The Significance of Federal Social Transfers in the US: Evolution of Approaches

The paper focuses on federal transfers, their dynamics, structure and their role for the American households amid financial-economic and geopolitical challenges. It contributes to a debate on different aspects of social transfers – based both on the principles of insurance and welfare. Particularly important for the aged low-income groups, the Social Security Program faces financing problems in the coming years due to payments exceeding payroll taxes. The paper also points out the transformation of approaches to welfare programs for lowincome Americans during the first three years of Trump’s presidency, aimed at expanding individual possibilities to reduce their dependence on government safety-net programs and achieve self-sufficiency. After more than two years of extraordinary budget spending to provide relief to Americans during the pandemic and its consequences, the budget proposals from the Biden administration seem impressive, reflecting a wide range of needs for continuing financing of social programs for needy families, medical assistance, education, etc., with special attention to the economic situation. Although Biden’s proposed budget is expected to reduce the deficit, it still faces fiscal challenges; according to Congressional Budget Office projections, both the budget deficit and the public debt remain huge.

federal transfers, budget priorities, government policy