Social Security Update: 4 Proposals Could Change Benefits for Millions
Summary
Congress faces pressure to fix Social Security's financial problems, with four major proposals waiting for review. Social Security will run out of reserves by the early 2030s, meaning benefit cuts could happen unless lawmakers act soon.Key Facts
- About 71 million Americans receive Social Security benefits, including retirement, survivors, and disability payments.
- The average monthly benefit in 2026 was roughly $1,940, and retired workers received about $2,086.
- Social Security is mainly funded by payroll taxes: workers and employers each pay 6.2% on wages up to $184,500.
- In 2025, Social Security collected $1.45 trillion but spent $1.61 trillion, using reserves to cover the difference.
- The trust fund reserves for retirement and survivors’ benefits are expected to run out by the fourth quarter of 2032.
- After reserves run out, taxes alone would cover about 78% of benefits, risking significant cuts.
- Four proposals are in Congress: two suggest tax or benefit changes, and two aim to create bipartisan processes to find long-term fixes.
- The PROMISE Act, a bipartisan Senate bill, would set up a faster method for recommending and passing Social Security solvency plans without directly changing taxes or benefits now.
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