Eric Hovde’s economic plan would threaten veteran’s benefits and Social Security

Republican U.S. Senate candidate Eric Hovde said that all federal spending should be cut back to 2019 levels. This plan could imperil veterans’ benefits and lead to cuts to Social Security.

Hovde made the statement in an Oct. 1 interview with WUWM radio. He argued that reckless government spending, particularly programs enacted at the height of the COVID-19 pandemic, were contributing to economic instability.

When the interviewer pressed Hovde on which specific federal programs he would cut, he gave a clear response: “All programs should be pulled back to 2019 levels.”

Hovde singled out the Inflation Reduction Act and the CHIPS and Science Act, both signed into law by President Joe Biden, as two programs that were driving inflation and should be reversed.

Hovde’s analysis, however, may be flawed. Inflation resulting from the COVID-19 pandemic was a global phenomenon driven by supply chain disruptions and was not unique to the United States. Furthermore, the U.S. Bureau of Labor Statistics recently reported that the inflation rate had fallen to 2.4%, close to where it was pre-pandemic.

Scaling all federal programs back to 2019 spending levels would result in an $82.6 billion cut to the Department of Veterans Affairs (VA). Since 2019, the bulk of spending increases at the VA has gone towards disability compensation, pension payments, and benefits for families of fallen servicemembers.

Hovde’s plan would also threaten the PACT Act of 2022, a bill that expands health care benefits for veterans that were exposed to toxic substances. The bill specifically aims to help veterans who were exposed to Agent Orange during the Vietnam War and toxic burn pits in Iraq and Afghanistan. Veterans exposed to these substances have experienced higher rates of cancer and respiratory illnesses.

Federal spending on Social Security has increased by approximately 28% since 2019. This is due in part to the number of baby boomers that are retiring. The Social Security Administration estimates that the average monthly Social Security benefit is $1,872.09. If this amount were cut by 28% it would deprive beneficiaries of more than $500 a month.

Hovde has flirted with cutting Social Security in the past. Hovde talks frequently about wanting to lower the national debt and deficit. In June, he agreed with an interviewer’s assessment that there was no way to accomplish this goal without cutting Social Security and Medicare. 

Hovde is challenging incumbent Democratic Sen. Tammy Baldwin. Two recent polls showed Baldwin leading Hovde by one percentage point.