The Social Security Board of Trustees released on June 18, 2025 its annual report on the financial status of the Social Security Trust Funds, with projections on sufficiency of revenue.

In a press release, the Social Security Administration said that the combined Social Security and Disability Insurance trust funds are projected to run out of resources to pay all scheduled benefits by 2034, one year earlier than last year’s projections. After 2034, the fund is projected to cover only 77% of scheduled benefits.

The change is primarily due to the enactment of the Social Security Fairness Act, signed into law on January 5, 2025, which repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) that previously reduced or eliminated benefits for nearly 3 million retirees and their spouses.

Additionally, Medicare Hospital Insurance trust fund reserves are now projected to be depleted by 2033, three years earlier than projected last year, according to the 2025 annual Social Security and Medicare Trustees Report. After 2033, the trust fund will only be able to cover 89% of scheduled benefits. The Hospital Insurance trust fund helps pay for inpatient hospital services, skilled nursing facility services, home health, and hospice care.

The report noted that Medicare expenditures for hospital and hospice care in 2024 were higher than the trustees had anticipated last year, which increased the base level of spending going forward. In 2024, Medicare covered 67.6 million people: 60.3 million aged 65 and older, and 7.3 million people with disabilities.