President-elect Donald Trumpwinning the election is likely to have “significant implications” and “raise questions” for the funding of the Social Security program, experts said. Newsweek.

Republican Trump will become the 47th president after the decisive defeat of the Democrats Kamala Harris on November 5. Among his campaign pledges, Trump has promised to repeal taxes on Social Security incomewhich is paid by about 40% of current beneficiaries, according to the Social Security Administration (SSA).

Under current rules, people earning between $25,000 and $34,000 a year are subject to taxes on up to 50% of Social security income. If they earn more than that, up to 85% of the benefits can be taxed.

While the pledge will put more money in the pockets of beneficiaries in the short term, experts have warned that it could have an impact on the Social Security funding coffers. The SSA Trustees’ 2023 Report, released earlier this year, found that the trust funds that support the nation’s largest benefit system for retirees, survivors of deceased workers and people with disabilities are set to run out of funds in 2035.

Until then, beneficiaries are expected to receive only 79% of their full benefits unless action is taken by Congress to ensure its solvency.

“This Trump victory could have significant implications for Social Security,” said Cliff Ambrose, founder and wealth manager at Apex Wealth. Newsweek. “His proposed tax cuts, aimed at reducing payroll taxes, could further strain funding for the Social Security Administration, as payroll taxes are a primary source of funding for Social Security benefits.”

According to research by the Committee for a Responsible Federal Budget (CRFB) in October, Trump’s policies — including eliminating taxes on Social Security income and tips, imposing tariffs and speeding up the deportation of undocumented immigrants — would escalate Social Security’s cash shortfall in next decade by $2.3 trillion, accelerating the program’s insolvency to 2031 — three years earlier than previously forecast.

The think tank estimated that eliminating income taxes on Social Security benefits could result in about $950 billion in lost revenue for the SSA.

“The so-called experts at CRFB have been consistently wrong over the years. President Trump delivered on his promise to protect Social Security in his first term, and President Trump will continue to vigorously protect Social Security in his second term,” said Karoline Leavitt, National Press Secretary for the Trump campaign Newsweek.

“Without a replenishment or funding strategy, these cuts could accelerate the need for reforms such as reducing benefits, adjusting the retirement age or increasing eligibility requirements,” said Brandy Burch, CEO of benefitbay. Newsweek.

Ambrose agreed that Trump will need to address the revenue shortfall to avoid a benefit cut: “The outcome of Trump’s proposals would depend heavily on whether alternative financing solutions accompany these tax changes.”