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Please note!
This fact brief was originally published as an experiment to test the concepts behind fact briefs.
Readers should be aware that while there is still a lot of useful information in fact briefs like this one, not all of them reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date, don't hesitate to contact us at support@gigafact.org.
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FACT BRIEF

Is Social Security funded separately from other government spending?

By Austin Tannenbaum
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YES

While general tax revenue may be spent on any government expense, Social Security is funded by revenues from the dedicated payroll tax which must be spent on the program. Workers who pay into the program become eligible to collect benefits upon retirement. Revenue is allocated to those currently eligible for benefits rather than kept in individual accounts.

If more revenue is collected than disbursed, the difference is saved for future use. For the first time since 1981, Social Security will run a deficit in 2021. Assuming deficits continue, Social Security would be insolvent by 2034. At or before that point, benefits would have to be reduced or the program would have to be restructured.

Social Security funding is thus “off-budget” and not part of the Congressional budgeting process. Its finances are considered in ”unified” views of the budget that include all government activity.

This fact brief is responsive to conversations such as this one.
Sources
US Social Security Administration Understanding the benefits
US Social Security Administration Trust fund data
Committee for a Responsible Federal Budget Analysis of the 2021 Social Security Trustees' report
Center on Budget and Policy Priorities Policy Basics: Understanding the Social Security Trust Funds
Tax Policy Center What does it mean for a government program to be off-budget?
Congressional Research Service Social Security, deficits and debt
Reuters Social Security and the US deficit: Separating fact from fiction
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Gigafact
Between 2020 and 2022, under close editorial supervision, Gigafact contracted a group of freelance writers and editors to test the concepts for fact briefs and provide inputs to our software development process. We call this effort Gigafact Foundry. Over the course of these two years, Gigafact Foundry writers published over 1500 fact briefs in response to claims they found online. Their important work forms the basis of Gigafact formats and editorial guidelines, and is available to the public on Gigafact.org. Readers should be aware that while there is still a lot of relevant information to be found, not all fact briefs produced by Gigafact Foundry reflect Gigafact's current methods and standards for fact briefs. If you come across any that you feel are out of date and need to be looked at with fresh eyes, don't hesitate to contact us at support@gigafact.org.
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About fact briefs published on Gigafact
Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.