Text of Senate Amendment 6242

Quick facts

Record: Senate Floor
Section type: Amendments
Chamber: Senate
Date: June 24, 2026
Congress: 119th Congress
Why this source matters: This section came from the Senate floor portion of the record.

Readable version of the official text

SA 6242. Mr. KENNEDY submitted an amendment intended to be proposed by him to the bill S. 4784, to authorize appropriations for fiscal year 2027 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe military personnel strengths for such fiscal year, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. ADJUSTMENT OF CENSUS INCOME INEQUALITY CALCULATION.

(a) Definitions and Special Rules.—In this section:

(1) Administering agency.—The term “administering

agency” means a Federal, State, or local governmental agency

responsible for assessing income, collecting revenue,

administering a benefit, or collecting, compiling, and

analyzing data related to income assessments, revenue

collections, or benefits administration.

(2) Director.—The term “Director” means the Director of

the Bureau of the Census.

(3) Earned income.—

(A) In general.—The term “earned income” means income

paid to individuals from the following:

(i) Earnings from employment or self-employment, including

employment by a governmental entity to perform specific

services, with continued employment conditional on successful

delivery of those services.

(ii) Interest.

(iii) Dividends.

(iv) Rents, royalties, and estates and trusts.

(v) Realized capital gains.

(vi) The monetary value of employer-paid benefits,

including—

(I) health insurance premiums;

(II) the actuarial value of—

(aa) employer-funded health insurance net of employee

contributions;

(bb) life insurance premiums;

(cc) contributions to a health savings account (as defined

in section 223(d) of the Internal Revenue Code of 1986);

(dd) contributions to a qualified cash or deferred

arrangement (as defined in section 401(k)(2) of such Code);

(ee) contributions to an individual retirement plan (as

defined in section 7701(a)(37) of such Code); and

(ff) employer contributions to a defined contribution

retirement plan (as defined in section 414(i) of such Code);

(III) benefits from a defined benefit retirement plan (as

defined in section 414(j) of such Code) at the time the

benefits are delivered;

(IV) benefits provided to government employees tied

specifically to their employment, including veterans

benefits; and

(V) other benefits paid by an employer during retirement,

including pensions, healthcare coverage, and other benefits,

counted at the time at which the benefit is received.

(vii) In-kind compensation such as cost-free or reduced-

cost lodging or meals, except for items required by the

employer for performing work, such as uniforms or personal

protective equipment.

(B) Special rules for earned income.—

(i) Adjustments generally.—For purposes of subparagraph

(A), all types of earned income shall be reconciled and

adjusted to known, reliable independent benchmarks, including

benchmarks produced by statistical agencies, programmatic

agencies, the Internal Revenue Service, private sources, and

such other sources as the Director determines appropriate.

(ii) Readjustments.—In addition to adjusting earned income

under clause (i), additional adjustments shall be made for

missing and misreported data based on existing and future

research by the Bureau of the Census, other government

agencies, academic researchers, and other private research.

(4) Government transfer payments.—

(A) In general.—The term “government transfer payments”

means any money, goods, services, or discounts provided to

individuals, families, or households by or at the direction

of Federal Government or State, local, or other government

sources, including agencies and agents thereof, or by private

entities at the direction of any such source, that are not

payments for services performed as an employee or that are

not provided equally to all legal residents of the United

States without any conditions related to income, assets,

economic status, age, social condition, or any other

restriction.

(B) Inclusions.—The term “government transfer payments”

includes the following:

(i) Unemployment insurance compensation.

(ii) Workers' compensation.

(iii) Benefits administered by the Social Security

Administration, including—

(I) old-age insurance benefits and disability insurance

benefits under title II of the Social Security Act (42 U.S.C.

401 et seq.); and

(II) supplemental security income benefits under title XVI

of such Act (42 U.S.C. 1381 et seq.).

(iv) Benefits under the Railroad Retirement Act of 1974 (45

U.S.C. 231 et seq.).

(v) Other disability benefits from government, except those

provided to government employees as part of their employment

compensation.

(vi) Benefits provided under the Medicare program under

title XVIII of the Social Security Act (42 U.S.C. 1395 et

seq.), including any income-related subsidy described in

section 1860D-14 of such Act (42 U.S.C. 1395w-114), and any

other reduction in premiums or cost sharing, such as

deductibles, copaymentss, or coinsurance under such title.

(vii) So much of the amount of any income tax refund paid

to a taxpayer which is attributable to—

(I) the earned income credit under section 32 of the

Internal Revenue Code of 1986;

(II) the child tax credit under section 24 of such Code;

and

(III) any other refundable credit under subpart C of part

IV of subchapter A of chapter 1 of such Code.

