S770119th CongressWALLET

Social Security Expansion Act

Sponsored By: Senator Bernie Sanders

Introduced

Summary

would raise Social Security benefits and reshape how the program is funded. This bill would boost monthly payments for many beneficiaries, change how cost-of-living adjustments are measured, set new minimums for long-time low earners, raise taxes on certain high incomes, and create a single Social Security Trust Fund.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 2 costs, 0 mixed.

Higher Social Security checks and COLA

If enacted, monthly Social Security checks would grow for many people. The bill would raise the first PIA bend point from 90% to 95% and apply an automatic 18% boost for people first eligible after 2025. Cost-of-living increases would use the CPI-E index once BLS publishes it and the new computation quarter timing applies. Child benefits could continue for full-time students through age 22 in many cases, with short breaks of up to four months treated as continuous. The changes generally take effect January 1, 2026 and the Commissioner must recompute affected PIAs.

Combine Social Security trust funds

If enacted, the bill would merge the Old-Age and Survivors Insurance and Disability Insurance trust funds into one Social Security Trust Fund on January 1 of the first calendar year after enactment. The government would transfer existing securities and then appropriate specified payroll and NIIT-related amounts each year (100% of certain payroll and self-employment taxes and 62% of NIIT). Treasury must make emergency transfers if Trust Fund assets would be inadequate, and the Trust Fund would pay interest on those transfers. The Board of Trustees and actuarial reporting duties would continue and expand.

Higher Social Security tax up to $250,000

If enacted, in years where the official Social Security wage base is less than $250,000, wages above that base and up to $250,000 would become subject to OASDI payroll tax. The rule would also apply to self-employment earnings and railroad compensation and include a successor-employer attribution rule. These rules start for pay and self-employment earnings on or after January 1 of the first calendar year after enactment, but only in years where the statutory base is below $250,000.

Higher tax on investment income

If enacted, the Net Investment Income Tax rate would rise from 3.8% to 16.2% for tax years after enactment. The bill would also expand what counts as investment income and disallow certain net operating loss deductions when computing the tax. Investors and some business owners would likely pay substantially more tax each year under these rules.

Sponsors & CoSponsors

Sponsor

Bernie Sanders

VT • I

Cosponsors

  • Elizabeth Warren

    MA • D

    Sponsored 2/27/2025

  • Jeff Merkley

    OR • D

    Sponsored 2/27/2025

  • Peter Welch

    VT • D

    Sponsored 2/27/2025

  • Alex Padilla

    CA • D

    Sponsored 2/27/2025

  • Tina Smith

    MN • D

    Sponsored 2/27/2025

  • Chris Van Hollen

    MD • D

    Sponsored 2/27/2025

  • Edward Markey

    MA • D

    Sponsored 2/27/2025

  • Cory Booker

    NJ • D

    Sponsored 2/27/2025

  • Kirsten Gillibrand

    NY • D

    Sponsored 2/27/2025

  • Sheldon Whitehouse

    RI • D

    Sponsored 2/27/2025

Roll Call Votes

No roll call votes available for this bill.

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