Economists are just beginning to get a picture of just how much the ongoing recession may impact some of the federal government's biggest programs.
The Social Security and Medicare trustees released a report in April looking at the state of the nation’s most prominent trust funds.
A “trust fund” is government lingo for a pot of money funded from a specific source, which is then “dedicated by law for specific purposes.” In other words, it’s a part of the federal budget but is self-contained and operates on its own trajectory .Social SecuritySocial Security is technically two trust funds: the Old-Age and Survivors Insurance fund and the Disability Insurance fund. The first one is the biggie: it’s one of the largest programs in the federal government, with $2.
Goldwein’s more recent analysis projects depletion by 2031 – about halfway between those two estimates. Hospital Insurance Trust Fund is the money behind Medicare Part A, which covers hospital visits and home health care, and is the part of the program in dire economic straights. Highway Trust FundThe Highway Trust Fund pays for much of the federal government’s spending on roads and highways. It was founded in 1956 to help build the interstate highway system and its funding largely comes from gasoline taxes.
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