Which President Borrowed The Most From Social Security? Revealed! [Updated 2026]

In this blog post, we explain how Social Security functions as a self-funded safety net supported primarily by payroll taxes paid by workers and employers. Since the 1983 reforms, surplus payroll tax revenue has been invested in special-issue U.S. Treasury securities, meaning the funds are legally loaned to the federal government in exchange for interest — a long-standing practice rather than an act of “stealing.” As of February 2026, the Social Security Trust Funds continue to hold trillions of dollars in Treasury bonds, though reserves are projected to decline in the coming years without legislative changes. We will address common misconceptions about presidential “borrowing” and clarify how the system actually works, including the frequently asked question: which president borrowed the most from Social Security? Let’s break down the facts.

What Is the Social Security Fund?

The Social Security Fund refers to the Social Security Trust Funds, which are financial accounts managed by the U.S. Treasury to support the nation’s Social Security program. These funds collect and hold surplus payroll tax contributions so benefits can be paid consistently, even when current tax revenue is not enough to cover obligations.

There are two main trust funds:

• Old-Age and Survivors Insurance (OASI) Trust Fund – Pays benefits to retired workers, their families, and survivors of deceased workers.
• Disability Insurance (DI) Trust Fund – Pays benefits to individuals with qualifying disabilities and their dependents.

How the Funds Are Financed

Social Security is primarily funded through payroll taxes under the Federal Insurance Contributions Act (FICA):

• Employees pay 6.2% of their earnings.
• Employers match that with another 6.2%.
• Self-employed workers pay the full 12.4% under the Self-Employment Contributions Act (SECA).

These contributions are deposited into the trust funds and used to pay benefits to:

• Retired workers
• People with disabilities
• Spouses and dependents
• Survivors of deceased workers

What Happens to Surplus Money?

When payroll tax income exceeds the amount needed to pay current benefits, the surplus is invested in special-issue, interest-bearing U.S. Treasury securities. These securities are backed by the full faith and credit of the U.S. government and earn interest over time.

If Social Security needs more money than it collects in payroll taxes — as has increasingly occurred in recent years — the trust funds redeem those Treasury bonds to cover the difference.

Legal Status of the Trust Funds

The Social Security Trust Funds:

• Can only be used to pay benefits and administrative costs
• Are legally separate from general federal spending
• Are required by law to invest reserves in U.S. Treasury securities

Although the funds are accounted for separately, they operate within the broader federal financial system.

In Simple Terms

The Social Security Fund is a dedicated reserve built from payroll taxes and invested in government bonds. Its purpose is to ensure that eligible Americans continue receiving retirement, disability, and survivor benefits — even when annual tax income alone is not enough to meet payment obligations.

Beliefs About President George W. Bush and Social Security

During the presidency of George W. Bush, some critics argued that Social Security surplus funds were effectively used to help finance federal income tax cuts and the Iraq War. These claims gained attention in part due to commentary from Allen W. Smith, an economics professor at Eastern Illinois University, who wrote in 2009 that the Bush administration had spent Social Security surpluses on broader government priorities.

To understand this issue accurately, it is important to separate political rhetoric from how the system actually works.

How the Surplus Was Used

Throughout the 1980s, 1990s, and early 2000s, Social Security collected more in payroll taxes than it paid out in benefits. By law, those excess funds were invested in special-issue U.S. Treasury securities. This meant the federal government used the surplus cash for general operations — including defense spending, tax policy changes, and other programs — while issuing legally binding Treasury bonds to the Social Security Trust Funds.

This process did not begin under President Bush. It has been standard practice for every administration since the 1983 Social Security reforms.

Was It “Stealing”?

There is no verified evidence that President Bush — or any president — illegally took money from Social Security. The surplus funds were invested in government-backed securities, which earn interest and are legally required to be repaid. When Social Security needs additional funds beyond current payroll tax revenue, the Treasury redeems those bonds.

While critics argue that using surplus payroll taxes to offset other federal spending increases overall national debt obligations, the transactions themselves follow established law.

The Broader Context

The debate surrounding President Bush’s policies often reflects broader disagreements over fiscal management, tax cuts, military spending, and long-term entitlement reform. In 2005, Bush also proposed partially privatizing Social Security, which sparked significant national debate — but that proposal did not pass Congress.

How Much Money Has Been “Borrowed” From the Social Security Fund?

