Republican Senator Bill Cassidy accused Treasury Secretary Janet Yellen of lying during a hearing on the future of Social Security, but behind-the-scenes talks between lawmakers and the White House have been ongoing for months. Senators are discussing possible solutions to address underfunding in Social Security, including creating a second trust fund that would allow money to be invested in stocks. Democrats may also rally around Representative John Larson’s bill which aims to increase benefits across-the-board with an emphasis on helping those receiving the least. Any proposal would need support from both Democrats and Republicans.
Republican Senator Bill Cassidy accused Treasury Secretary Janet Yellen of lying during a Senate Finance Committee hearing on the future of Social Security. The accusation overshadowed ongoing bipartisan talks between lawmakers and the White House to address underfunding in the program, which has 66 million beneficiaries and is projected to run out of funds within a decade. Senators Cassidy and Angus King have been leading efforts for several months to create a second trust fund that would allow investment in stocks rather than traditional Treasury securities with lower returns. However, recent bank failures may give lawmakers pause about investing Social Security funds in stocks.
The senators’ plan is not the only one being devised; Democrats may rally around Representative John Larson’s bill that would increase benefits across-the-board while helping those receiving less than 125% of poverty level income retire without falling into poverty. Any proposal will need support from both Democrats who control Congress’ upper house and Republicans who hold sway over its lower chamber.
Several House Republicans are pushing for an outside commission similar to one used successfully in 1983 as part of fast-track approval process reforms but critics argue it could lead to benefit cuts without accountability.