A bipartisan group of senators has introduced the Protecting Retirement Opportunities and Maintaining Income Security for Everyone (PROMISE) Act, a legislative proposal designed to address the projected solvency shortfall for Social Security.
The proposal comes after the latest Social Security Board of Trustees’ annual report indicated that the program's retirement trust fund is expected to face a funding gap in 2032. This projection is one year earlier than previously estimated.
The PROMISE Act seeks to compel Congress to confront the program's long-term financial challenges. It proposes the creation of an independent, bipartisan advisory committee tasked with developing recommendations for Congress. The legislation mandates an up-or-down vote on a solvency plan that would secure the program's finances for at least 50 years.
Senators Dick Durbin (D-Illinois), Tim Kaine (D-Virginia), Angus King (I-Maine), Bill Cassidy (R-Louisiana), John Cornyn (R-Texas), and Thom Tillis (R-North Carolina) are backing the bill. Durbin stated that delaying action will only make addressing the shortfall more difficult.
Social Security's financial challenges are attributed to factors including lower birth rates, reduced immigration, and decreased trust fund revenue stemming from past fiscal decisions, according to the Board of Trustees' report. The projected shortfall indicates a partial funding gap, not a complete collapse of the system, meaning benefits would likely continue, albeit at reduced levels, even after the trust fund is depleted.
Historically, addressing Social Security's solvency has been politically challenging. Proposals to alter the program often face opposition, with traditional partisan divides seeing Republicans skeptical of tax increases and Democrats resistant to changes in eligibility age. The last significant reform occurred approximately 40 years ago when the eligibility age was raised from 65 to 67.
Previous attempts to create commissions to tackle Social Security and Medicare solvency have faced obstacles, including lobbying efforts against them. Lawmakers have frequently postponed difficult decisions regarding the program's financial future.