Congress is running out of time to prevent a 22% cut in Social Security benefits, as the trust fund is projected to be depleted by 2032—one quarter earlier than expected. - The depletion is driven by lower birth rates, reduced immigration, and decreased revenue from the 2025 Republican tax bill.
- Medicare's hospital trust fund will also face shortfalls, covering only 89% of costs by 2033 without action. - Proposed solutions include raising the payroll tax cap, increasing the retirement age, and creating a bipartisan commission.
- Lawmakers face political hurdles as polls show public support for preserving benefits but opposition to tax increases or cuts.