AARP Strongly Objects to a New Social Security Proposal in Congress

The Social Security program faces approaching insolvency of its trust fund, which could result in reduced benefits for seniors as soon as 2032. In an effort to fast-track the process of identifying and implementing a solution, a bipartisan group of senators introduced a proposed legislative process. But AARP, which advocates on senior issues, has spoken out and says it opposes the proposed bill and favors a different approach to preserving the Social Security program.

The prospect of Social Security's insolvency is concerning for anyone dependent on benefits. Here's how the bill and AARP's desired alternative might affect Social Security recipients and retirees.

Understanding the bipartisan PROMISE Act

On July 14, a bipartisan group of senators introduced the Protecting Retirement Opportunities and Maintaining Income Security for Everyone (PROMISE) Act. According to the Social Security Trustees' 2026 annual report, the Social Security trust fund may become depleted in 2032. At that point, the Social Security program may only be able to cover 78% of benefits, resulting in a 22% reduction in benefits unless Congress acts and implements a solution.

There's been conversation about Social Security's looming insolvency, but Congress hasn't yet identified a solution. The PROMISE Act was created because, as time passes, the options available to Congress to preserve benefits and limit tax hikes are reduced.

If passed, the Act would task the independent Social Security Advisory Board with drafting a solvency plan. The plan would be moved to the House and Senate floors with tight deadlines and limited amendments. If committees fail to act, the plan could be automatically considered in an effort to prompt Congress to act and to speed up the process of implementing a solution.

AARP's core objection to the PROMISE Act

AARP has objected to the PROMISE Act, emphasizing that a process as consequential as altering Social Security should be fully transparent.

"We strongly object to fast-tracking Social Security changes through Congress, as your bill would do," wrote Nancy LeaMond, AARP Executive Vice President and Chief Advocacy and Engagement Officer, in a July 21 letter. "Strengthening Social Security should happen through regular order, in full public view, with openness and transparency – rather than through a process that limits the type of amendments and sets arbitrary procedural deadlines to short-circuit the debate."

LeaMond highlighted the importance of an open debate regarding the program's future. "Changes to a program that provides the foundation of retirement security for millions of Americans should be debated openly, transparently, deliberatively, and through regular order— not through an accelerated process that limits scrutiny of proposals that could cut Social Security," she wrote.

AARP identifies accountability issues

LeaMond also identified potential accountability issues that might arise from the PROMISE Act. She noted that under the plan, legislators wouldn't be able to amend other legislators' plans once those plans were filed.

"The bill would then set up fast-tracked floor debates in the lame-duck session of Congress, just after the November elections, when departing Members are completely unaccountable to voters," LeaMond wrote.

Additional commissions opposed by AARP

AARP opposes other commissions proposed to address the Social Security issue. A House bill sponsored by Representative Tom Cole and Tom Suozzi would create a 13-member commission to provide recommendations and legislation to address Social Security's finances. A second proposal would create a fiscal commission to both reduce the national debt and to bolster trust funds for Social Security, Medicare, and national highways.

AARP's argument is based on the fact that Social Security receives revenue from payroll taxes and is self-financed. Since the program doesn't contribute to the national debt, AARP argues that it should not be impacted by other budget debates.

What PROMISE Act supporters say

The PROMISE Act has many supporters, including the Bipartisan Policy Center and the Committee for a Responsible Federal Budget.

Supporters argue that the fast-track process is needed to force action on the looming issue. According to AARP, more than 71 million people receive Social Security payments.

AARP agrees that the issue needs to be solved and that benefits should not be cut for Americans who paid into the Social Security program their entire lives. The overall disagreement arises over just how Congress should fix Social Security and how much public input may be considered before Congress arrives at a final solution.

Bottom line

There's lots of discussion surrounding Social Security and the potential solutions, though at this point, Congress hasn't moved forward with any one proposal or solution. Be sure to watch which reform path gains traction, since the mechanism used determines how much public input and debate any benefit or tax change may receive before becoming law.

If you're concerned about potential changes to your Social Security benefits, this is a good time to evaluate your budget with a lower benefit figure. Doing so may help you understand how well your retirement plan holds up if benefits were to be reduced.