Social Security Administration Commissioner Frank Bisignano sent an email on July 3, 2025, to 71 million Americans with online MySSA accounts claiming that a new federal tax law would eliminate income taxes on Social Security benefits for most beneficiaries—a statement that was inaccurate and sparked immediate backlash from Democratic lawmakers and policy experts.
The email, titled “Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors,” praised the “One Big Beautiful Bill Act” (also known as H.R. 1) and stated it “ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits.” According to the Kentucky State AFL-CIO and Empire Justice Center, the law does not eliminate taxation of Social Security benefits; instead, it creates a temporary tax deduction of up to $6,000 for single filers and $12,000 for married couples aged 65 and older that expires in 2028. The deduction also phases out at higher incomes and applies to only about half of all Social Security recipients.
The email drew criticism from former Social Security officials and members of Congress. The House Ways and Means Committee sent a formal letter to Bisignano demanding a correction, and Democratic senators led by Senate Finance Committee Ranking Member Ron Wyden also wrote to the agency. Critics argued that the message was unprecedented for the historically apolitical SSA and raised concerns about whether it violated the Hatch Act’s prohibition on federal employees using their roles to influence elections.
The Los Angeles Times columnist Michael Hiltzik reported that the Social Security Administration had to append a correction to its press release, though one did not go out to the millions of Americans who received the initial email. The correction clarified that the deduction is temporary, limited by income thresholds, and does not apply to beneficiaries under age 65. The tax break disproportionately benefits wealthier seniors, as the taxation of Social Security benefits is calculated on modified adjusted gross income.
On July 23, 2025, in a meeting with Senator Elizabeth Warren, Bisignano admitted that his team at SSA was responsible for the initial email and that it had been discussed with the White House. However, according to Warren’s press release, Bisignano said he did not know whether the email had been reviewed by SSA’s Office of General Counsel before it was sent to all beneficiaries. When Warren asked whether he planned to send a correction to all beneficiaries, Bisignano said he believed the email had “aged” and did not require a follow-up—a response that drew further criticism given the scale of the misinformation.
The episode raised broader concerns about the impact of the tax provision on Social Security’s long-term solvency. According to the Committee for a Responsible Federal Budget, the reduction in tax revenue from Social Security benefits will pare income by about $30 billion annually, accelerating the exhaustion of the program’s trust funds from 2033 to 2032, according to reporting cited by the Los Angeles Times. The tax reduction also affects Medicare, reducing revenues that support hospital insurance by nearly 9 percent.
