Raises the dollar thresholds that determine how much of Social Security benefits a taxpayer must include in taxable income, sets new base amounts ($34,000 single; $68,000 joint; $0 for certain married filers), and requires those thresholds to be adjusted annually for inflation and rounded. The bill directs funds to make Social Security and Railroad Retirement accounts whole for any transfers reduced by the change and makes the tax change effective for taxable years beginning after December 31, 2025.

Beginning in fiscal year 2027, the bill requires the Office of Management and Budget to rescind — from regular, non‑security discretionary appropriations — an amount each year equal to the law’s defined “total cost” for that year (with exclusions for security-category appropriations) and to publish an annual report on those rescissions starting January 1, 2028.