New Commission Proposed To Make Major Social Security Changes

For many Americans, monthly Social Security payments are a key part of their retirement plan, but with Social Security projected to run out of funds, those senior benefits might be at risk. The Bipartisan Social Security Commission Act of 2026 was introduced in June 2026 to form a committee that will create a solvency solution for Social Security. However, the bill has not become legislation, so no committee has yet formed.

Here's what to know about what a potential commission might mean for the Social Security program and your financial fitness heading into retirement.

What the commission might look like

The commission would identify changes and solutions for some of the country's major programs, including Social Security. "That would be bipartisan, a small group of Senate and House members that would meet for one year and come up with significant proposals that we would vote up or down on after a year, similar to the Simpson-Bowles," said Darin LaHood, one of the co-sponsors of the Commission Act.

The strategy of allowing Congress to vote the proposal up or down may reduce the chance that Congress amends or weakens the proposal during the voting process.

Following the Simpson-Bowles model

The Simpson-Bowles reference refers to the Simpson-Bowles Commission, which was a bipartisan panel. President Obama created the commission in 2010 with the goal of identifying solutions to reduce the national debt by approximately $4 trillion. Ultimately, the commission's final proposal did not receive enough backing to present it to Congress for a vote.

The projected issues with Social Security

One of the major pressing issues that the commission could tackle is Social Security. According to the Congressional Budget Office's (CBO's) 2026 Budget and Economic Outlook, Social Security's Old Age and Survivor's Insurance trust fund is projected to be insolvent in 2032. That 2032 date is a year earlier than previous predictions.

Since current law prohibits the Social Security program from distributing more in benefits than what the program has in revenues and balances, when the Old Age and Survivor's fund runs out of money, Social Security benefits would automatically be cut by 22%. In 2025, CBO estimated the fund's insolvency would trigger a 24% cut, but new predictions signify a 22% cut.

Factors that could speed up Social Security insolvency

The predictions about when the Social Security program is set to run out of money keep shifting because they're affected by several factors that could cause the program to run out of funds sooner. Since citizens pay into Social Security's funding pool based on a percentage of their taxable pay, prolonged economic weakness could reduce incomes and reduce the money contributed to the program.

Social Security's benefits are sometimes increased by cost-of-living adjustments based on inflation during the third quarter of the previous year. If inflation continues to rise, the program may need to pay out larger benefit amounts, draining the funds faster.

Why increased lifespan is an issue for Social Security

A shrinking U.S. workforce may also mean that there's less money contributed to the program. As more of the population ages and retires and fewer people emigrate to the U.S., there are fewer workers contributing. Additionally, as people live longer, they're collecting benefits for longer, making it more difficult to financially sustain the program.

LaHood addressed the challenges that come with paying benefits to recipients who are now living significantly longer. "Remember, we set retirement ages at Social Security at 61 or 65 or 67 when people only lived to be 70 years old," he said. "People now live well into their eighties and nineties. Government hasn't appropriately adjusted."

Potential solutions to Social Security funding

Congress hasn't suggested any specific solutions to addressing the Social Security funding issue, but several solutions are often proposed during discussions about the program. It's possible to raise the age at which individuals are allowed to begin collecting Social Security benefits, and taxing earners who make more at a higher rate might also generate more funds for the program. It's also possible that legislators might vote to reduce Social Security benefits to help save the program money.

The potential impact of doing nothing

If the government doesn't take action and identify a solution, the impacts could be widespread. As early as 2032, the approximately 75 million Social Security recipients may have their benefits cut by 22%. An individual receiving $1,546 in benefits a month could have their benefits reduced to $1,205 per month. A family receiving $3,270 per month could have their benefits reduced to $2,550. Considering how difficult it could be to live on full Social Security benefits today, such cuts could be a huge financial challenge.

Skepticism about the commission

There's some skepticism around the commission, and some critics worry that the commission could be used to quickly implement benefit cuts. Negotiations that occur within the commission wouldn't necessarily be public, and that reduces overall transparency.

There's also concern about whether the commission could create a proposal that would receive enough bipartisan support to make it through Congress. Although the Simpson-Bowles Commission was a bipartisan commission, its proposal didn't receive enough support to present it to Congress, so it's possible that this commission could face a similar challenge.

Bottom line

As of September 2026, no legislation is moving forward yet. It's possible that formal legislation is going to be introduced to create the commission, or legislators might introduce their own proposals to address the Social Security issues and not create a commission. However, the insolvency clock is running, and legislators need to work quickly to identify a solution to this looming issue.

While Social Security benefits could provide an important retirement boost, the program's future is uncertain. This is a good time to connect with a financial advisor and make sure that you're on track to meet your retirement goals.

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