Social Security faces 22% benefit cut in 2032. What Congress is doing now

A new bipartisan bill is trying to stop a Social Security shortfall projected for 2032. The PROMISE Act would not raise benefits, cut benefits, or increase taxes. Instead, it would create a formal process for Congress to consider a long-term solution. The Social Security Advisory Board would develop recommendations for restoring solvency. Lawmakers would then be required to consider and vote on a plan. The trustees say the Retirement Trust Fund could reach insolvency in 2032. If Congress does nothing, payroll taxes would still be collected, but benefits would not be fully covered. Trustees project the program would be able to pay about 78% of scheduled retirement benefits. That could mean an automatic reduction of roughly 22% for beneficiaries. For 2026, beneficiaries already received a 2.8% cost-of-living adjustment. The average monthly retirement benefit increased by roughly $56, and 2027 COLA projections are between 3.6% and 3.8%.