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Bipartisan lawmakers vow to shore up Social Security

The system is in danger of running out of funds earlier than expected

Updated:

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

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Key Insights

  • A bipartisan group in Congress has launched a renewed push to preserve Social Security amid warnings of looming insolvency.
  • Proposals include raising the payroll tax cap, tweaking benefits for high earners, and adjusting the retirement age.
  • Polls show strong voter demand for bipartisan action to protect Social Security for future generations.

After the Social Security Administration recently warned that the Social Security Trust Fund would run out of money a year earlier than projected, a few members of Congress are taking action. In a rare display of cross-party unity, a group of Democratic and Republican lawmakers in Congress is working behind the scenes to craft a compromise that could preserve Social Security for decades to come. 

The push comes amid mounting pressure from actuaries, economists, and the public, as projections show the Social Security trust fund could become insolvent by 2033 unless decisive action is taken.

Similar action was taken in 1983 when lawmakers on both sides of the aisle crafted legislation to slightly increase the Social Security and Medicare tax. The extra revenue propped up the system for decades.

A cross-party consensus

Sen. Tim Kaine (D-Va.) and Sen. Bill Cassidy (R-La.), along with Representatives John Larson (D-Conn.) and Brian Fitzpatrick (R-Pa.), are among the key figures leading efforts to forge consensus. 

While acknowledging deep ideological divides, the group is focused on a shared objective: ensuring future retirees do not face benefit cuts or program instability.

“We can no longer afford to treat Social Security as a third rail,” Cassidy said in a recent floor speech. “This is about protecting the financial futures of working Americans, regardless of political affiliation.”

The lawmakers are exploring a range of reform options to shore up the program’s finances, including:

  • Raising or eliminating the payroll tax cap, which currently exempts wages above $168,600 from the Social Security tax.
  • Progressive benefit adjustments, where higher earners might see slower benefit growth to preserve full payments for low- and middle-income retirees.
  • Gradually increasing the retirement age, potentially indexing it to longevity while including hardship exemptions for labor-intensive professions.
  • Dedicated revenue streams, such as reallocating portions of investment income or introducing a small financial transaction tax earmarked for Social Security.

What’s not being considered

Privatization and benefit cuts across the board have been rejected outright by both parties in the talks, signaling a clear preference for maintaining the program’s core structure.

A new Pew Research poll released this week found that 83% of Americans believe Congress should prioritize securing Social Security, including majorities across party lines. Voter anxiety is especially high among Gen X and millennial workers, who fear they may receive less than they contribute.

Still, the path to legislation won’t be easy. Some conservative members oppose tax increases in any form, while progressive lawmakers warn against retirement age hikes that disproportionately affect lower-income workers with shorter life expectancies.

A 2026 deadline?

Analysts say 2026 may be the most realistic window for major reform, as presidential election-year politics in 2024 and the current lame-duck session limit legislative bandwidth. Several members of the bipartisan working group are quietly drafting a framework they hope to unveil early next year, giving time for public debate and fiscal scoring.