Social Security Expansion Act

Key Points

• The bill increases monthly Social Security benefits for all current and future recipients by raising the first bend point percentage from 90% to 95% and increasing the first bend point amount by 18%. This across-the-board boost would give every beneficiary a larger monthly check starting in 2026.
• Annual cost-of-living adjustments (COLAs) would be calculated using a new Consumer Price Index for Elderly Consumers (CPI-E) instead of the standard inflation measure. Because seniors spend more on healthcare, this index typically rises faster, meaning slightly bigger yearly raises for retirees.
• A new minimum benefit is created for lifetime low earners. Workers with at least 30 years of work would receive a minimum benefit equal to 125% of the federal poverty line, with smaller percentages for those with 11 to 29 years. This targets people who worked long careers but at low wages.
• Children of deceased or disabled workers could keep receiving Social Security benefits until age 22 if they are full-time students at a college or vocational school, up from the current cutoff around age 18 or 19. This helps families afford higher education after losing a parent or breadwinner.
• To fund these expansions, the bill applies Social Security payroll taxes to all earnings above $250,000 (currently, payroll taxes stop at about $168,600). It also raises the net investment income tax from 3.8% to 16.2%, directing 62% of the revenue into Social Security.
• The bill merges the two existing Social Security trust funds (Old-Age/Survivors and Disability) into a single Social Security Trust Fund. This simplifies the program's finances and directs all new revenue streams into one unified fund to extend the program's solvency.

Votes

No votes have been recorded for this legislation yet.