This New Social Security Bill Would Force Congress To Finally Make Major Changes

Social Security's long-term funding challenges have been building for years, and Congress is still searching for a lasting solution. A new bipartisan bill would not raise taxes or reduce senior benefits on its own, but it could change how lawmakers tackle the issue by creating a process for developing and voting on a long-term solvency plan.

Here's what the proposal would do and why it's getting attention.

What the bill would actually do

The PROMISE Act would direct the Social Security Advisory Board to develop a plan that keeps the program fully funded for at least 50 years. As part of that work, the board would hold public listening sessions, write legislative recommendations, and submit them to Congress by mid-September 2026.

The Senate Finance Committee and House Ways and Means Committee would then have until early November to review the proposal. If either committee misses that deadline, the legislation would automatically move to the House or Senate floor for a vote. Passing the plan would require support from three-fifths of the Senate and a simple majority in the House.

The proposal also calls for a solvency review every 10 years. If another long-term funding gap is identified, the same process could begin again.

Why the bill is coming now

Social Security's retirement trust fund is projected to run out in late 2032. At that point, payroll taxes would continue to fund the program, covering about 78% of scheduled benefits. Without changes from Congress, monthly checks would be reduced by roughly 22% to match the money coming in.

Lawmakers have known about this timeline for years, yet no long-term solution has been passed. The PROMISE Act is designed to put a deadline on that process. The bill's sponsors say acting sooner would let any future changes phase in gradually, giving workers and retirees more time to prepare before new rules take effect.

Lawmakers have faced this challenge before

In 1983, Social Security was only months away from being unable to pay full benefits on time. Lawmakers responded with a bipartisan package based on recommendations from a commission led by Alan Greenspan, and President Reagan signed it into law that April.

The legislation:

• Gradually raised the full retirement age from 65 to 67
• Accelerated scheduled payroll tax increases
• Expanded Social Security coverage to most federal employees

Those changes kept the program paying full benefits for decades. Supporters of the PROMISE Act point to that experience as an example of why they want Congress to begin working on the next long-term solution before the program reaches another funding deadline.

What kind of changes Congress would eventually vote on

The PROMISE Act does not recommend a specific solution. If it becomes law, the advisory board and Congress would decide which changes to include in a long-term funding plan.

One option would require people earning more than $250,000 to pay Social Security payroll taxes on income above that amount. SSA estimates it would close about 65% of the long-term funding shortfall. Another approach would increase the payroll tax rate, asking workers and employers to contribute a little more over time.

Lawmakers could also consider changes to future benefits, such as raising the full retirement age or slowing annual cost-of-living adjustments. Someone claiming at 67 after the full retirement age increased to 69 would receive about 13% less each month than under current law, a change that would weigh most heavily on people in physically demanding jobs and those who rely on Social Security for most of their income.

Most analysts expect any realistic package to combine revenue increases with some benefit adjustments, phased in over time. Recent reform proposals have generally protected people who are already receiving benefits or are close to retirement, so current retirees would be less likely to see direct changes to their checks.

What you can do while Congress debates

The PROMISE Act would not change your Social Security benefits, and any future changes would require separate legislation. That gives you time to review your plans using the rules that are in place today.

A good place to start is checking your earnings record and estimated benefit through your my Social Security account. You can also compare your retirement budget using your full estimated benefit and a benefit that's about 20% lower. If that smaller amount creates a gap, you'll have a better idea of how much additional income or savings you may want to include in your retirement plan.

Bottom line

Most Social Security reform proposals focus on a specific policy change. The PROMISE Act focuses on the process, creating a path for Congress to consider and vote on a long-term solvency plan.

The bill is still in its early stages, so current law remains the same. Even so, it offers a clearer picture of how Congress could approach future reforms, making it a proposal worth following as you work toward your retirement goals.