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2d ago

Cassidy and Kaine Propose $1.5 Trillion Parallel Trust to Fortify Social Security

The proposal calls for a $1.5 trillion upfront infusion into a diversified trust with TSP-style guardrails to safeguard full benefits past the program’s 2033 depletion date.

U.S. Senator Tim Kaine (D-VA) speaks at a press conference at the U.S. Capitol on April 02, 2025 in Washington, DC. U.S. Senator Bill Cassidy (R-LA) speaks to reporters at the U.S. Capitol on March 11, 2025 in Washington, DC.
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Overview

  • The Social Security Trustees project that the OASI trust fund will deplete by 2033, creating a $25 trillion financing gap over 75 years.
  • The proposal sets a $1.5 trillion upfront federal investment to seed a parallel, diversified trust that invests in stocks, bonds and other assets for higher returns.
  • During the trust’s 75-year growth period, the Treasury would temporarily cover benefit payments and then be reimbursed by the new fund.
  • Governance features modeled on the Thrift Savings Plan include a fiduciary duty, deterrence measures against raids and annual audited disclosures.
  • Lawmakers cite the National Railroad Retirement Investment Trust as a successful precedent and estimate the fund could reduce federal indebtedness by up to 20 percent.