US Federal 2025-2026 Regular Session

US Federal 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 HB1650

State Treasury; close those funds having no transactional activity other than interest from pooled investments.

US HB445

Border Security Investment ActThis bill imposes a fee on the electronic transfer of funds (i.e., remittances) sent to certain countries and provides funding for border security activities from the collected amounts.Specifically, the fee shall apply to remittances sent through money services business to one of the five countries that had the most citizens or nationals unlawfully enter the United States in the previous fiscal year, as determined by U.S. Customs and Border Protection. The fee must be 37% of the amount sent.Half of the money collected by the fee must be placed in a trust fund for reimbursing border states for expenses incurred for border security enforcement measures. The other half must be placed in another trust fund for (1) deploying technology and installing physical barriers along the U.S.-Mexico border, and (2) paying the wages and salaries of U.S. Border Patrol agents.If the amount in the trust funds exceeds a certain threshold, the excess money must be used only for deficit reduction.

US HB1850

Trusts; creating the Uniform Trust Code; definitions; creditor claims; revocable trusts; trustees; duties and powers of trustee; trustee liability; severability; effective date.

US HB422

No Subsidies for Wealthy Universities ActThis bill limits the indirect costs that are allowable under federal research awards to institutions of higher education (IHEs) with endowments above specified thresholds. (Generally, indirect costs represent expenses that are not specific to a research project but are needed to maintain the infrastructure and administrative support for federally funded research.)Specifically, the National Center for Education Statistics (NCES) must annually collect information regarding the endowments of each IHE that has entered into a program participation agreement with the Department of Education.With this collected information, NCES must identify and make lists of (1) each IHE with an endowment of more than $5 billion, and (2) each IHE with an endowment of more than $2 billion (but not more than $5 billion). NCES must submit these lists to the Office of Management and Budget, which must then distribute the lists to federal agencies, Congress, and the public.The bill establishes the following limits on the indirect costs allowable under federal research awards:for an IHE with an endowment of more than $5 billion, the IHE is prohibited from using these awards for indirect costs;for an IHE with an endowment of more than $2 billion (but not more than $5 billion), the IHE is limited to an indirect cost rate of 8%; andfor all other IHEs, an indirect cost rate of 15%.The Government Accountability Office must annually report to Congress on indirect cost reimbursement on federal research awards for IHEs.

US SF4266

Federal funding protection trust fund establishment

US HB1599

Dismantling Investments in Violation of Ethical Standards through Trusts Act

US HB62

Withholding Investments from Lawless Litigators In States Act or the WILLIS ActThis bill prohibits federal funds from being awarded or otherwise made available to the Fulton County District Attorney’s Office in Georgia. The bill also (1) rescinds any unobligated funds that were allocated for or otherwise made available to the office, and (2) directs the Department of Justice to require the office to reimburse the federal government for all funds that were expended for the office after January 1, 2021.

US HB1850

Trust; creating the Uniform Trust Code; definitions; creditor claims; revocable trusts; trustees; duties and powers of trustee; trustee liability; severability; effective date.

US HB749

Authorizes the Louisiana Tuition Trust Authority to contract with a program manager for the administration of certain savings accounts (ABLE, START, and START K12 programs) and the investment of account funds (RR +$4,000,000 GF EX See Note)

US A08876

Allows surplus or uncommitted funds in the New York state climate investment account to be returned to ratepayers.

Similar Bills

No similar bills found.