Current Policy Debates

Immediately prior to his Inauguration, President Barack Obama called in press interviews for a new Social Security and Medicare “bargain” with the American people. While the Administration has focused in its first months on economic recovery and health reform, Obama has repeatedly pledged to address Social Security’s long-term funding challenges. Reaching agreement on these issues is likely to pose great political challenges. During the campaign, Obama and Senator John McCain debated competing approaches to addressing Social Security underfunding, with significant differences between their proposed policies.

Much Social Security legislation (pdf) introduced in the current (111th) Congress and most recent past (110th) would increase system costs—typically to address the needs of select populations, like disabled workers with terminal illnesses, government pensioners, or current beneficiaries who will not be receiving COLAs next year—without addressing the long-term fiscal imbalance.

Urban Institute researchers will continue to monitor Social Security proposals from legislators and others in the months ahead.

Policy Options

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