H.R. 9296: Strengthening Social Security Act of 2026

This bill would make several changes to Social Security, mostly aimed at increasing benefits and changing how some benefits are calculated.

Payroll taxes on higher earnings

Starting after 2027, the bill would gradually apply Social Security payroll taxes to more of people’s wages and self-employment income above the current wage cap. Right now, Social Security taxes stop once earnings reach the annual “contribution and benefit base.” Under this bill:

• In 2028, 80% of earnings above the cap would be subject to Social Security taxes.
• That taxable share would shrink each year from 2029 to 2031.
• By 2032 and after, 100% of earnings above the cap would be subject to Social Security taxes.

This would apply to both employees and self-employed workers, with the self-employment rules following the same phase-in schedule.

Higher benefit formulas for future retirees

For people who first become eligible for Social Security retirement or disability benefits after 2032, the bill would change the formula used to calculate monthly benefits in ways that would generally increase benefits for some workers, especially those with higher lifetime earnings.

• It would increase the first step in the benefit formula from 90% to 95% over time.
• It would also add a new piece of the formula that gives 5% credit to certain “surplus” earnings above the wage cap.

In simple terms, some earnings that currently do not help determine Social Security benefits would start to count, which could raise benefits for some future beneficiaries.

New inflation measure for seniors

The bill would require the Bureau of Labor Statistics to create a new monthly inflation index called the Consumer Price Index for Elderly Consumers. This index would track price changes for spending patterns typical of people at early retirement age.

Starting with Social Security cost-of-living adjustments based on quarters ending on or after September 30, 2027, the bill would use this senior-focused index instead of the current index when calculating annual benefit increases. That could change how fast Social Security benefits rise over time.

Changes for widows and widowers

The bill would revise rules for Social Security survivor benefits for widows, widowers, and some divorced surviving spouses. It would change how those benefits are calculated for months after December 2027.

Among other things, it would:

• Adjust the formula used to set survivor benefits.
• Expand or revise the treatment of certain surviving divorced spouses.
• Set a cap in some cases tied to a hypothetical benefit calculation.

The result would be a new benefit formula for these survivors, which could increase benefits for some people and change amounts for others.

SSI protections

The bill would also say that, when determining eligibility for and the amount of Supplemental Security Income (SSI), a person’s Social Security benefit would be treated as no higher than what it would have been under the old law before this bill was enacted. This is intended to prevent the Social Security changes in the bill from reducing SSI eligibility or SSI payments for affected people.

Effective dates

• Tax changes: after 2027
• New benefit formulas for most future retirees: after 2032
• Senior inflation index: for months ending on or after June 30 of the enactment year, with Social Security COLA determinations starting for quarters ending on or after September 30, 2027
• Survivor benefit changes: for benefits payable after December 2027

Relevant Companies

None found