Social Security Fix Proposed by Sens. Elizabeth Warren and Bernie Moreno The Social Security fund could face insolvency as early as 2032, according to a report released earlier this month by the program’s trustees. The analysis, which cited declining birth rates, reduced immigration, and the retirement of Baby Boomers, warned that the program’s old-age and disability funds would exhaust their resources unless Congress intervenes. A separate projection from the same report suggested combining the two funds could push insolvency to 2034. This marks a shorter timeline than previous estimates, which had projected insolvency by 2033 or 2034. In response to the looming crisis, Senators Elizabeth Warren (D-Mass.) and Bernie Moreno (R-Ohio) proposed a bipartisan solution in an opinion piece published in the New York Times. Their plan calls for removing the current cap on income subject to the Social Security payroll tax. Under the existing system, the 12.4% payroll tax applies only to earnings up to $184,500 annually, with income above that threshold exempt from taxation. The proposal would extend the tax to all income levels, potentially generating $3.4 trillion in additional revenue over the next decade. This change could address more than half of the program’s projected funding gap, according to an analysis by the nonpartisan Peterson Institute. The lawmakers argued that the current structure disproportionately benefits high earners, as most Americans earn below the cap. “Since the vast majority of Americans make less than that, most people are paying Social Security taxes on 100 percent of their earnings while the highest earners are paying on only part of theirs,” Warren and Moreno wrote.#social_security #urban_institute #senator_elizabeth_warren #senator_bernard_moreno #peterson_institute
Social Security Administration Is Shedding Workers Faster Than Ever—How That Could Affect Retirees The Social Security Administration (SSA) has cut more than 8,000 workers since January 2025, marking the largest one-year staffing reduction in its history, according to an analysis by the Center on Budget and Policy Priorities (CBPP). This brings the agency’s workforce to its smallest size since 1967, a period when it served fewer beneficiaries and operated without the Supplemental Security Income program. The cuts have raised alarms among advocates for seniors, who rely on Social Security checks to cover about 40% of their retirement expenses. The agency’s staffing reductions have disproportionately affected customer-facing roles, with nearly half of the losses tied to field-office visits and 800-number calls. Over 3,800 staff members have been eliminated from these positions, while 800-number operations have also seen significant cuts. Despite these reductions, the SSA has claimed that service quality has improved, citing metrics such as shorter call wait times and reduced backlogs. However, critics argue that the agency’s digital-first strategy has created new challenges for retirees who lack access to technology or digital literacy. The impact of these cuts has been felt across all 50 states, with some regions experiencing sharper declines. New Mexico, Hawaii, and the District of Columbia each lost over 21% of their SSA workforce between January 2025 and April 2026. Field offices in 42 states and Washington, D.C., saw staff reductions exceeding 10% during this period. The CBPP report highlights that these cuts have disrupted access to critical services, including in-person appointments and case resolution, which remain vital for many beneficiaries.#social_security_administration #center_on_budget_and_policy_priorities #kathleen_romig #shannon_benton #urban_institute