The short answer is: U.S. presidents do not directly “borrow” money from Social Security in a personal or discretionary way. Instead, since 1983, surplus payroll tax revenue has automatically been invested in special-issue U.S. Treasury securities. That means the federal government uses the surplus cash for general operations and, in return, issues legally binding Treasury bonds to the Social Security Trust Funds.

Understanding the Numbers

Over several decades — particularly from the mid-1980s through around 2010 — Social Security collected more in payroll taxes than it paid out in benefits. During that period:

• The cumulative surplus invested in Treasury securities grew into the trillions of dollars.
• At its peak in the late 2010s and early 2020s, the combined Social Security Trust Fund reserves exceeded $2.8 trillion.
• As of early 2026, the trust funds still hold roughly $2–3 trillion in Treasury securities, though reserves are gradually declining as benefits exceed annual payroll tax income.

These amounts represent total accumulated surpluses invested over decades — not money taken by a single president.

Claims About Specific Presidents

There have been political claims that certain presidents “borrowed” hundreds of billions from Social Security. For example:

• Some commentaries have alleged that President George W. Bush borrowed hundreds of billions from Social Security reserves during his administration.
• Other figures circulated online suggest total federal borrowing from Social Security reached $1.7 trillion at various points.

However, these figures generally reflect the cumulative Treasury securities held by the trust funds, not a discretionary withdrawal ordered by an individual president.

What About the 1980s Inter-Fund Borrowing?

In the early 1980s, before the 1983 reforms fully stabilized the system, Social Security experienced short-term cash flow issues. Congress temporarily allowed limited inter-fund borrowing between:

• The Old-Age and Survivors Insurance (OASI) Trust Fund
• The Disability Insurance (DI) Trust Fund
• The Medicare Hospital Insurance Trust Fund

About $17.5 billion was borrowed during that period and later repaid. This was a temporary accounting measure, not a permanent diversion of funds.

The Bigger Picture

It is more accurate to say that:

• All administrations since 1983 have operated under the same system in which Social Security surpluses are invested in Treasury bonds.
• The federal government has used the surplus cash for general spending, while legally owing the trust funds repayment with interest.
• The trust funds are credited with interest annually, and those bonds are redeemed when needed to pay benefits.

Why This Matters

Understanding how this system works is critical. The issue is not about a single president “taking” money, but about how federal budgeting and trust fund financing are structured under U.S. law. The trust funds remain backed by Treasury securities, but long-term projections show that without legislative changes, reserves will continue to decline in the coming years.

Clear information helps separate political rhetoric from financial reality — especially for the millions of Americans who depend on Social Security benefits for retirement, disability support, and survivor protection.

Who Was the First President to “Dip Into” Social Security?

Franklin D. Roosevelt signed the Social Security Act of 1935 into law on August 14, 1935, creating the Social Security program as a federal retirement safety net funded by payroll taxes.

However, the idea that a president “dipped into” Social Security is largely based on a misunderstanding of how the system works.

How Social Security Is Funded

Social Security is primarily financed through payroll taxes paid by workers and employers. Those taxes are used to pay benefits to:

• Retired workers
• People with disabilities
• Survivors of deceased workers
• Eligible spouses and dependents

When payroll tax collections exceed benefit payments — which occurred for many years after reforms in 1983 — the surplus is placed into the Social Security Trust Funds.

When Did the Government Start Using the Surplus?

After the 1983 bipartisan Social Security reforms, surplus payroll taxes were required by law to be invested in special-issue U.S. Treasury securities. This means:

• The cash from the surplus goes into the U.S. Treasury.
• The Trust Funds receive government-backed bonds that earn interest.
• The government is legally obligated to repay those bonds with interest when needed.

This practice began under Ronald Reagan following the 1983 amendments — not as an isolated action by a single president, but as a structural financing system approved by Congress.

So Who Was the First?

If the question refers to when Social Security surplus funds first began being used within general federal financing, that process effectively started after the 1983 reforms during the Reagan administration.

However, no president has legally or secretly “raided” Social Security. The system has operated under the same structure across Republican and Democratic administrations for more than four decades.

How does borrowing from the social security fund affect the federal budget

When Social Security collects more in payroll taxes than it needs to pay current benefits, the surplus is invested in special U.S. Treasury bonds. The federal government uses that cash for general spending, which can temporarily reduce the reported federal deficit because it lowers the need to borrow from the public. However, this does not eliminate the government’s obligation. The Treasury must repay the Social Security Trust Funds with interest when the program needs the money to cover benefit payments.

