May 12, 1981 (Tuesday)
- U.S. Secretary of Health and Human Services Richard Schweiker announced the Reagan administration's plan to balance the budget by reducing social security benefits paid for early retirement from 80% of the full rate to 55%. The proposal was so unpopular that both Republicans and Democrats agreed on it, voting 96-0 on a resolution to condemn the idea.
- Died: Benjamin H. Sheares, 73, President of Singapore since 1971; and Francis Hughes, 25, hunger striker at Maze Prison
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