Senators Bill Cassidy, R-La., and Angus King, I-Maine, introduced a bipartisan bill on Wednesday intended to address the projected insolvency of the Social Security trust fund. The proposal suggests the creation of a "sovereign wealth fund" separate from the existing program to generate investment returns that would cover future funding gaps.
According to a projected timeline from the Social Security Administration, the program’s trust funds are expected to become unable to pay full benefits by 2033 or 2034 without legislative action. The Cassidy-King plan would utilize $1.5 trillion in borrowed funds to invest in the U.S. economy, with the goal of returning the proceeds to the Social Security system over a 75-year period.
The bill does not include cuts to current benefits but proposes changes to how future payouts are calculated for high-income earners. The sponsors stated that the investment strategy is designed to stabilize the program without increasing payroll taxes for the majority of Americans. The legislation now awaits review by the Senate Finance Committee.