Congress Advances Social Security Fairness Act

The U.S. House of Representatives has approved the Social Security Fairness Act, which aims to repeal the Windfall Elimination Provision and the Government Pension Offset, potentially benefiting 2.5 million retirees, particularly public sector employees like teachers and firefighters. Although the bill has bipartisan support, there is uncertainty about whether the Senate will act in time, with concerns about the Social Security program facing a funding shortfall and possible cuts to benefits by 2035. Additionally, the 2025 cost-of-living adjustment (COLA) for Social Security benefits is set at 2.5%, translating to modest increases for retirees, albeit offset by rising Medicare premiums. Republican leaders are pushing for reforms to Social Security, which has raised fears among seniors about potential benefit reductions. Meanwhile, a proposal to extend payroll taxes on high earners has garnered significant bipartisan support and could address a substantial portion of the funding shortfall. The current legislative environment remains uncertain as Congress grapples with the future of Social Security and its funding mechanisms.