Senior Citizens’ Freedom to Work Act of 2026

Key Points

• This bill repeals the Social Security retirement earnings test, which currently reduces benefits for people who collect Social Security before full retirement age and earn above a certain threshold from working. If enacted, seniors could work and earn as much as they want without losing any of their monthly Social Security payments.
• The bill also eliminates the same type of earnings-based deductions for people receiving Railroad Retirement benefits, ensuring those retirees can also work without penalties to their checks.
• The changes would take effect for tax years ending after December 31, 2026, meaning seniors could start working without benefit reductions beginning in the 2027 tax year.
• The bill was introduced by Rep. Murphy along with four Republican cosponsors and has been referred to the House Ways and Means Committee. It still has a long road through Congress before it could become law.
• This proposal could increase short-term Social Security costs since more early retirees would receive full benefits while working. However, under current rules, benefits withheld due to earnings are eventually added back after full retirement age, so the long-term cost impact is more complex than it first appears.