Sponsors (5)
Repeals the Social Security retirement earnings test and related deduction provisions, ending benefit withholding based on earned income.
The bill lets retirees earn without automatic benefit reductions—boosting income and labor participation for older Americans—while increasing Social Security outlays and creating potential eligibility/administrative disruptions for some low-income and disabled beneficiaries.
Seniors and retired workers (including railroad retirees) can continue earning post-retirement income without automatic Social Security or Railroad Retirement benefit reductions, increasing take-home pay for working retirees.
Older Americans are more likely to remain in or reenter the workforce because they no longer face immediate benefit cuts, which can boost labor force participation and individual financial security.
Simplifying cross-references and statutory rules across Social Security and SSI reduces administrative complexity for beneficiaries, SSA staff, and state agencies, potentially lowering errors and compliance burden.
Taxpayers and future beneficiaries may face higher Social Security program costs because eliminating the earnings test increases benefit outlays and could worsen long-term solvency pressures.
Some SSI recipients and people with disabilities could see changes in how earnings are counted that affect eligibility or payment amounts, creating potential income losses or uncertainty for low-income and disabled individuals.
Short-term administrative transition and statute rework may cause confusion, processing delays, and recalculation errors for beneficiaries and SSA staff during implementation.
Based on analysis of 2 sections of legislative text.
Official title: To amend title II of the Social Security Act to repeal the retirement earnings test, and for other purposes.
Introduced April 16, 2026 by Gregory Francis Murphy · Last progress April 16, 2026
Repeals the Social Security retirement earnings test and removes related deduction and penalty cross-references across the Social Security Act and certain Railroad Retirement Act provisions, so Social Security beneficiaries can continue receiving full benefits regardless of earned income. The changes take effect for taxable years ending after December 31, 2026, and include conforming edits throughout federal benefit statutes to update or remove references to the repealed earnings-test provisions.