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What does the Federal Insurance Contribution Act primarily fund?

  1. Universal healthcare access

  2. Social Security programs

  3. Federal education programs

  4. Public transportation systems

The correct answer is: Social Security programs

The Federal Insurance Contribution Act (FICA) primarily funds Social Security programs, which provide financial assistance to individuals who are retired, disabled, or survivors of deceased workers. FICA mandates a payroll tax that is collected from both employees and employers to support Social Security and Medicare. The revenue generated from this tax is crucial for the sustainability of these programs, ensuring that they can continue to provide benefits to eligible individuals. While other programs like universal healthcare, federal education, and public transportation may receive funding from various governmental sources, they are not directly funded by FICA. Social Security plays a vital role in providing a safety net for millions of Americans, making it the primary beneficiary of the funds collected through FICA. Understanding the significance of FICA in sustaining Social Security helps in recognizing its role in the broader context of social welfare and economic support systems in the United States.