Social Security Update: 4 Proposals Could Change Benefits for Millions
Several Social Security proposals are waiting for lawmakers when Congress returns from recess, as pressure grows to address the program’s finances and future benefits.
Tens of millions of Americans receive Social Security, including roughly 57.6 million retirement beneficiaries, 5.8 million people receiving survivor benefits and nearly 8 million receiving disability benefits. As of July 2026, the average monthly payment across the program was about $1,940, while retired workers received an average of roughly $2,086.
But despite its overwhelming significance to the everyday American, lawmakers face an increasingly urgent question over how to finance those benefits in the decades ahead. Four proposals currently sitting in Congress take different approaches, ranging from raising taxes on higher earners to establishing bipartisan processes intended to force lawmakers to agree on a long-term solution.
The Social Security Shortfall
Social Security is primarily financed through payroll taxes paid by workers and employers. In 2026, employees and employers each pay a 6.2 percent Social Security tax on wages up to $184,500, while self-employed workers generally pay the combined 12.4 percent rate.
But the money coming into the system is no longer enough to cover all of its costs. Social Security collected about $1.45 trillion in 2025 while spending about $1.61 trillion, with the difference made up from its trust fund reserves. Those combined reserves fell from about $2.72 trillion at the beginning of 2025 to $2.56 trillion by the end of the year.
The latest Social Security trustees report, published earlier this year, has found that the Old-Age and Survivors Insurance Trust Fund (OASI), which finances retirement and survivor benefits, will exhaust its reserves in the fourth quarter of 2032. At that point, continuing tax revenue would be sufficient to pay about 78 percent of scheduled benefits if Congress did nothing. Looking at the combined retirement and disability funds on a theoretical combined basis, reserves would be depleted in 2034 and about 83 percent of scheduled benefits could be paid, equivalent to a roughly 17 percent funding shortfall.
Social Security would therefore not simply disappear when its reserves run out, but beneficiaries could face substantial cuts to benefits unless lawmakers act.
The four bills on the table offer lawmakers very different starting points when the Social Security debate returns: two lay out specific tax and benefit expansions, while the other two seek to create a bipartisan process through which Congress could negotiate a solvency deal.
PROMISE Act
The Protecting Retirement Opportunities and Maintaining Income Security for Everyone Act of 2026, or PROMISE Act, is a piece of bipartisan Senate legislation introduced on July 14 by Democratic Senator Dick Durbin of Illinois. Its backers span both parties and include Republican Senators Bill Cassidy, Thom Tillis and John Cornyn, Democratic Senators Tim Kaine and Chris Coons, independent Senator Angus King and Republican Senator Alan Armstrong. It has been referred to the Senate Finance Committee.
The bill would not itself raise Social Security taxes, reduce benefits or change the retirement age. Instead, it would establish an expedited process intended to produce and pass a separate Social Security solvency package.
Under the proposal, the existing Social Security Advisory Board would develop recommendations and legislative language capable of ensuring that Social Security can pay 100 percent of scheduled benefits for at least 50 years. The board would also be required to seek public input through listening sessions. Congress would then consider legislation based on those recommendations under special procedures, while lawmakers could offer alternative packages so long as they also met the 50-year solvency requirement.
The bill also envisions repeating that process in future decades if projections again showed that Social Security could not pay full scheduled benefits for the following 50 years.
As written, the measure calls for recommendations by September 14 and legislation to be introduced by September 17, but the bill remains in committee and the Senate is not due to resume regular business until September 14. That means lawmakers would have to move rapidly or revise the proposed deadlines if the bill advances.
Bipartisan Social Security Commission Act of 2026
Another proposal would attempt to break the long-running political stalemate by putting negotiations in the hands of a specially created bipartisan commission.
The Bipartisan Social Security Commission Act of 2026 was introduced on June 8 by Republican Representative Tom Cole of Oklahoma, with Democratic Representative Tom Suozzi of New York as a co-sponsor. It has been referred to the House Ways and Means and Rules committees.
The legislation would establish a 13-member Commission on Long-Term Social Security Solvency, with members appointed by the president and congressional leaders from both parties. The leaders of the House Ways and Means and Senate Finance committees would also have representation, while some appointees would be required to come from outside Congress.
