Sen. Bill Cassidy (R-La.), who lost Louisiana’s GOP primary last month, is making a final push for a $1.5 trillion Social Security reform proposal as the retirement trust fund moves closer to projected depletion in 2032.
In a CNBC interview published on Tuesday, Cassidy said the plan would create a separate investment fund to invest in equities and help cover Social Security’s long-term liabilities.
Cassidy also renewed his push in a post on X late Tuesday, warning that delays would lead to higher taxes and deeper benefit cuts for retirees.
“The longer Congress does nothing, the larger the tax increase workers will face and the deeper the benefit reductions retirees will endure,” Cassidy wrote.
“I have a plan to save Social Security. Congress cannot wait any longer. Let’s get it done.”
Funding Crisis Deepens
Social Security’s latest trustees report projects the Old-Age and Survivors Insurance trust fund will be able to pay full scheduled benefits only until the fourth quarter of 2032, one quarter earlier than last year’s estimate.
If lawmakers fail to act, the fund would be able to pay only 78% of scheduled benefits after that.
The growing funding gap has raised concerns across Washington. Recent projections suggest retirees could face benefit cuts of roughly 22% to 24%, translating to around a $500 monthly reduction for the average beneficiary. More than 71 million Americans currently rely on Social Security benefits.
Earlier this month, Sen. Elizabeth Warren (D-Mass.) warned that raising the retirement age by two years could effectively cut benefits by 17% to 35%, arguing the move would disproportionately hurt lower-income workers and those in physically demanding jobs.
Cassidy’s Big Idea
Cassidy’s proposal seeks to avoid the usual political battle over raising taxes or cutting benefits.
Instead, the plan calls for investing $1.5 trillion in a separate fund over five years. Cassidy said the money would be invested in equities and could grow over 65 to 70 years to cover about 60% to 65% of Social Security’s unfunded liabilities.
The Louisiana senator has said the proposal is modeled after the National Railroad Retirement Investment Fund, created in 2001 to allow railroad pension assets to be invested in private securities.
Cassidy said all market risk would be borne by the fund, while beneficiaries would still receive promised benefits.
Cassidy’s office did not immediately respond to Benzinga’s request for comment.
Political Resistance Remains
The proposal faces political and economic challenges.
Cassidy has also faced political headwinds of his own. He lost Louisiana’s GOP primary last month to candidates backed by Donald Trump, after years of tension stemming in part from Cassidy’s vote to convict Trump following the Jan. 6 Capitol attack.
Still, Cassidy said he plans to continue pushing the proposal through hearings and legislation before leaving office in January 2027. If the measure does not advance this Congress, he said he hopes lawmakers in the next Congress will carry the effort forward.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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