Summary#
This bill (Social Security 2100 Act) would raise many Social Security benefits and change how benefits and cost-of-living adjustments are calculated. It would also raise new revenues by removing the cap on wages subject to Social Security tax and by applying part of the Social Security tax to certain investment income. The bill aims to increase payments to retirees, disabled people, survivors, children, and caregivers, and to strengthen the Social Security trust funds and service delivery.
Key changes:
- Raises several benefit formulas and adds new minimums and supplements for long-term low earners, caregivers, widows/widowers, and long-term beneficiaries. Many benefit increases apply for months in calendar years 2027 through 2036.
- Changes the cost-of-living adjustment (COLA) rule to use whichever of two price indexes (CPI-W or a new CPI-E for elderly consumers) gives the larger increase for certain years, with the Bureau of Labor Statistics required to publish CPI-E.
- Removes the 5-month waiting period for disability benefits and replaces abrupt termination from work activity with a gradual earnings offset (benefits reduced $1 for each $2 of earnings above a threshold).
- Repeals the current cap that limits wages subject to Social Security payroll tax after 2026, and adds a small benefit credit (1% of earnings over the old cap) toward future benefits.
- Applies an additional Social Security tax (12.4% up to a defined threshold) to some net investment income above new threshold levels.
- Creates a single "Social Security Trust Fund" by combining the current Old-Age & Survivors and Disability funds and specifies transfers to the new fund.
- Requires SSA to maintain staffing, limits field-office closures, strengthens data-access limits and civil remedies for improper access or wrongful SSN invalidation, and requires mailed account statements unless a person chooses electronic delivery.
What it means for you#
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Retirees and current beneficiaries
- Many people on Social Security could see higher monthly payments between 2027 and 2036 because of higher base amounts, a possible higher COLA (using CPI-E if larger), and other special increases for long-term beneficiaries and low earners.
- Survivors (widows/widowers) in two-income households could receive higher survivor benefits.
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People with disabilities
- New beneficiaries would not wait five months to start receiving disability insurance payments.
- Benefits would not stop abruptly if someone returns to work; instead they would be reduced gradually based on earnings above a set monthly amount.
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Low earners and long-term workers
- People with long work histories but low lifetime earnings get a stronger minimum benefit and additional increases after 15 years of eligibility.
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Caregivers
- Unpaid caregivers who meet criteria could get up to five years of “deemed wages” credited for Social Security purpose, which could raise future benefits and insured status.
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Workers and high-income taxpayers
- Starting after 2026, there would be no upper limit on wages subject to Social Security payroll tax. This means people earning above the former cap would pay Social Security tax on the additional earnings.
- Net investment income above specified thresholds would be partly subject to an added Social Security tax component. This mostly affects higher-income taxpayers with investment income.
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Self-employed people
- Changes remove the prior cap on earnings subject to self-employment tax after 2026 and keep a small de minimis rule (excludes net earnings under $400).
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Families and students
- Children’s benefits could continue up to age 26 for qualifying post-secondary students who attend at least half time.
- Grandparents and other relatives who raise children would have clearer rules to qualify those children for benefits.
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Social Security Administration (SSA) users
- SSA must keep or restore staffing to at least its January 19, 2025 level and generally may not close or consolidate field or hearing offices without a detailed public process.
- Social Security account statements must be mailed unless a person chooses electronic delivery.
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Anyone concerned about data privacy or SSN errors
- Political appointees and certain short-term employees would be barred from accessing beneficiary data systems.
- People harmed by unauthorized access to SSA records or wrongful invalidation of an SSN could sue for damages and get civil penalties. Inspectors General and GAO studies are required.
Expenses#
No direct public cost estimate is included in the bill text or accompanying materials provided here.
Possible public costs and revenue changes the bill would likely cause:
- Increased benefit spending for 2027–2036 due to across-the-board increases, higher minimums, caregiver credits, elimination of waiting period, extended child benefits, and long-term eligibility increases.
- Increased payroll tax revenue from applying Social Security taxes to all wages above the former cap and to part of net investment income; the bill directs those revenues into the new Social Security Trust Fund.
- Administrative costs for SSA to hire and retain more staff, operate more field offices, implement caregiver credit rules, change benefit-computation systems, and publish new indexes (CPI-E).
- Costs for federal agencies (Treasury, SSA, BLS, GAO, IG) to carry out transfers, reporting, studies, and investigations specified by the bill.
- Potential legal and litigation costs tied to new civil damages provisions for data access and SSN invalidation.
Proponents' View#
The bill appears intended to:
- Increase monthly benefits and protect low earners, survivors, caregivers, and long-term beneficiaries from poverty.
- Make COLAs more accurate for older Americans by allowing use of a price index geared to elderly spending (CPI-E) when it gives a larger increase.
- Strengthen Social Security’s finances by taxing earnings above the old wage cap and taxing a portion of investment income, and by consolidating trust fund accounting.
- Improve service delivery by requiring more staff, keeping field offices open, and improving data protections.
- Reduce gaps and delays for new disability beneficiaries by removing the five-month waiting period and creating a predictable, gradual earnings offset to support work without abrupt loss of benefits.
Opponents' View#
Possible concerns or trade-offs based on the bill text:
- The bill increases taxes on high earners and on certain investment income; some may view this as a tax increase on specific groups.
- Many benefit increases are temporary in the bill language (applying to months in calendar years 2027 through 2036); it is not fully clear how benefits and taxes would be treated after 2036.
- Implementing caregiver credits and new eligibility rules will require new administrative steps, documentation, and fraud-prevention rules; this could be complex and costly for SSA.
- Combining trust funds and changing accounting rules is legally and operationally complex and may raise questions about how transfers and interest are handled in practice.
- The civil damages provisions for unauthorized access and wrongful SSN invalidation create potential for litigation and administrative burden; it is unclear how often claims may arise or how they will be processed.
- The moratorium and new procedural limits on closing or consolidating field offices could limit SSA’s ability to reorganize or pursue cost-saving measures if needed.
- Some details are not fully specified in the text, such as precise administrative thresholds, long-term cost estimates, and the practical process for collecting the new investment-related tax; those details affect how large the fiscal and distributional impacts will be.
What is unclear:
- The bill text does not include a fiscal note here, so total long-term cost and revenue estimates are not provided in the materials supplied.
- How some new taxes and trust-fund transfers will interact with other federal budgeting rules and off-budget accounting is not spelled out in detail beyond the transfers described.