Articles Tagged with CBO

Introduction

Social Security’s long term financial outlook has again moved to the forefront with the release of the Congressional Budget Office’s 2026 long term projections and the Social Security Trustees’ latest annual assessment. Although the reports differ in methodology and some of their estimates, they point to the same fundamental challenge: under current law, the gap between Social Security’s scheduled benefits and the revenues available to finance them is projected to persist and generally widen over the decades ahead. This article examines the findings of CBO and the Trustees, supplemented by analysis from J.P. Morgan Asset Management, with particular attention to the projected depletion of trust fund reserves, the distinction between scheduled and payable benefits, the demographic and economic forces contributing to the financing gap, and what these projections actually mean, and do not mean, for the future of Social Security.

CBO’s 2026 Long Term Projections for Social Security

Budget reconciliation is a special congressional procedure created by the Congressional Budget Act of 1974 that allows Congress to consider legislation affecting federal spending, revenues (taxes), and the debt limit under expedited procedures. Most notably, reconciliation bills can pass the Senate with a simple majority vote rather than the 60 votes normally needed to overcome a filibuster. As a result, reconciliation has become one of the most important tools for enacting major fiscal policy changes. The following is an overview of the congressional budget reconciliation  process and a discussion of its importance to librarians, researchers, and the general public.

What Is Reconciliation?

Reconciliation is designed to align existing laws with the fiscal goals established in a congressional budget resolution. It can be used to:

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