Cassidy Pushes $1.5 Trillion Social Security Plan as 2032 Trust Fund Depletion Nears
Updated
Updated · CNBC · Jun 23
Cassidy Pushes $1.5 Trillion Social Security Plan as 2032 Trust Fund Depletion Nears
1 articles · Updated · CNBC · Jun 23
Summary
Bill Cassidy says he will spend his final Senate months pressing a Social Security overhaul built around a $1.5 trillion investment fund financed over five years.
The push follows trustees' new warning that the retirement trust fund could run dry in the fourth quarter of 2032, leaving only 78% of scheduled benefits payable without congressional action.
Cassidy says the borrowed money would be invested separately from Social Security and could cover 60% to 65% of the program's unfunded liability over 65 to 70 years, without cutting promised benefits.
The proposal still faces political and policy hurdles: Social Security legislation needs 60 Senate votes, Trump has feuded with Cassidy, and researchers say the plan is unlikely to work without added tax hikes or benefit cuts.
Cassidy and retiring Sen. Dick Durbin are urging hearings and floor debate now, arguing delays will make any eventual fix more painful for the 71 million Americans who rely on the program.
If the new plan only covers 65% of the shortfall, what tough choices are being hidden to fix the rest?
Why is an investment strategy that saved one federal pension called a 'dangerous gamble' for Social Security?
The Looming 22% Social Security Cut: Evaluating the Cassidy-Kaine $26 Trillion Investment Proposal and Alternatives
Overview
Social Security is facing a major financial crisis, with its main trust fund projected to run out by 2032. If Congress does not act before then, all beneficiaries will see their payments automatically cut by 22 percent. Even after the trust fund is depleted, Social Security will still collect payroll taxes and continue paying benefits, but at a reduced level. This situation means that senators elected now will be in office when the program can no longer pay full benefits, highlighting the urgent need for legislative action to avoid painful cuts for millions of Americans.