An Early 2026 Update on Congressional Activity on Social Security’s Insolvency Problem
Despite the popular notion that congressional attention to Social Security’s looming insolvency should be a top priority, not much has been happening on that front so far. Yes, there are a number of competing priorities, not the least of which are the political brinkmanship associated with the partial government shutdown, the fraud investigations underway in multiple states, and the ongoing immigration enforcement activities, but the clock continues to wind down to a 2032 full trust fund depletion.
A 2025 4,000-participant survey by Public First indicated that more than 8 in 10 American adults see the problem as a priority, while 80% of respondents expressed concern that Congress’s inaction will allow the program to default on promised benefits. Overall, the survey results indicate a general sense of nervousness about the future of this venerable senior benefit program.
Recent Legislative Activity Affecting Social Security
As explained in a Nasdaq.com post by The Motley Fool’s Dana George, the only material Social Security legislation recently enacted was the so-called “Social Security Fairness Act,” a change that worsened the program’s financial trajectory. In 2026, several initiatives are underway, including the Social Security Expansion Act of 2025-2026 and the Save Our Seniors Act, both in Committee awaiting action.
What the Future Holds
Current projections are that Social Security’s trust fund reserves will be fully depleted by 2032. At that point, Social Security benefits will be required to move to a cash basis, under which benefits paid must equal revenues received. The reality of this situation puts program beneficiaries at risk of severe consequences in about six years. As noted earlier, this shift to cash-in/cash-out is projected to result in a substantial, across-the-board reduction in benefits, estimated at 20% or more.
Despite the potential for catastrophe, Congress can restore Social Security Solvency if lawmakers act swiftly, much like they did in 1983 when faced with a similar dilemma. It is imperative that corrective action be undertaken as far in advance of full trust fund depletion as possible to minimize disruption. While immediate action is critical, so too is adopting the best long-term solution.
The Social Security Administration has evaluated hundreds of proposals in recent years, and a steady stream of ideas has emerged to modify the program for the 21st-century economy. It’s anybody’s guess on the timeline for congressional action, but most analysts understand that this is not a self-correcting problem, and action is needed sooner rather than later.