Social Security Update: Republican Proposes Bill to Consider Major Changes

A Republican lawmaker has introduced new legislation aimed at reshaping the debate over Social Security's future.

Representative Gus Bilirakis reintroduced the Commission on Sustaining Medicare and Social Security Act on Tuesday as the Social Security Administration nears a funding shortfall as early as 2033. Instead of imposing immediate benefit cuts or tax changes, the proposal would create a commission to recommend sweeping reforms to prevent the program from running short of funds.

Social Security is a primary source of income for millions, providing at least half of their income for a large share of retirees. It also prevents millions of older Americans from falling into poverty. As a result, even small changes, such as shifting the retirement age or cost-of-living adjustments (COLAs), could have significant real-world impacts on retirees and families.

“Medicare and Social Security represent a sacred promise to America’s seniors, disabled individuals, and working families who have paid into these programs throughout their lives,” Bilirakis said in a statement.

“We have a moral responsibility to preserve and strengthen these vital programs, not only for today’s beneficiaries but for future generations as well. The longer we wait to address these challenges, the fewer options we will have and the more difficult the solutions will become.”

What To Know

Bilirakis reintroduced the Commission on Sustaining Medicare and Social Security Act this year. If passed, the law would establish an independent, bipartisan panel focused on long-term solvency.

Key elements of the plan include:

• Creation of a bipartisan commission composed of experts charged with analyzing Social Security and Medicare finances
• The panel would propose solutions lawmakers could consider or vote on
• The commission would assess whether cost-of-living adjustments accurately reflect seniors' expenses

Bilirakis explained the proposal as a way to break political gridlock, arguing that reforms are needed before the trust fund shortfall forces automatic benefit reductions.

“By bringing together experts from across the political spectrum, we can remove partisan politics from the conversation and focus on practical, responsible solutions," Bilirakis said. "We have done this before. In the early 1980s, President Ronald Reagan and Speaker Tip O’Neill worked across party lines to preserve Social Security through a similar commission process. Their efforts succeeded because they put the American people ahead of politics. I believe we can do so again."

How It Would Operate

The commission model echoes a previous approach used in the early 1980s, when a bipartisan panel led to major Social Security reforms under Reagan and O'Neill.

Under this structure, experts, not lawmakers, would initially develop policy options, and then the commission would deliver formal recommendations to Congress. Lawmakers would then decide whether to adopt, modify, or reject those proposals. But some finance experts question whether it would prevent funding problems further down the line.

"We’ve already done this. Reagan’s team did it in 1983 with the Greenspan Commission and it bought us 40 years. Except, we’re now 40 years later and Congress still hasn’t agreed to anything structural," Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.

"They just cut Medicaid while we’re ‘studying' Medicare solutions. That’s Washington in a nutshell. You can’t fix a problem while you’re actively making it worse. "

Why Lawmakers Say Changes Are Needed

Social Security's trust fund is projected to face significant insolvency risks in the early 2030s. If no action is taken, incoming payroll taxes would cover only about 75 to 80 percent of the promised benefits.

That would trigger automatic benefit cuts of roughly 20 percent for millions of Americans as Americans increasingly live longer and lower birth rates continue to reduce the worker-to-retiree ratio.

"Social Security’s trust fund depletes within the next decade without changes. Medicare faces aging population pressure and rising healthcare costs. This is happening," Ryan said.

"If you’re 55 right now, you’re the risk group. Your full retirement age is already 67. Your benefits are already compressed from what someone born in 1945 gets."

Does the Bill Have Support?

At this stage, the legislation appears to be an early-stage proposal rather than a bill with broad backing. However, the commission concept is explicitly designed to attract bipartisan participation.

"That makes the proposal politically easier to support than a specific tax increase, benefit cut, or eligibility change, but it also means the bill's passing is uncertain because Congress often likes studying entitlement reform extensively before voting on the difficult fixes that follow," Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.

Other Proposals on the Table

The proposal from Bilirakis does not specify new policies that would impact Social Security or Medicare, but many ideas are already being debated in Washington.

Common Republican-Leaning Proposals:

• Raising the full retirement age (often to 69)
• Slowing benefit growth for higher earners
• Using a different inflation index for COLAs

Common Democratic-Leaning Proposals:

• Increasing taxes on higher earners
• Raising or eliminating the payroll tax cap
• Expanding benefits for certain groups

Bipartisan Ideas:

• Combining tax increases and benefit adjustments
• Improving minimum benefits for low-income retirees
• Modifying immigration or workforce policies to boost payroll tax revenue

"This is largely performative. It is no secret what will save Social Security and Medicare-it must be some mix of increased funding and decreased benefits,” Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek. “In the real world, that means shifting the federal budget, raising income taxes or taxes on benefits, and reducing benefits in any number of ways, such as pushing back Full Retirement Age, means testing, or changing the benefit formula.”

"None of these inevitable solutions are particularly popular with voters, so lawmakers are simply kicking the can down the road by creating commissions to discuss what is already known,” Powers said.

What Happens Next

The bill will need to gain co-sponsors and committee consideration before advancing. Even if passed, the commission would take time to study the programs and develop recommendations for Congress.

"I don’t see it gaining much traction under the current administration," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. "We’re already seeing efforts to increase oversight and prior authorization requirements within Medicare, along with workforce reductions at the Social Security Administration. Given that backdrop, a commission-based approach to expanding or reinforcing these programs appears unlikely."

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This story was originally published June 2, 2026 at 2:55 PM.