This article summarizes pieces of legislation. The views expressed do not necessarily reflect those of Across the Aisle™ or its programs, including Free the Facts™ and Answer the Call™.
Social Security turns 91 this year, and it’s showing its age. Its trust fund, which covers the gap between taxes collected and retirement benefits paid, is projected to run out of funding in 2032. When this happens, Social Security will continue paying benefits using incoming taxes, but without the trust fund to supplement, retirees’ checks will be automatically reduced by 22%.
In response, lawmakers across the political spectrum have proposed a range of legislative options to strengthen the program’s finances. Some would directly change how Social Security raises or invests money, while others would establish a process for Congress to develop a broader solution.
Here are four of the most prominent legislative options on the table.
The Fiscal Commission Act
The Fiscal Commission Act, introduced in March 2026, would create a bipartisan commission composed of 12 lawmakers from both chambers of Congress and four nonvoting outside experts.
The commission would develop legislation to stabilize the growing national debt, and make Social Security, Medicare, and other federal trust funds financially secure for the next 75 years. While designing this legislation, the commission would hold public hearings and release its findings and proposals to the public.
If the commission approved a plan, the legislation would receive expedited consideration in Congress, helping it reach a floor vote without some of the procedural delays that often prevent major fiscal proposals from advancing.
The PROMISE Act
The bipartisan Protecting Retirement Opportunities and Maintaining Income Security for Everyone (PROMISE) Act focuses on the process Congress would use to develop a solution for Social Security insolvency. It would not immediately raise taxes or reduce benefits. Instead, it would require lawmakers to publicly debate potential reforms and vote on a long-term plan.
The independent, bipartisan Social Security Advisory Board would develop legislation to keep the program solvent for at least 50 years. The proposal would then go to the Senate Finance and House Ways and Means Committees, where lawmakers could hold hearings and make changes.
If the committees did not advance the legislation by November 9, 2026, it would automatically move to the House and Senate floors. Lawmakers could offer amendments, but a final vote would be guaranteed after November 16, 2026. Passage would require three-fifths of the Senate and a majority of the House.
Social Security 2100
In July 2026, Rep. John Larson (D-CT) and Sen. Richard Blumenthal (D-CT) introduced the Social Security 2100 Act. which would raise additional revenue for Social Security while expanding benefits. Beginning in 2027, the bill would completely eliminate the cap on earnings subject to the Social Security payroll tax.
Currently, workers and employers only pay the tax on earnings up to an annual limit of $184,500 — this legislation would remove that limit. This means that workers making more than $184,500 would pay the 12.4% payroll tax on all their wages. Those newly taxed earnings would count toward future benefits, but at a much lower rate than earnings below the current cap.
Additionally, the bill would apply a 12.4% Social Security tax to investment income for individuals earning more than $400,000. That means a high-income person who makes money from savings or investments would pay Social Security taxes on that income in addition to the Social Security taxes they pay on their salaried wages.
The proposal would also increase benefits by 2% for all beneficiaries, increase annual cost-of-living adjustments, and raise the minimum benefit for low-income workers. It would increase benefits for surviving spouses and allow family caregivers to earn Social Security credits, which count toward future retirement benefits when caregiving keeps them out of the paid workforce.
“The Big Idea”
Since 2023, Sen. Bill Cassidy (R-LA) has proposed the “Big Idea,” which would create a new investment fund separate from the existing Social Security Trust Fund. The federal government would borrow $1.5 trillion by issuing Treasury bonds and deposit the money into the new fund, which would invest it in stocks, bonds, and other assets that could produce higher returns than the Treasury bonds held by the current trust fund.
The money would remain invested for approximately 75 years. Eventually, the fund’s returns would help supplement payroll tax revenue and cover most of Social Security’s shortfall. Supporters of this proposal argue that under this option, there would be no need to reduce benefits for current retirees or those approaching retirement.
What this means for you and me.
For retirees living on fixed incomes, a benefit cut could make it harder to afford necessities like housing, groceries, prescription drugs, and utility bills.
There is some good news: Congress still has time to prevent the automatic cuts projected for 2032, but every potential solution involves tradeoffs. Depending on the approach, some Americans could pay higher taxes, benefits could be reduced or grow more slowly, or Social Security’s finances could face new investment risks.
The decisions lawmakers make will shape the program for current retirees, today’s workers, and future generations. Everyday Americans should be a part of the conversation around how to address Social Security’s insolvency and keep the program financially stable long term.
Want to better understand the program and the choices facing Congress? Check out our Social Security policy primer and sign up for our newsletter to get our latest policy explainers.
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