(viii) Assistance or benefits provided under the Temporary

Assistance for Needy Families program established under part

A of title IV of the Social Security Act (42 U.S.C. 601 et

seq.).

(ix) Medical assistance provided under the Medicaid program

established under title XIX of the Social Security Act (42

U.S.C. 1396 et seq.).

(x) Child health assistance or pregnancy-related assistance

provided under the State Children's Health Insurance Program

established under title XXI of the Social Security Act (42

U.S.C. 1397aa et seq.).

(xi) Benefits provided pursuant to an Indian health program

(as defined in section 4 of the Indian Health Care

Improvement Act (25 U.S.C. 1603)).

(xii) Premium tax credits under section 36B of the Internal

Revenue Code of 1986, cost-sharing reduction payments under

section 1402 of the Patient Protection and Affordable Care

Act (42 U.S.C. 18071), or any other payment that reduces the

premium amount paid by the enrollee.

(xiii) Any other government payments to assist in

purchasing medical care or health insurance.

(xiv) Benefits under the supplemental nutrition assistance

program established under the Food and Nutrition Act of 2008

(7 U.S.C. 2011 et seq.).

(xv) Free and reduced price meals provided under the

Richard B. Russell National School Lunch Act (42 U.S.C. 1751

et seq.) and section 4 of the Child Nutrition Act of 1966 (42

U.S.C. 1773).

(xvi) Benefits and services provided under the special

supplemental nutrition program for women, infants, and

children established by section 17 of the Child Nutrition Act

of 1966 (42 U.S.C. 1786).

(xvii) Meals provided under the child and adult care food

program established under section 17 of the Richard B.

Russell National School Lunch Act (42 U.S.C. 1766).

(xviii) rental assistance under section 8 of the United

States Housing Act of 1937 (42 U.S.C. 1437f), including

housing choice vouchers and project-based rental assistance.

(xix) Assistance provided by the Rural Housing Service of

the Department of Agriculture, including rental assistance.

(xx) Assistance (including services) under the Low-Income

Home Energy Assistance Program, established under the Low-

Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et

seq.).

(xxi) A Federal Pell Grant under section 401 of the Higher

Education Act of 1965 (20 U.S.C. 1070a).

(xxii) So much of the American Opportunity Tax Credit under

section 25A of the Internal Revenue Code of 1986 as is

allowed under subsection (i) thereof.

(xxiii) Such other transfers by or at the direction of

Federal Government or State, local, or other government

sources that the Director determines to be consistent with

subparagraph (A) using available data sources.

(5) Income tax data.—The term “income tax data” means

return information, as defined in section 6103(b)(2) of the

Internal Revenue Code of 1986 (26 U.S.C. 6103(b)(2)).

(6) Statistical agency.—The term “statistical agency”

means—

(A) the Bureau of Labor Statistics of the Department of

Labor;

(B) the Bureau of Economic Analysis of the Department of

Commerce; and

that collects, processes, or publishes data related to any of

the components of income covered by this section.

(7) Taxes.—

(A) In general.—

(i) General definition.—The term “taxes” means all money

revenues paid by individuals, families, or households to the

Federal Government or a State, local, or other government

either directly or indirectly through an employer or other

entity based on their earnings from employment, savings,

investing, real estate, trusts, or other sources or on the

value, ownership, or usage of real estate property, personal

property, other assets of any kind, or purchases of goods and

services (including both real and financial).

(ii) Inclusions.—The term “taxes” includes—

(I) employment taxes under subtitle C of the Internal

Revenue Code of 1986 (whether paid by the employer or

employee);

(II) income taxes, including taxes on investment income;

(III) corporate income taxes allocated to shareholders

based on best research on share of corporate taxes that

reduce dividends;

(IV) corporate income taxes allocated to employees based on

best research on share of corporate taxes that reduce

compensation;

(V) self-employment income and payroll taxes;

(VI) property taxes;

(VII) capital gains taxes;

(VIII) estate taxes;

(IX) inheritance taxes;

(X) gift taxes;

(XI) sales taxes, use taxes, value added taxes, or any

other fee collected by government on sales of any goods or

any services (either real or financial) to households or

individuals;

(XII) excise taxes paid either separately or included as

part of the price paid for a good or service;

(XIII) tariffs and duties paid either directly or as part

of the price paid for a good or service; and

(XIV) such other sources of money revenues that the

Director determines to be consistent with clause (i).

(B) Special rules for determining amounts of tax.—

(i) In general.—For purposes of subparagraph (A), totals

of taxes shall be reconciled and adjusted to sum to total tax

and other revenue income available from other reliable

sources, including the Office of Management and Budget, the

Department of the Treasury, and the Bureau of Economic

Analysis.

(ii) Treatment of tax credits.—With respect to any

taxpayer:

(I) The amount of taxes paid shall be determined without

regard to any refund paid to the taxpayer which is

attributable to any refundable credit under subpart C of part

IV of subchapter A of chapter 1 of the Internal Revenue Code

of 1986.

(II) The amount of any refund paid to the taxpayer which is

attributable to any such refundable credit shall be treated

as a government transfer payment in accordance with paragraph

(3).

(b) New Methodology.—

(1) In general.—Not later than 1 year after the date of

enactment of this Act, the Director, in consultation with the

heads of other appropriate Federal, State, and local

agencies, as determined by the Director, shall implement a

new methodology to measure poverty, in addition to the

Official Poverty Measure and the Supplemental Poverty

Measure, that—

(A) uses the methodology outlined in the report of the

Congressional Budget Office titled “Reconciling the Official

Poverty Measure and CBO's Distributional Analysis of

Household Income”; and

(B) measures the income of an individual as the amount

equal to—

(i) the sum of earned income and government transfer

payments received by the individual, less

(ii) the taxes paid by the individual.

(2) Resolution of potential conflict.—To the extent of any

conflict between the requirements under subparagraphs (A) and

(B) of paragraph (1), the requirement under such subparagraph

(A) shall supersede the requirement under such subparagraph

(B).

(1) Federal agencies.—Not later than 180 days after the

head of a Federal agency receives a request from the Director

for data possessed or reasonably obtainable by such Federal

agency for carrying out this section, such head shall make

available to the Director such data to the extent otherwise

permitted by law.

(2) State and local agencies.—The Director may request the

head of a State or local agency that is an administering

agency to provide such data as the Director determines

necessary to carry out this section.

(d) Publication of Data.—

(1) Data report.—Not later than 1 year after the date on

which the Director implements the new methodology required

under subsection (b), the Director shall submit to Congress a

report detailing the implementation of this section,

including the availability and quality of data from the

administering agencies from which the Director has requested

information for carrying out this section.

(2) Measurement report.—

(A) In general.—Not later than 1 year after the date on

which the Director implements the new methodology required

under subsection (b), the Director shall submit to Congress a

report detailing the implementation of this section,

including—

(i) the recalculated measures of income inequality based on

the new calculation methodology implemented under subsection

(b);

(ii) a comparison between the recalculated measures of

income inequality and of household income dispersion based on

the new calculation methodology implemented under subsection

(b) and such measures based on the calculation methodologies

in use for such measures on the day before the date on which

such new calculation methodology was implemented; and

(iii) a comparison between each statistic tracked by the

Bureau of the Census based on the new calculation methodology

implemented under subsection (b) and such statistic based on

the calculation methodologies in use for such statistic on

the day before the date on which such new calculation

methodology was implemented.

(B) Data sources.—

(i) In general.—The Director shall use the best available

data sources in creating the report required under

subparagraph (A), including the use of surveys previously

collected by the Bureau of the Census, data from other

statistical agencies, data from private sources, and, in

cases of missing or unknown data, statistical imputations.

(ii) Survey augmentation.—In carrying out clause (i), the

Director may augment surveys being carried out by the Bureau

of the Census or the Bureau of Labor Statistics of the

Department of Labor.

(3) Statistics publication.—For all publications and data

sets issued after the date on which the Director implements

the new methodology required under subsection (b), the

Director shall use such new calculation methodology to

calculate each instance of each measure or statistic based on

such methodology, including each historical instance.

(e) Protection and Disclosure of Personally Identifiable

Information.—

(1) In general.—The security, disclosure, and

confidentiality provisions set for in sections 9 and 23 of

title 13, United States Code, shall apply to personally

identifiable information obtained by the Bureau of the Census

pursuant to this section.

(2) Restricted access to personally identifiable

information.—Access to personally identifiable information

collected to supplement the restricted-use Current Population

Survey Annual Social and Economic Supplements in accordance

with subsection (c)(1) shall be available only to those who

have access to the Current Population Survey data with the

permission of the Bureau of the Census and in accordance with

any other applicable provision of federal and state law.

(3) Criminal penalties.—Any individual who knowingly

accesses or discloses personally identifiable information in

violation of this section shall be fined not more than

$300,000, imprisoned for not more than 5 years, or both.

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