Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1221

Introduced
2/11/25  

Caption

Social Security and Medicare Lock-Box Act This bill establishes (1) in the Federal Old-Age and Survivors Insurance Trust Fund, a Social Security Surplus Protection Account; and (2) in the Federal Hospital Insurance Trust Fund, a Medicare Surplus Protection Account. The Managing Trustee of each trust fund (in both cases, the Secretary of the Treasury) (1) must transfer the annual surplus of the trust fund to its respective account; and (2) may not invest the balance in the account until a law takes effect that authorizes, for amounts in the trust fund, an investment vehicle other than U.S. obligations. The bill establishes in the executive branch a commission to study the most effective vehicles for investment of the trust funds, other than investments in the form of U.S. obligations.

Impact

If enacted, HB1221 would result in significant alterations to how surplus funds within Social Security and Medicare are managed. The proposed Social Security Surplus Protection Account would ensure that any surplus is held securely and not invested in usual vehicles, thereby minimizing risk. Furthermore, the bill sets the stage for the creation of a Social Security and Medicare Part A Investment Commission tasked with evaluating and recommending alternative investment strategies beyond federal obligations, reflecting a proactive approach to future-proofing these entitlements amid changing economic conditions.

Summary

House Bill 1221, titled the 'Social Security and Medicare Lock-Box Act', proposes the establishment of dedicated surplus protection accounts within the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Hospital Insurance Trust Fund. The bill aims to safeguard any surplus generated from Social Security and Medicare revenues by preventing these funds from being directed towards investments in U.S. obligations until new legislative guidelines are created. This initiative seeks to secure the financial integrity of these crucial social programs against potential deficits and mismanagement, particularly in times of fiscal pressure.

Contention

There are concerns about the implications of halting investments of surplus funds in U.S. obligations. Critics may argue that this could limit the government's ability to leverage these funds for other impactful investments that could support economic growth or address immediate financial needs. Additionally, the bill's stipulation that funds will remain in a protective account might be viewed as a conservative approach that could potentially hinder flexibility in fund utilization, leading to debates on the balance between security and growth in public finance strategies.

Congress_id

119-HR-1221

Policy_area

Health

Introduced_date

2025-02-11

Companion Bills

No companion bills found.

Previously Filed As

US HB34

Assuring Medicare’s Promise Act of 2023 This bill increases net investment income tax revenues by applying such tax to the trade or business income of certain high income taxpayers and includes the increased tax revenues in the Federal Hospital Insurance Trust Fund.

US HB187

Default Prevention Act This bill requires the Department of the Treasury to continue borrowing to pay the principal and interest on obligations held by the public or the Social Security trust funds if the federal debt limit is reached. The bill also (1) exempts any obligations issued under this bill from the debt limit if the obligations would otherwise cause the limit to be exceeded, and (2) prohibits the obligations from being used to compensate Members of Congress.

US HB281

Bipartisan Social Security Commission Act of 2023 This bill establishes a temporary commission within the legislative branch to provide Congress with recommendations and proposed legislation to ensure the solvency of the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund (commonly referred to as the Social Security trust funds) for at least 75 years. The bill also sets out expedited procedures for the consideration of legislation proposed by the commission. The commission terminates within 60 days of providing its recommendations and proposed legislation.

US HB8131

Bureau of Prisons Inmate Trust Fund Accountability Act

US SB2300

A bill to require that information on spending associated with national emergencies be subject to the same reporting requirements as other Federal funds under the Federal Funding Accountability and Transparency Act of 2006, and for other purposes.

US SB5633

A bill to establish Medicare flex fund accounts and for other purposes.

US HB25

FairTax Act of 2023 This bill imposes a national sales tax on the use or consumption in the United States of taxable property or services in lieu of the current income taxes, payroll taxes, and estate and gift taxes. The rate of the sales tax will be 23% in 2025, with adjustments to the rate in subsequent years. There are exemptions from the tax for used and intangible property; for property or services purchased for business, export, or investment purposes; and for state government functions. Under the bill, family members who are lawful U.S. residents receive a monthly sales tax rebate (Family Consumption Allowance) based upon criteria related to family size and poverty guidelines. The states have the responsibility for administering, collecting, and remitting the sales tax to the Treasury. Tax revenues are to be allocated among (1) the general revenue, (2) the old-age and survivors insurance trust fund, (3) the disability insurance trust fund, (4) the hospital insurance trust fund, and (5) the federal supplementary medical insurance trust fund. No funding is authorized for the operations of the Internal Revenue Service after FY2027. Finally, the bill terminates the national sales tax if the Sixteenth Amendment to the Constitution (authorizing an income tax) is not repealed within seven years after the enactment of this bill.

US HB3745

Unemployment Trust Fund Accountability Act

US SB5505

A bill to limit spending from the Highway Trust Fund, and for other purposes.

US HB65

Ending Common Core and Expanding School Choice Act This bill revises requirements related to federal education funding for disadvantaged children. Specifically, the bill (1) eliminates the standards, assessments, and academic accountability requirements for state and local educational agencies that receive federal funds for the education of disadvantaged children; (2) requires such funds to be allocated based on the number of children residing in each state who are living in poverty; and (3) allows educational agencies to distribute per-pupil amounts from such funds to parents for qualified elementary and secondary education expenses. The bill prohibits federal officers or employees from mandating academic standards, assessments, curricula, or accountability systems.

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