H.R. 9415: Safeguarding American Families and Expanding Social Security Act of 2026

This bill would change Social Security in three main ways:

1. It would raise payroll taxes on higher earnings

Starting after 2025, the bill would gradually require Social Security payroll taxes to apply to more income above the current wage cap, instead of stopping at the cap.

• In 2026, 80% of earnings above the Social Security wage base would be subject to tax.
• That taxable share would drop by 20 percentage points each year from 2027 through 2029.
• By 2030 and later, 0% would be taxed under this specific new rule, meaning this added tax treatment would phase out.

The same phase-in would apply to self-employment income above the wage base. The changes would begin for wages paid and tax years after 2025.

2. It would increase some Social Security benefits

The bill would change how a worker’s Social Security benefit is calculated, which would generally increase benefits for many people.

• It would raise the factor applied to the lowest part of a worker’s earnings from 90% to 95%.
• It would add a new “surplus earnings” calculation, which would give some credit in benefit formulas for earnings above the current wage base.
• It would also adjust the “bend points” used in the benefit formula, including setting a new 2026 amount and indexing later amounts to wage growth.
• For people who already receive benefits before 2026, the bill would require Social Security to recompute their benefit amount using the new rules, while preventing anyone’s benefit from going down because of the recalculation.

These benefit formula changes would generally apply to people who first become eligible for benefits after 2030.

3. It would change how annual cost-of-living increases are calculated

The bill would direct Social Security to use a new inflation measure for benefit updates: the Consumer Price Index for Elderly Consumers.

• This index would be prepared monthly by the Bureau of Labor Statistics.
• It would measure spending patterns typical of older Americans.
• Social Security cost-of-living adjustments would use this index for certain benefit calculations beginning with quarters ending on or after September 30, 2026.

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