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119-hr-8344119th CongressWALLET

Senior Citizens’ Freedom to Work Act of 2026

Sponsored By: Representative Murphy, Gregory F. [R-NC-3]

Introduced

Summary

Repeal of the Social Security retirement earnings test. This bill would eliminate the rules that reduce or stop Social Security retirement benefits when beneficiaries earn wages. It also would remove similar work‑based deductions in the Railroad Retirement Act and update Supplemental Security Income wage definitions to match.

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  • Seniors and older workers: Workers receiving Social Security retirement benefits would no longer have benefits reduced or suspended because of earned income. The change would apply for taxable years ending after December 31, 2026.
  • Supplemental Security Income (SSI) recipients: The bill rewrites the definition of "wages" for SSI, adding detailed exclusions and interpretations so SSI rules align with the removal of earnings‑based benefit reductions.
  • Railroad Retirement beneficiaries: The bill would repeal deductions on account of work under the Railroad Retirement Act by striking specified subsections and adjusting related language.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

Stop Social Security earnings test

This bill would repeal the Social Security earnings test and related deductions. If enacted, SSA would not reduce or suspend your retirement benefits because you keep working. The change would apply for tax years ending after December 31, 2026.

Change zero-earning year rules

This bill would change how the SSA counts a "zero‑earning" year when it computes your Social Security benefit. A year would count as zero only if you had no wages and no net self‑employment earnings after losses. The rule would apply for tax years ending after December 31, 2026, and it could raise or lower your computed benefit depending on your past wages and self‑employment.

New SSI wages definition

This bill would change what counts as wages for Supplemental Security Income (SSI). It would use the Social Security Act wage definition with some amount limits removed, count certain nonemployment services as work for SSI, and exclude some employer retirement payments from wages. The rule would apply for tax years ending after December 31, 2026, and could raise or lower your SSI payment depending on the types of payments you receive.

End railroad retirement work deductions

This bill would remove deductions on account of work under the Railroad Retirement Act. If enacted, Railroad Retirement beneficiaries would no longer have their benefits reduced because they earn wages or self‑employment income. The change would apply for tax years ending after December 31, 2026, and your personal effect would depend on your past earnings and prior deduction treatment.

Preserve penalties for pre-enactment deductions

This bill would preserve penalty and misrepresentation rules tied to deductions as they operated before enactment. If enacted, people whose benefits were reduced under the old earnings rules could still face penalties based on the pre‑enactment Section 203 rules. The rule would apply for tax years ending after December 31, 2026.

Sponsors & CoSponsors

Sponsor

Murphy, Gregory F. [R-NC-3]

NC • R

Cosponsors

  • Rep. Van Duyne, Beth [R-TX-24]

    TX • R

    Sponsored 4/16/2026

  • Rep. Tenney, Claudia [R-NY-24]

    NY • R

    Sponsored 4/16/2026

  • Rep. Smucker, Lloyd [R-PA-11]

    PA • R

    Sponsored 4/16/2026

  • Rep. Harshbarger, Diana [R-TN-1]

    TN • R

    Sponsored 4/16/2026

Roll Call Votes

No roll call votes available for this bill.

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