Within one year of its first meeting, the commission would have to recommend legislation designed to keep both Social Security’s retirement and disability trust funds solvent for at least 75 years. Any package would need support from at least nine of the commission’s 13 members, effectively requiring some degree of bipartisan agreement.
The bill does not prescribe whether that eventual plan should raise taxes, alter benefits, change eligibility rules or use some combination of policies. The commission would be required to introduce its recommendations, then committees would consider them on an expedited timetable and the package would receive fast-track treatment without amendments on the House or Senate floor.
Strengthening Social Security Act of 2026
The Strengthening Social Security Act of 2026 works differently from the PROMISE Act and the Bipartisan Social Security Commission Act. Instead of creating bodies to figure out ways to solve the funding issues, it would make direct changes to both Social Security’s funding structure.
The bill was introduced on June 11 by Democratic Representative Linda Sánchez of California, with initial cosponsors including Representatives Jan Schakowsky of Illinois, Chellie Pingree of Maine, Stephen Lynch of Massachusetts and Steve Cohen of Tennessee. It has been referred to the House Ways and Means and Education and Workforce committees.
One of its largest changes would be the gradual elimination of Social Security’s taxable earnings cap, which is currently $184,500 for 2026 and increases every year. Beginning in 2028, a portion of earnings above the normal annual cap would become subject to the payroll tax, increasing each year until, by 2032, earnings above the cap would be fully taxable for Social Security purposes.
The bill would also make Social Security’s benefit formula more generous by replacing a larger share of a worker’s lower earnings, which would increase monthly payments, particularly for lower- and middle-income retirees.
As well as this, it would require Social Security cost-of-living adjustments (COLA) to use a price index specifically intended to measure inflation experienced by elderly consumers, rather than the current Consumer Price Index Urban Wage Earners and Clerical Workers (CPI-W) benchmark.
Social Security Expansion Act
The Social Security Expansion Act was introduced by independent Vermont Senator Bernie Sanders in February 2025, alongside a House version sponsored by Democratic Representative Val Hoyle of Oregon. Democratic Senator Elizabeth Warren of Massachusetts and Representative Jan Schakowsky of Illinois were also among the lawmakers backing the legislation. The Senate bill remains with the Senate Finance Committee.
Like the Strengthening Social Security Act, it would also directly address the funding issues without creating a special commission. Unlike proposals focused primarily on preserving existing scheduled benefits, the bill would also both raise revenue and expand what Social Security pays out.
The bill would change how benefits are calculated, increasing the share of lower earnings replaced by the program and adjusting the income thresholds used to determine a worker’s benefit. It would also create a new minimum benefit for some low-income workers and, like the Strengthening Social Security Act, change the formula used for annual COLA changes so that it better reflects spending patterns of older Americans.
It would also make some additional changes too: full-time students whose parent is deceased or receiving disability benefits would also be able to receive Social Security or railroad retirement child benefits until age 22.
To help finance the changes, the legislation would extend Social Security payroll taxes to wages, salaries and self-employment income above $250,000. It would also increase the net investment income tax and apply it to certain active business income. It would also combine the Old-Age and Survivors Insurance Trust Fund, which pays retirement and survivor benefits, and the Disability Insurance Trust Fund into a single Social Security Trust Fund.
Sanders’ office said the legislation would increase Social Security benefits by about $2,400 a year and keep the program fully financed for 75 years, while leaving households earning $250,000 or less unaffected by its payroll tax increase.
What Happens Next
None of the four measures has passed either chamber of Congress, and lawmakers are currently away from Washington for the August district and state work period. The Senate is holding only pro forma sessions during much of the recess and is scheduled to reconvene for regular business on September 14. House lawmakers are also spending the August work period in their districts.
That means significant movement on the proposals is unlikely before lawmakers return in September. There is also no guarantee that any of the four bills will receive a floor vote.
But the underlying problem will remain: the trustees’ projections put the retirement trust fund’s depletion roughly six years away, and the longer Congress waits, the larger the eventual tax increases, benefit changes or other reforms needed to restore long-term solvency become.
Contact Newsweek editors on this story: John Fitzpatrick and James Debens