Social security crisis: 63 million Americans face $500 monthly cuts if Congress fails to act

A new bipartisan proposal to reform Social Security is gaining traction as lawmakers race to address the program’s looming insolvency crisis.

According to Senator Bill Cassidy (R-LA), lawmakers must pass legislation before the retirement trust fund runs out in 2032, when automatic cuts will exceed 20%.

Senator Cassidy, who will soon leave the Senate after losing his primary, has partnered with Senator Dick Durbin (D-IL) to pass the PROMISE Act, a bill that would allow lawmakers to begin considering reforms to the Social Security system. Cassidy was speaking at Semafor's Future of Health Forum, noting that the latest trustees' report has "sharpened people's minds that we really have a problem."

This sense of urgency is being echoed by voters. A recent survey by the Peterson Foundation among 2,500 registered voters revealed that more than 8 out of 10 of them would vote for a candidate who promises to save them from automatic cuts. 

In swing states such as Georgia, Michigan, North Carolina, Ohio, and Texas, millions of recipients stand to lose an average of $487 to $523 per month should Congress not act.

Among the solutions being talked about are increasing the cap on the payroll tax, putting a limit on the annual benefits paid to those earning above a certain income level, and the establishment of an investment trust fund. 

But experts warn that timing is crucial in order to get something done. “Needs to happen soon or it will simply be kicked to the next administration,” stated Kevin Thompson of 9i Capital Group.