State of the Union: Biden ad-libs a Social Security challenge to the GOP

It was widely expected that President Biden would have a section in his State of the Union address focused on entitlement programs. But when that part arrived Tuesday night, it didn’t go as scripted.

“Some Republicans want Social Security and Medicare to sunset” and be regularly renegotiated, the president led off, while also acknowledging that the entire party wasn’t necessarily behind that controversial idea.

GOP leaders have said the programs aren't on the chopping block and Biden's point provoked one of the loudest jeers of the night in the audience. Some Republicans were caught on camera looking thunderstruck, prompting even Rep. Marjorie Taylor Greene (R-GA) to stand and shout “liar” at Biden.

“Anybody who doubts it, contact my office. I’ll give you a copy of the proposal,” Biden responded. That line was not in his prepared remarks and was a clear reference to a plan from the 2022 campaign put together by Sen. Rick Scott (R-FL) as he led GOP efforts to win the Senate.

The document directed that “all federal legislation sunsets in five years" and ended up being more popular among Democrats like Biden — who brought the literal pamphlet to his own campaign stops — than Republicans.

Biden pressed his point on Tuesday and strayed further from his prepared remarks: “I’m glad to see, I enjoy conversion,” he said and prompted the entire chamber to “stand up for seniors.” A standing ovation followed along with rare applause from Speaker Kevin McCarthy (R-CA) seated behind him.

"We have unanimity!" Biden declared.

But the lasting power of the moment remains to be seen.

After the speech, Republicans lambasted the move, with House Ways and Means Chairman Jason Smith (R-MO) claiming that increased government spending by Democrats is what is putting the programs at risk. Biden is “misleading the American people about Republicans’ commitment to protect these vital programs," he said.

Sen. Scott reacted to his callout in the speech by saying Biden was lying and calling on him to resign.

Meanwhile, the reviews from many of Biden’s political allies were positive.

“What pundits don’t understand about Pres. Biden is that he wants all the smoke,” wrote Patrick Gaspard, president of the Center for American Progress, on Twitter. "He baited the MAGA crew into the fight he wanted.”

For his part, McCarthy has repeatedly promised that these entitlement programs are "off the table" in the coming debt limit negotiations. But Democrats counter by saying the math simply doesn't add up if the Speaker wants to move towards a balanced budget and tax increases are a non-starter.

Republicans have also waded into the issue of benefit cuts on the 2022 campaign trail and with various ideas floated this year. Just last week, Former Vice President Mike Pence talked about his desire to “reform” Social Security and institute private savings accounts for recipients.

News from the president on Medicare

Also during Tuesday night’s back and forth, Biden previewed his budget proposal, which he is set to release on March 9. He announced his forthcoming plan would lower the deficit by $2 trillion and “extend the Medicare Trust Fund by at least two decades.”

Biden said he’d pay for it with tax proposals he outlined elsewhere in the speech, including instituting a new “billionaires minimum tax” and quadrupling the tax on corporate stock buybacks.

The forthcoming plan from Biden is unlikely to be enacted into law — presidential budget proposals rarely are — but will be a key marker in the coming talks.

A recent government trustees report found that, with no action from Congress, the key Medicare trust fund will likely run low by 2028. Social Security's reserves fund is set to last through 2034.

Most nonpartisan experts say that to avoid involuntary benefit cuts to these programs — which constitute a third of the federal budget each year — some combination of tax increases and benefit cuts will be needed if lawmakers can earn bipartisan support.

Either way, don't expect the issue to die down anytime soon.

President Biden's schedule this week includes a trip to Florida for a speech focused on "his plan to protect and strengthen Social Security and Medicare and lower healthcare costs."

Ben Werschkul is Washington correspondent for Yahoo Finance.

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