Social Security Guarantee Act of 2025
Summary
The Social Security Guarantee Act of 2025 aims to ensure that individuals receive their full Social Security benefits with accurate annual cost-of-living adjustments. It mandates the Secretary of the Treasury to issue benefit guarantee certificates to eligible individuals. These certificates represent a legally enforceable guarantee of the monthly benefit amount and its annual adjustment based on cost-of-living increases.
Expected Effects
The primary effect would be to provide legal assurance to Social Security beneficiaries regarding their benefits. This guarantee would be considered budget authority in advance of appropriations acts. It obligates the federal government to provide the promised benefits.
Potential Benefits
- Provides a legally enforceable guarantee of Social Security benefits.
- Ensures accurate annual cost-of-living adjustments.
- Offers peace of mind to current and future beneficiaries.
- Potentially strengthens public trust in the Social Security system.
- Guarantees benefits as budget authority in advance of appropriations.
Most Benefited Areas:
Potential Disadvantages
- Could strain the federal budget if cost-of-living adjustments significantly increase.
- May create inflexibility in adjusting Social Security benefits in response to unforeseen economic circumstances.
- Potential legal challenges if the government fails to meet the guarantee.
- The Act does not address the long-term solvency issues of Social Security.
- It might create a false sense of security if the underlying system remains underfunded.
Most Disadvantaged Areas:
Constitutional Alignment
The Act aligns with the Constitution's general welfare clause (Preamble). Congress has the power to collect taxes and provide for the general welfare of the United States. Article I, Section 8, Clause 1 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).