Safeguarding American Families and Expanding Social Security Act of 2025
Sponsored By: Senator Schatz, Brian [D-HI]
Introduced
Summary
This bill would restructure how Social Security is taxed and how benefits are calculated. It would phase down payroll and self‑employment taxes on earnings above the contribution base and change the benefit formula and cost‑of‑living adjustments.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Bigger Social Security benefits for future retirees
This bill would change how Social Security monthly benefits are calculated for many future beneficiaries. For 2026 it would set a $6,300 bend point and index later bend points to the national average wage index. It would raise the lowest PIA factor from 90% to 95% and add a new benefit equal to 5% of surplus earnings above the Social Security base. The bill would also require the Social Security Administration to recompute some existing PIAs in January 2026 using a 6,300/6,002 multiplier with special rounding, but people would keep their higher original PIA if the recomputation would lower it.
Use CPI-E for Social Security COLA
This bill would require the Social Security Administration to use the Consumer Price Index for Elderly Consumers (CPI-E) to set cost-of-living adjustments. That change would apply to COLA determinations for computation quarters ending on or after September 30, 2026. The bill would also require the Bureau of Labor Statistics to publish a monthly CPI-E starting for months ending on or after June 30 of the year the Act is enacted, and it would fund that work.
Lower Social Security tax on excess wages
This bill would reduce how much of your pay above the Social Security wage base is counted for Social Security tax. In 2026 the bill would count 80% of that excess. For 2027–2029 the counted share would drop by 20 percentage points each year. For 2030 and later the counted share would be 0%. The rule would apply to wages paid after 2025 and to self-employment tax years starting after 2025.
Sponsors & CoSponsors
Sponsor
Schatz, Brian [D-HI]
HI • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov