioning of government to push an unpopular agenda. Last spring, they brought the nation to the brink of default. Now, the House Freedom Caucus is refusing to keep the government from shutting down in September unless a set of extreme demands are met. In both cases, they have displayed a callous disregard for the effect of these machinations on everyday Americans who depend on the smooth operation of government—including, and especially, our nation’s seniors.
While the possibility of a government shutdown does not pose as serious a threat to Social Security and Medicare as the averted federal default would have, it is of serious concern to seniors and their advocates. Most Social Security payments likely would continue to go out because the process is largely automated. But, depending on how long a shutdown might last, customer service for Social Security claimants and beneficiaries could be significantly disrupted.
Customer service at the beleaguered Social Security Administration (SSA) is already suffering from chronic underfunding by Congress. In the event of a shutdown, SSA employees would be forced to continue working (without being paid until the shutdown ended) and they’d be limited to performing only their most basic work functions. Non-automated and non-exempted SSA operations would come to a screeching halt. Current work backlogs would begin to grow again. If that happens, seniors hoping to submit new Social Security claims, replace Social Security cards, or report a change in status may experience delays until the shutdown ends.
At the end of the day, government spending is a moral issue—revealing society’s priorities.
We’re worried that—after more than a decade of Tea Party-initiated budget cuts—the negative impacts on SSA and its customers will not end once the government has resumed operations. The current appropriations levels being considered for the new fiscal year will leave SSA unable to even “tread water” in terms of customer service. In recent years, claimants have experienced field office closures, interminable wait times on hold on the SSA’s 800-phone line, and delays of more than a year for Social Security Disability Insurance (SSDI) appeals hearings. In 2017, Over 10,000 people died awaiting adjudication of their SSDI claims. The trend of Congress’ underfunding this agency looks to continue—and service will continue to deteriorate.
Again, the level of harm to seniors from a government shutdown really depends on how long it lasts. The deeper problem is the willingness of MAGA Republicans to hold the federal government hostage to their unreasonable demands—for the second time in a year. They risked a federal default last spring in order to extort deep cuts in domestic spending that the majority of Americans do not support.
In June, the White House and Speaker Kevin McCarthy (R-Calif.) were able to reach a last-minute deal to lift the debt limit and avert a default. But the deal effectively keeps non-defense spending flat, with funding for FY 2024 failing to keep up with inflation. Unfortunately, many House Republicans are ignoring even that miserly deal. The GOP-controlled House appropriations committees are marking up spending bills at FY 2022 levels, which is considerably lower than in the debt limit agreement.
MAGA Republicans in the House do not seem to care what impact a shutdown would have on everyday Americans. In fact, many MAGA House members seem to relish the prospect of throwing sand in the gears of the federal government. The Freedom Caucus refuses to vote to keep the government open unless their egregious demands are met, demands which are publicly unpopular. These include new laws to address the supposed “weaponization” of government and the revocation of so-called “woke” policies at the Pentagon.
These issues are not only bogus; they have little to do with serious spending policy. One former GOP Senate aide told The Hill that the Freedom Caucus demands are “fundamentally ridiculous.” And yet their agenda to shut down the government can have real consequences for real people, including society’s most vulnerable.
What’s more, many of these same MAGA Republicans have proposed to cut and privatize Social Security—if not for today’s seniors than for their kids and grandchildren. The 2023 House Republican Study Committee budget blueprint called for raising the retirement age to 69 (despite the fact that many older Americans simply cannot work that long); adopting a miserly COLA formula; and means testing benefits, which would cut deep into the heart of the middle class.
So-called “fiscal hawks,” who have no problem making the Trump/GOP tax cuts for the wealthy and big corporations permanent, continue to conflate Social Security with the debt. The program is self-funded by workers’ payroll contributions and does not contribute to the debt. Even Ronald Reagan said, “Social Security has nothing to do with the deficit.”
As seniors’ advocates, we do not believe that older Americans should be shortchanged in the federal budget process. At the end of the day, government spending is a moral issue—revealing society’s priorities. After a lifetime of contributing to this county in innumerable ways—and with the cost of growing old escalating every year—our seniors deserve to be a priority. And they shouldn’t have to worry about their earned benefits because MAGA House members once again are willing the hold the government hostage to their extremist aims.
On Thursday, The White House urged Congress to adopt a short-term measure to fund the federal government, allowing more time to craft a spending deal and avert a shutdown. Congress should heed the president’s request.