Social Security and Medicare Lock-Box Act
Sponsored By: Representative Walberg
Introduced
Summary
Creates protected surplus accounts for Social Security and Medicare Part A. The bill would require the Treasury to transfer each year’s trust-fund surplus into those accounts, bar the Managing Trustee from investing those balances in anything other than U.S. obligations until Congress authorizes other investment vehicles, and create a commission to study alternative investments.
Show full summary
- Social Security and Medicare trust funds: Annual surpluses would be moved into new "Surplus Protection Accounts" inside each trust fund, and the balances would not be available for investment by the Managing Trustee.
- Treasury / Managing Trustee: Transfers would begin for fiscal years after 2025 and would be made based on the Managing Trustee's annual estimates with later adjustments for prior over- or under-estimates.
- Investment Commission: A nine-member executive-branch commission of investment experts would study non-U.S.-obligation investment options and must submit recommendations by October 1, 2025.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Protect Social Security surplus funds
This bill would create a protected account inside the Social Security trust fund to hold each year’s surplus, starting with fiscal year 2026. The Managing Trustee would move the surplus—Social Security payroll and self‑employment taxes plus certain income tax on benefits, minus retirement and survivors checks and other allowed payments—into this account. Transfers could be based on estimates and then corrected later. Money in this account would not be invested. That freeze would lift starting with the first fiscal year after Congress authorizes another investment option.
Protect Medicare Part A surplus funds
This bill would create a protected account inside Medicare Part A to hold each year’s surplus, starting with fiscal year 2026. The surplus would equal hospital insurance payroll and self‑employment taxes, minus Part A benefits and other allowed payments. The Managing Trustee would move that amount each year, using estimates that can be corrected later. Money in this account would not be invested. That freeze would lift starting with the first fiscal year after Congress authorizes another investment option.
Study new investments for trust funds
This bill would set up a short‑term commission to study non‑Treasury investments for the Social Security and Medicare Part A trust funds. The commission would report to the President and Congress by October 1, 2025, and then end 90 days later. Members would meet monthly and must have investment and pension experience. Non‑government members would be paid at the daily Level IV rate and have travel costs covered.
Sponsors & CoSponsors
Sponsor
Walberg
MI • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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