The Trump administration has made several changes to the Social Security program in the past year. The list includes cutting administrative expenses, increasing the overpayment recovery rate, and implementing a new telecommunications platform meant to reduce fraud and improve customer service.
Additionally, President Trump signed the One, Big, Beautiful Bill Act (OBBBA) into law on July 4. The legislation added a new senior deduction that offsets income tax on Social Security for some beneficiaries aged 65 and older. But the OBBBA did not fulfill Trump’s promise to end taxes on Social Security.
Some lawmakers in Washington are pushing to reshape key aspects of Social Security, including taxes on benefits and how annual cost-of-living adjustments (COLAs) are calculated—changes that could significantly affect retirees.
Although President Trump previously claimed he ended federal income taxes on Social Security, current law only provides a temporary senior deduction that applies to limited income levels and expires in 2028. As a result, bipartisan lawmakers have introduced new bills, such as the You Earned It, You Keep It Act and the Senior Citizens Tax Elimination Act, which would permanently eliminate federal taxes on Social Security benefits. Supporters argue this would boost retirement income, but critics warn it would accelerate depletion of the already strained Social Security Trust Fund, currently projected to run short by 2034.
Lawmakers are also targeting how COLAs are calculated. Currently based on the CPI-W, which reflects working-age spending habits, critics say it fails to capture seniors’ real costs. Proposed legislation would switch to the CPI-E, tailored to older Americans’ expenses, potentially increasing benefits modestly each year. However, higher COLAs would also place additional pressure on the trust fund.
Together, these proposals highlight a growing tension between enhancing retiree benefits and preserving Social Security’s long-term solvency.
