Senators Push for Big Change to Social Security to Save the Program

Senators are working to protect Social Security benefits, a major part of millions of Americans' retirement plans. 

On June 23, 2026, Sens. Elizabeth Warren, D-Mass., and Bernie Moreno, R-Ohio, published a joint op-ed calling for lifting the Social Security payroll tax cap. The senators said they were "working on legislation" to implement their proposal. As of October 2026, legislation reflecting the Warren-Moreno proposal has not been introduced.

The op-ed proposed lifting the Social Security payroll tax cap as a potential solution. Lifting the cap would be a significant change for the program, and it's one potential solution to avoiding an automatic benefits reduction.

The Social Security insolvency problem

The 2026 Social Security Trustees report projects that the Social Security trust fund may be depleted by the fourth quarter of 2032. That new projection suggests the fund may run out one quarter earlier than the 2025 projection.

If Congress doesn't act before the trust fund is depleted, Social Security would only be able to pay about 78% of scheduled benefits — a reduction of roughly 22%. For the average retired worker, that could mean roughly $459 less per month based on the Social Security Administration's August 2026 average monthly benefit of $2,087.52.

While benefits wouldn't end, the reduction could significantly affect vulnerable Americans, including those who depend entirely on Social Security benefits to live.

How the payroll tax cap works

Payroll taxes help partially fund the Social Security program, but there's a cap on the amount of annual income that's taxed. For 2026, a 12.4% tax is only applied to income up to $184,500. Income beyond $184,500 is exempt from Social Security taxes, even if individuals make significantly more.

Because of the tax cap, low- and mid-earners must pay taxes on their entire income, but high earners only pay taxes on a portion of their income.

"This is a no-brainer," the Senators write. "The wealthiest Americans, who have benefited the most from America's opportunities, should contribute the same percentage of their income as a factory worker in Chillicothe, Ohio, or a teacher in Worcester, Mass."

The push to eliminate the tax cap

The op-ed presents eliminating the payroll tax cap to increase revenue for the Social Security program, arguing that the tax cap is structurally unfair. "Why should a middle-class nurse pay a larger share of her paycheck than a wealthy corporate lawyer?" the op-ed poses. "This is doubly unfair in an economy in which top earners' wages, over time, have pulled far ahead of those of the average worker."

The op-ed argues that eliminating the tax cap may help preserve Social Security's structure in which workers contribute to the program from their paychecks, helping ensure those same workers may later retire.

What eliminating the tax cap might do

According to an analysis performed by the Peter G. Peterson Foundation, eliminating the tax cap might raise an additional $3.4 trillion in revenue for the program from 2026 through 2035. The change might close 48% of the program's 75-year funding gap.

The idea has gained bipartisan support, and a 2025 Bipartisan Policy Center poll found that 65% of Democrats and 62% of Republicans support the idea of lifting the tax cap.

The argument against eliminating the tax cap

Critics of the idea, including the Tax Foundation, argue that lifting the cap would increase taxes on high earners and wouldn't be enough to fully restore long-term solvency to the program.

Changing the tax cap structure would also alter the program's earned-benefit design, in that it would tax income without providing a corresponding benefit increase for those taxpayers.

Other potential solutions for Social Security

Lawmakers have proposed numerous other solutions to address Social Security's insolvency. Republicans have proposed raising the retirement age, prompting Americans to delay their retirement because of today's longer life expectancy.

Lawmakers could also potentially reduce Social Security benefits for workers earning higher incomes, since such workers are more likely to have their own savings and retirement investments to support them during retirement.

It's also possible for lawmakers to explore implementing Social Security taxes on investment income, like capital gains and dividends, which currently isn't subject to a Social Security tax.

Bottom line

Meanwhile, Reps. Tom Cole, R-Okla., and Thomas Suozzi, D-N.Y., introduced H.R. 9187, the Bipartisan Social Security Commission Act of 2026, on June 8. The bill would establish a commission to address Social Security's long-term solvency. It was referred to the House Ways and Means and Rules committees and had not advanced beyond committee referral as of late September.

Keep in mind that the cuts to Social Security reflect what might happen if lawmakers don't implement a solution, and the legislative activity surrounding the program is encouraging. Even so, it's a good idea to revisit your retirement budget and recalculate it based on a reduced Social Security benefit to check up on your retirement readiness.

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