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The Social Security Administration (SSA) is under fire after sending out an official email and posting a public message falsely claiming that President Donald Trump’s new tax and spending law eliminates federal income taxes on Social Security benefits for nearly 90% of recipients.
The misleading statement, included in a mass email and posted on the SSA’s website Thursday, coincided with Trump’s July 4 ceremony to sign the so-called “One Big Beautiful Bill” into law, and has prompted backlash from lawmakers and former SSA officials.
“The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits,” the email claimed. “Providing meaningful and immediate relief to seniors.”
However, tax experts, nonpartisan budget analysts, and former SSA officials confirm this is untrue: the legislation does not eliminate federal taxes on Social Security benefits. In fact, under Senate budget reconciliation rules, any direct changes to Social Security are legally prohibited.
What the Law Actually Does
The GOP’s new tax law — passed by Republicans in both chambers without Democratic support — extends Trump’s 2017 tax cuts and adds a temporary tax deduction of up to $6,000 for seniors over 65, or $12,000 for married senior filers.
While the White House’s Council of Economic Advisers argued that this deduction would effectively shield most seniors from paying taxes on their benefits, the law itself does not eliminate those taxes — a distinction critics say is being deliberately blurred.
“This email went to every Social Security subscriber and every word of it is a lie,” said Rep. Frank Pallone (D-N.J.), the ranking member on the House Energy and Commerce Committee.
“It’s disturbing to see Trump hijack a public institution to push blatant misinformation.”
Blowback from Former Officials
Jeff Nesbit, who served as Deputy Commissioner of the SSA under President Biden, called the move “unconscionable.”
“The agency has never issued such a blatant political statement,” Nesbit said. “The fact that Trump and his minion running SSA has done this is unbelievable.”
Nesbit, a longtime civil servant who also served under Presidents George H.W. Bush, George W. Bush, and Barack Obama, emphasized that the SSA has historically been a nonpartisan institution focused on serving beneficiaries, not promoting political agendas.
The current SSA Commissioner, Frank Bisignano, a Trump appointee and former banking executive, defended the messaging in the email, calling the tax law “a historic step forward for America’s seniors.”
“By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security,” Bisignano wrote.
Democrats Call for Accountability
Congressional Democrats are now demanding an investigation into how and why the SSA disseminated misleading information.
Critics say the email violates norms of political neutrality and undermines public trust in one of the most respected and widely used federal agencies.
They also warn that misinformation could affect how seniors plan their finances, particularly during a time of rising costs and ongoing debates over the future of entitlement programs.
“Social Security is not a campaign ad,” said Sen. Ron Wyden (D-Ore.), chairman of the Senate Finance Committee. “Using taxpayer resources to spread propaganda is a clear abuse of power.”
What Beneficiaries Need to Know
Despite the SSA’s message and Trump’s repeated public claims — including statements at rallies and during the bill-signing — Social Security benefits remain subject to federal income tax under current law.
The actual tax relief for seniors comes only through the temporary deduction, which applies broadly to income and does not specifically exempt Social Security benefits. And while most lower-income seniors already pay little or no tax on those benefits, the law does not fundamentally change how Social Security is taxed.
According to the Social Security Administration, over 70 million people currently receive benefits through retirement, disability, and survivor programs.
Bottom line: Trump’s new law may offer modest tax relief for some seniors — but contrary to what the SSA email claims, it does not eliminate Social Security taxation, and experts warn against relying on misleading government communications to make financial decisions.