As Social Security now pays out more in benefits than it collects in payroll taxes, the government must redeem those bonds. To do that, it may need to raise taxes, cut spending, or borrow more from the public. This increases pressure on the federal budget. In short, borrowing from Social Security affects when and how the government finances its spending, shifting some costs into the future while remaining legally required to repay the trust funds.

Misconceptions About Political Parties and Social Security

A common claim is that a political party moved Social Security money out of its independent trust fund and into the general fund so Congress could freely spend it. That claim is inaccurate.

The Social Security Trust Funds were formally established in 1939 following amendments to the original Social Security law. From the beginning, surplus payroll tax contributions have been credited to these trust funds and invested in special-issue U.S. Treasury securities. The funds have never been merged into a general “checking account” for unrestricted congressional use.

Confusion often stems from changes in federal budget reporting. Beginning in 1969, Social Security transactions were included in the federal government’s “unified budget,” which combines most government activities into a single set of totals. This accounting approach made overall deficit figures appear different, but it did not legally transfer or eliminate the trust funds.

By law, any surplus invested in Treasury securities must be repaid with interest. Congress is required to honor those obligations. While debates continue over long-term financing, there is no verified evidence that a political party confiscated or misappropriated Social Security funds.

Has President Biden Borrowed from Social Security? A Closer Look at the Facts

There is no evidence that Joe Biden has “borrowed” from Social Security in a unique or unlawful way.

To understand the issue, it’s important to know how Social Security financing works. When payroll tax revenue exceeds benefit payments, the surplus is automatically invested in special-issue U.S. Treasury securities. This system has been in place since the 1983 reforms and applies to every administration — Republican and Democratic alike.

During years when Social Security ran surpluses, the federal government used the excess cash for general operations while issuing Treasury bonds to the Social Security Trust Funds. Those bonds earn interest and must legally be repaid when the funds need the money to pay benefits.

In recent years, Social Security has paid out more than it collects in payroll taxes, meaning the Trust Funds are now redeeming Treasury bonds. When that happens, the government must raise funds through taxes, spending adjustments, or public borrowing to meet its obligations.

In short, President Biden has operated under the same financing structure that has existed for decades. There is no verified evidence that he diverted or “raided” Social Security funds.

Has President Trump Borrowed from Social Security? A Closer Look at the Facts

There is no evidence that Donald Trump directly borrowed money from the Social Security Trust Fund in a way that is unique to his presidency. Like every president since the 1983 Social Security reforms, any surplus payroll tax revenue collected during his term was automatically invested in special-issue U.S. Treasury securities, as required by law. These securities are owed back to the Social Security Trust Funds with interest when needed to pay benefits.

It is important to clarify another point: there is no factual basis for claims about a “Department of Government Efficiency (DOGE)” led by Elon Musk or about Trump using such a department to close Social Security offices — that description does not reflect any real federal agency or documented policy.

However, discussions around Social Security during the Trump administration did touch on budget priorities, administrative efficiency, and the operation of the Social Security Administration (SSA). Like other administrations, proposals around staffing, office locations, and funding levels were debated publicly, but these are administrative policy discussions — not evidence of Social Security fund diversion or “borrowing.”

In short, President Trump did not uniquely tap or take Social Security funds; the financing structure remained governed by the same law that applies to all presidents.

Conclusion

When discussing Social Security, it is critical to separate political rhetoric from financial reality. Since the 1983 reforms, surplus payroll tax revenue has been invested in special-issue U.S. Treasury securities. This means the federal government uses the surplus cash for general operations while issuing legally binding bonds to the Social Security Trust Funds. That structure has applied to every administration since then. It is not theft, nor is it an unlawful raid on the system. The Treasury is required by law to repay those funds with interest when needed to pay benefits.

Claims that President George W. Bush diverted Social Security money to fund tax cuts or the Iraq War remain unproven. While his administration, like others, operated within the trust fund financing system, there is no verified evidence of illegal misuse.

Similarly, the idea that a political party transferred Social Security into the general fund for unrestricted spending is incorrect. Although Social Security has been included in the unified federal budget since 1969 for accounting purposes, the trust funds remain legally separate and must be honored in full.

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