Lawmakers Have a Plan to Force Congress to Act on Social Security

A newly introduced act seeks to prompt Congress to act to preserve the Social Security benefits for seniors that millions of retirees depend on. A bipartisan group of senators introduced the Protecting Retirement Opportunities and Maintaining Income Security for Everyone (PROMISE) Act to establish a process for Social Security reform in light of the program's approaching financial shortfall.

With more than 71 million Americans relying on Social Security benefits every month and time to act before the Social Security trust fund runs out, the PROMISE Act brings more public attention to this essential issue.

What the PROMISE Act does and doesn't do

The PROMISE Act doesn't implement any immediate changes to the Social Security program. It doesn't raise taxes, reduce benefits, change eligibility, or otherwise alter the program.

If passed, the Act would create a process to prompt a reluctant Congress to vote on a solvency plan. It would require the Social Security Advisory Board to gather public input and then submit a base bill to Congress designed to restore at least 50 years of solvency to the Social Security program. The Majority leaders of the Senate and House would introduce the base bill, and other members of Congress would be able to introduce the bill if the leaders failed to act.

From there, the Senate Finance Committee and House Ways and Means Committees would review the bill, and then it would be brought to the House and Senate floors for a vote. A final bill would need 60 Senate votes to pass.

Backing for the PROMISE Act

The PROMISE Act has been introduced by a bipartisan Senate group including Dick Dubin, Bill Cassidy, John Cornyn, Tim Kaine, Angus King, and Thom Tillis.

It's not the only bill created to prompt Congress to take action on the Social Security issue. House Representatives Tom Cole and Tom Suozzi introduced the Bipartisan Social Security Commission Act. The Act seeks to create a commission responsible for developing legislation to ensure the Social Security program's long-term solvency. The House Act takes a similar "force action" approach in an attempt to require Congress to identify and implement a solution.

Why Congress needs to act

The 2026 Trustees of the Social Security and Medicare trust funds report projects that the Old-Age and Survivors Insurance (OASI) trust fund may be depleted during the fourth quarter of 2032. That projection comes one quarter earlier than the Trustees projected last year.

If the OASI trust fund becomes depleted, the program's income from payroll taxes would only be able to pay 78% of the total scheduled benefits. Benefits reductions of about 22% would be automatically applied, leaving Americans who depend on those monthly benefits to get by with less unless Congress takes action to ensure the program's solvency.

Legislators have proposed numerous potential solutions, but at this time, Congress has yet to enact any of them.

Altering the payroll tax cap

Senators Elizabeth Warren and Bernie Sanders have called for Congress to raise the cap on the Social Security payroll tax. In 2026, only the first $184,500 of an individual's earnings are subject to the Social Security tax. That means that high earners only pay taxes on a portion of their income.

Raising or eliminating that tax cap might substantially increase the program's tax revenue. However, financial experts have noted that eliminating the cap wouldn't be enough to ensure Social Security's solvency on its own.

Raising the full retirement age

Raising the full retirement age is often presented as one potential solution to the program's insolvency. Under current law, Americans may claim reduced Social Security benefits at age 62, but the full retirement age at which individuals may claim their full benefits is age 67.

Since Americans are living longer, legislators have suggested gradually raising the full retirement age to 70, delaying some Americans from claiming benefits and saving the program money. However, changing the retirement age would reduce the lifetime benefits that Americans receive, and waiting to claim benefits until age 70 may be impractical for older adults with physically demanding jobs.

Means-testing benefits

Some legislators suggest means-testing benefits and paying wealthier retirees lower benefit amounts based on their reduced need for the money. Doing so might save the program money while ensuring higher benefit amounts go to the retirees who financially need them the most.

This idea is a controversial one, as it would change the Social Security program's structure. Social Security has been an earned-benefit program, but means-testing would transform it into more of a welfare system.

Adjusting the COLA formula

The cost-of-living adjustment is an annual calculation applied to ensure benefits keep up with inflation. Modifying the formula to reduce the adjustment may help save the program money each year.

Reducing benefits may increase financial strain for recipients, especially given the current high inflation impacting the economy.

Raising the payroll tax rate

Legislators have discussed raising the Social Security payroll tax rate to generate more revenue for the program. Doing so would tax workers more, but it might also mean that Congress doesn't have to cut Social Security benefits for recipients.

Bottom line

The PROMISE Act faces a difficult path toward approval in Congress, and similar efforts have stalled before. Some analysts call the PROMISE Act redundant, since Congress is already responsible for forcing action and addressing Social Security's insolvency.

No benefit changes take effect now, but this is an important issue to monitor as it evolves. In the meantime, be sure to factor the 2032 timeline into your longer-term retirement plan so you're prepared for any changes that might occur.