Final July Social Security payments arrive Wednesday as Congress weighs reform

The government will distribute the final round of Social Security payments for July on Wednesday as lawmakers consider a bill that would address the program’s projected funding shortfall.

To be eligible for retirement benefits, Americans must be at least 62 years old and have earned at least 40 Social Security credits – equal to about 10 years of work – by paying Social Security taxes. Some spouses, survivors and individuals with disabilities also qualify.

This week marks the third and final round of July payments, which are scheduled for the second, third and fourth Wednesday of each month. Payment weeks are determined by birth date:

• Second Wednesday: Birthdays on the 1st–10th

• Third Wednesday: Birthdays on the 11th–20th

• Fourth Wednesday: Birthdays on the 21st–31st

When will the Social Security shortfall take effect?

The Social Security retirement trust fund is projected to face a funding shortfall in 2032, according to the annual Board of Trustees report released Tuesday. That is one year earlier than projected in last year’s report.

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Medicare’s hospital insurance trust fund is projected to face a funding shortfall in 2033, unchanged from last year’s projection.

This year’s Social Security payments increased by 2.8%, an average of more than $56 a month, to reflect the higher cost of living.

The Board of Trustees attributed the accelerated depletion date to lower projected birth rates, reduced immigration and lower projected revenue following the tax and spending bill President Donald Trump signed last summer.

Beginning in 2032, the retirement trust fund would no longer be able to pay full scheduled benefits if Congress takes no action. Instead, continuing tax revenue would allow benefits to continue, but at reduced levels.

Social Security’s combined trust funds, which pay retirement, survivor and disability benefits, are projected to be unable to pay full scheduled benefits beginning in 2034. At that point, continuing revenue would cover approximately 83% of scheduled benefits.

What legislation is Congress considering?

Lawmakers on Tuesday proposed the Protecting Retirement Opportunities and Maintaining Income Security for Everyone, or Promise Act, which would establish a process requiring Congress to vote on legislation addressing Social Security’s long-term financing.

Sen. John Cornyn introduced the bipartisan Promise Act on July 14 along with five other senators.

The bill would require the Social Security Advisory Board to submit a “base bill” designed to extend the program’s solvency and establish procedures for Congress to consider that legislation, according to a release from the Committee for a Responsible Federal Budget.

The legislation would require lawmakers to address Social Security’s financial outlook for at least the next 50 years.

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This article originally published at Final July Social Security payments arrive Wednesday as Congress weighs reform.