The 6 New Social Security Changes Already In Congress

This year has brought much news about Social Security and difficult times for the federal agency, particularly in the previous months when the SSA had to deal with harsh criticism from beneficiaries owing to their overpayment tactics. Nancy Altman, president of Social Security Works, recently said that Social Security is on the ballot. She believes that if President Biden is reelected, progress toward decreasing the Social Security deficit will be made. 

However, there will be little development under the next Trump government. According to Altman, the Democratic Party supports increasing benefits without cutting them and returning Social Security to long-term actuarial balance. Democrats have introduced several bills; two of the most prominent are the Social Security 2100 Act and the Social Security Expansion Act. Meanwhile, Republicans may vote against a bill that boosts Social Security’s designated funding, but they may not support it since it is popular with their citizens but unpopular with their billionaire supporters. 

The bill will pass the House with or without their support, but it will be filibustered in the Senate, making it unlikely to become law next year. However, a bill to restore Social Security’s balance by raising designated revenue could become law in 2027. Trump and his fellow Republicans oppose all revenue increases, leaving only benefit cutbacks, which might trigger automatic cuts.

The 6 new Social Security changes to save Social Security 

Though few policy analysts anticipate significant changes to Social Security in the lead-up to or immediately following the November elections, some ideas have surfaced, such as investing the trust fund assets, eliminating the tax incentives associated with 401(k) plans, and using the ensuing revenue savings to support the program. The Republican Study Committee—which includes around 80% of House Republicans—called for the Social Security eligibility age to be linked to life expectancy in its fiscal 2025 budget proposal in late March. Please read below the 6 new Social Security changes that are already in Congress:

The Fiscal Commission Act of 2023

In mid-January, the House Budget Committee passed legislation to create a fiscal commission to handle the national debt and make “fast track” reforms to Social Security, including potential cuts. The bill was sent to the House floor with 26 sponsors. This legislation was introduced in September 2023 and is sponsored by Rep. Bill Huizenga and R-Mich. 

The “You earned, you keep it Act”

The bill, introduced on January 26th and co-sponsored by 11 Democrats, repeals federal taxation of Social Security benefits beginning in 2025, allowing the Social Security Administration to continue making payments on time and in full until 2054, 20 years longer than the current projection of 2034, according to an analysis by the Office of the Chief Actuary.

House Budget Committee Fiscal 2025

The bill establishes a bipartisan fiscal commission to “fast-track” potential reforms to Social Security and other entitlement programs. The budget committee approved the measure in early March. Moreover, the Republican budget references the House Budget Committee’s Jan. 18 vote to forward H.R. 5779, the Fiscal Commission Act of 2023, which would establish a fiscal commission to handle the national debt.

Boosting Benefits and COLAs for Seniors Act

This legislation, presented on March 19th and co-sponsored by five lawmakers, would require the Social Security Administration to modify benefits for Americans aged 62 and up depending on the Consumer Price Index (CPI).

The Social Security Overpayment Fairness Act

The bill, which was introduced on May 7th and submitted to the House Ways and Means Committee, would give Social Security beneficiaries who get overpayment letters 120 days to react before clawbacks begin, up from 30 days now.

The Safeguarding Social Security and Medicare Act

The measure, presented on June 21, would require the United States Comptroller General to draft a plan to protect Social Security and Medicare benefits from the impacts of inflation. The bill has been referred to the Ways and Means Committee and the Committee on Energy and Commerce.