Two Bipartisan Plans to Fix Social Security
Two new bipartisan proposals to shore up Social Security are getting attention: one would lift the cap on wages subject to the payroll tax, the other would borrow $1.5 trillion to invest in the markets. Neither is law. Here’s what each would do — and the criticism each faces.
Two new bipartisan ideas for shoring up Social Security are drawing attention in Washington. One, from Sens. Bernie Moreno (R-OH) and Elizabeth Warren (D-MA), would lift the cap on the wages subject to Social Security’s payroll tax. The other, from Sens. Bill Cassidy (R-LA) and Tim Kaine (D-VA), would borrow $1.5 trillion and invest it in the markets. Neither is law — both are early-stage proposals — but they show the kinds of fixes lawmakers are weighing.
Why now
Social Security’s trust funds are projected to run short within roughly the next decade. If nothing changes, the program could only pay a portion of scheduled benefits once the reserves are gone — which is why solvency proposals are surfacing. (Our explainer on the trust-fund shortfall covers the timeline.)
Proposal 1: Lift the payroll-tax cap (Moreno–Warren)
In 2026, workers pay Social Security tax (6.2%, matched by employers) only on the first $184,500 of wages. Earnings above that aren’t taxed for Social Security — so a high earner stops paying into the system partway through the year.
In a joint New York Times op-ed, Moreno and Warren proposed eliminating or raising that cap so higher earners keep paying. They estimate it could raise more than $3 trillion over 10 years and extend solvency for decades. Independent analysts generally agree lifting the cap closes a large share of the gap — though estimates vary on exactly how much, and on whether higher earners should also get larger benefits in return.
- Supporters say: it asks the highest earners to contribute on more of their pay, and polls show cross-party support.
- Critics say: it’s effectively a large tax increase on top earners and small businesses, and may not, by itself, fully close the long-term gap.
Proposal 2: A $1.5 trillion investment fund (Cassidy–Kaine)
Sen. Bill Cassidy — who lost his primary to a Trump-backed challenger and leaves office in January 2027 — has teamed with Sen. Tim Kaine on a very different approach. The government would borrow about $300 billion a year for five years (roughly $1.5 trillion) and place it in a sovereign-wealth-style fund invested in stocks and other assets. Left untouched for 75 years, Cassidy projects the returns could eventually cover an estimated 60–65% of Social Security’s long-term shortfall.
So far it’s a policy outline, not a bill — no legislative text has been introduced.
- Supporters say: investment returns could ease the shortfall without directly cutting benefits or raising payroll taxes now.
- Critics say: it relies on borrowed money and uncertain market returns. An analysis by Boston College’s Center for Retirement Research called it “unlikely to work,” warning the government could still be deep in debt in year 75.
What it means for you
Nothing changes today — current benefits are still paid in full, and both ideas are early proposals that would need to pass Congress. They’re worth watching as a signal of where reform talks are heading. We track developments as they move, without partisan spin. For the bigger picture, see our overview of solvency options and the bipartisan commission.
This article is for general education and is not financial or political advice. Both proposals are described based on public statements and reporting; neither is enacted law. You can track legislation at congress.gov and review Social Security’s official financial projections at ssa.gov.
Frequently asked questions
- Are either of these proposals now law?
- No. Both are early-stage proposals. Lifting the payroll-tax cap (Moreno–Warren) and the $1.5 trillion investment fund (Cassidy–Kaine) would each need to pass Congress and be signed into law. As of mid-2026, neither has.
- What is the Social Security payroll-tax cap?
- It’s the maximum amount of annual wages subject to Social Security tax — $184,500 in 2026. Earnings above that aren’t taxed for Social Security. Lifting or removing the cap would have higher earners pay the tax on more (or all) of their wages.
- How would the $1.5 trillion investment fund work?
- Under the Cassidy–Kaine outline, the government would borrow about $300 billion a year for five years and invest it in markets for 75 years, aiming for returns that could eventually cover an estimated 60–65% of Social Security’s shortfall. Critics warn it depends on borrowed money and uncertain returns.
- Will my benefits be cut?
- Not by these proposals, and not today. Current benefits are paid in full. These plans aim to improve the program’s long-term finances; the broader concern is that without some fix, the trust funds are projected to run short within about a decade.
Reference: SocialSecurityNews