Social Security's retirement trust fund is projected to deplete its reserves in late 2032, which could lead to a 22% cut in scheduled retirement and survivor benefits if Congress does not intervene.
Republicans and Democrats have introduced bipartisan proposals aimed at creating a long-term fix, including the PROMISE Act and a plan to set up a Social Security solvency commission.
Possible solutions include higher payroll taxes, adjustments to retirement benefits and new revenue sources, but lawmakers have not agreed on major changes.
With only a few years left before Social Security's retirement trust fund is expected to run dry, Washington lawmakers are facing mounting pressure to confront a financial problem that could affect tens of millions of retirees.
Several bipartisan initiatives are moving through Congress to help avoid a steep benefit reduction. For now, though, most of them focus on creating a process for reaching an agreement rather than immediately changing taxes or benefits.
The issue gained urgency after Social Security's trustees released their latest annual report, projecting that the Old-Age and Survivors Insurance Trust Fund would exhaust its reserves in the fourth quarter of 2032.
At that point, payroll taxes and other dedicated revenue would cover only about 78% of scheduled benefits.
That does not mean Social Security would end. Workers would still contribute, and benefits would still be paid. But without congressional action, the program would not have enough money to pay full scheduled benefits to everyone.
The trustees say that if Congress merged the retirement and disability trust funds, the combined reserves would last until 2034, when incoming revenue would cover roughly 83% of scheduled benefits. Such a merger would require legislation.
A bipartisan plan designed to push Congress into action
One of the most notable recent ideas is the Protecting Retirement Opportunities and Maintaining Income Security for Everyone Act, better known as the PROMISE Act.
Introduced by a bipartisan group of senators, including Republican Bill Cassidy of Louisiana and Democrat Dick Durbin of Illinois, the bill is meant to break the political stalemate over Social Security reform.
Instead of laying out specific benefit cuts or tax increases, the measure would instruct the bipartisan Social Security Advisory Board to craft a proposal that could keep the program solvent for at least 50 years.
That proposal would then go to Congress, where lawmakers could debate it, amend it and weigh competing plans.
The bill also calls for periodic reviews intended to keep another funding crisis from building up again.
"Congress has known about this challenge for more than a decade, but it has not taken up these politically challenging issues," Durbin said when unveiling the proposal.
The PROMISE Act has bipartisan support, but it is not a funding fix on its own. Even if it becomes law, Congress would still need to pass legislation to address the shortfall.
A separate House measure would establish a commission
Another proposal comes from Republican Rep. Tom Cole of Oklahoma and Democratic Rep. Tom Suozzi of New York.
Their Bipartisan Social Security Commission Act of 2026, introduced in June, would create a commission tasked with developing recommendations to restore Social Security's long-term financial stability.
The goal is to get lawmakers to agree on a package of reforms instead of forcing them to bargain over each politically difficult change one by one.
The bill, H.R. 9187, was sent to the House Ways and Means and Rules committees.
Like the PROMISE Act, it is aimed at building a framework for action rather than delivering an immediate answer to the funding problem.
Other lawmakers are pushing revenue increases
Not every proposal centers on commissions or negotiation rules.
Some lawmakers want more direct changes to Social Security's financing.
Democratic Sen. Elizabeth Warren of Massachusetts and Republican Sen. Bernie Moreno of Ohio have backed removing the cap on earnings subject to Social Security payroll taxes.
Under current law, workers stop paying Social Security payroll taxes once their annual income passes a certain limit. Eliminating that cap would require higher earners to contribute more.
Other proposals would apply Social Security taxes to earnings above $400,000 while keeping some income below that threshold exempt.
Supporters say collecting more revenue from wealthier Americans could greatly reduce the projected shortfall without cutting benefits for current retirees.
Opponents argue that large payroll tax hikes could discourage investment and hiring, and that more revenue alone may still not solve the program's long-term financing issues.
Meanwhile, Democratic Rep. John Larson of Connecticut has reintroduced the Social Security 2100 Act, which combines benefit enhancements with changes intended to strengthen the program's finances.
The bill, H.R. 9519, was introduced in June, with a companion Senate measure introduced by Sen. Richard Blumenthal in July. Neither measure has reached a final vote.
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