Cape News

Four rules recently finalized by the Social Security Administration (SSA) have sparked criticism from key members of Congress. The rules, which are projected to cost taxpayers nearly $40 billion over the next decade, are seen as part of what some lawmakers describe as an expansion of federal power under the Biden-Harris Administration.

House Ways and Means Chairman Jason Smith (R-MO), Work and Welfare Subcommittee Chairman Darin LaHood (R-IL), Social Security Subcommittee Chairman Drew Ferguson (R-GA), Budget Committee Chairman Jodey Arrington (R-TX), and Budget Committee Oversight Task Force Chair Jack Bergman (R-MI) expressed their concerns in a letter to Social Security Commissioner Martin O’Malley. They argue that these new regulations bypass fiscal accountability measures set by the bipartisan Fiscal Responsibility Act.

The lawmakers contend that the administration's inability to offset the costs associated with these rules will exacerbate the national debt and undermine the financial stability of Social Security programs. The timing is particularly concerning as the combined Social Security Trust Funds face potential insolvency within a decade.

In their letter, they stated: “Under your leadership, the Social Security Administration (SSA) has quietly finalized four rules that continue the Biden-Harris Administration’s parade of regulatory overreach that circumvents Congress and costs taxpayers billions just months before the 2024 election…During your testimony at a Committee on Ways and Means hearing in March you claimed this rulemaking was done to reduce administrative burdens and simplify benefit calculations. However, the SSA estimates these rules, taken together, would increase program costs by nearly $40 billion while resulting in less than $1 billion in administrative savings."

Commissioner O'Malley defended his agency's actions during a March Ways and Means hearing, asserting compliance with "the letter of the law." However, critics argue that failing to find offsets for these expenditures violates requirements outlined in the Fiscal Responsibility Act.

The legislators further noted: “We have serious concerns about the way in which the SSA promulgated these regulations and whether the agency complied with Administrative PAYGO requirements included in the Fiscal Responsibility Act (FRA) (P.L. 118-5)."

The full letter detailing these concerns is available for public review.