Social Security May Get an Overhaul Under New Senate Bill: Here’s What to Know

The Senate this week will attempt to pass legislation designed to provide full Social Security benefits to millions of American retirees.

Senators are due to schedule a test vote on the bill on Wednesday, Senate Majority Leader Chuck Schumer (D-N.Y.) has said. The measure will need 60 votes or more to clear the procedure before moving to its final passage.

In a floor address on Monday, Schumer said that “we will vote,” on the Social Security bill, “and every Senator will choose.”

“Where are you? Do you stand on the side of public retirees who deserve their benefits, or bungle this golden opportunity by blocking this bill?” Schumer asked.

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The majority leader urged his fellow Democrats to vote in favor of the bill. While a number of Republicans back the measure, some have indicated they will try to block it.

More Strain Predicted

The bill would add more strain on the Social Security Trust funds, which were already estimated to be unable to pay out full benefits beginning in 2035. It would add an estimated $195 billion to federal deficits over 10 years, according to the Congressional Budget Office.

The nonpartisan Committee for a Responsible Federal Budget also estimates that if passed, the policy would hasten the Social Security program’s insolvency date by about half a year as well as reduce lifetime Social Security benefits by an additional $25,000 for a typical dual-income couple retiring in 2033.

Sen. Rand Paul (R-Ky.) has said he opposes the measure, saying it would cause the Social Security program to become bankrupt more quickly. Paul said he wants the Senate to approve his amendment to raise the retirement age.

Other Republicans, such as Sen. Mike Lee (R-Utah) and Sen. Ron Johnson (R-Wis.) have warned that the bill would add more to the national deficit.

“I understand the need to address some inequities that have arisen in this area,“ Lee told The Hill. ”I don’t think there’s any member of our conference who doesn’t think that we need to do some repair, but I think we’re kidding ourselves and mistreating the American people if we blow a $200 billion hole in it and give no thought as how to fix that.”

Johnson, meanwhile, told the outlet that the bill is “way too broad” and would provide benefits to people who aren’t being harmed.

Some Republicans Want It Passed

Some Republicans have pushed Schumer to bring it up for a vote.

Sen. Bill Cassidy (R-La.) said last month that the current federal limitations “penalize families across the country who worked a public service job for part of their career with a separate pension.”

“We’re talking about police officers, firefighters, teachers, and other public employees who are punished for serving their communities,” Cassidy said.

He predicted the bill would pass.

Incoming Majority Leader Sen. John Thune (R-S.D.) said at a press conference on Tuesday that cost is a concern.

“There was a lot of conversation around today, as you might expect, and I think in the end it’s going to come down to individual members are going to make their own decisions about where they want to come down on that,” Thune said. “Obviously I am concerned about the long-term solvency of Social Security and that is an issue I think we need to address.”

What Happens Next

If passed by the Senate, the bill would go to President Joe Biden.

Separately, the Social Security Administration last month said that retirees will receive a 2.5 percent increase in their Social Security checks in 2025. That translates into an average of roughly $50 per month more starting in January, according to the agency.

The Associated Press contributed to this report.