Sponsors (5)
The bill lets retirees earn income without automatic Social Security reductions—boosting take-home pay and work incentives—while increasing program costs and creating short-term administrative and SSI-related uncertainties.
Seniors and retired workers can keep full Social Security benefits even if they continue working after retirement; railroad retirees similarly will not face automatic benefit reductions under the Railroad Retirement Act.
Older Americans (seniors and near-retirees) are more likely to remain in or re-enter paid work because earnings will no longer trigger benefit deductions, increasing take-home income and labor force participation.
Seniors, state governments, and SSA staff benefit from simplified and more consistent rules and statute cross-references, which should reduce administrative complexity and confusion over time.
Taxpayers and current/future beneficiaries could face higher Social Security outlays and increased long-term solvency pressures because eliminating the earnings test raises program costs.
People receiving SSI and some individuals with disabilities may experience changes in how earnings are counted, risking reduced payments or altered eligibility and creating uncertainty during implementation.
Seniors and SSA staff may face short-term confusion, processing delays, and extra workload from recalculations and system updates required by the statutory changes.
Based on analysis of 2 sections of legislative text.
Repeals the Social Security retirement earnings test and updates related Social Security and Railroad Retirement statutory references.
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 so that Social Security retirement benefits are no longer reduced or withheld based on beneficiaries’ earnings from work. It also makes conforming changes across the Social Security Act and relevant Railroad Retirement provisions to remove references to the repealed earnings-test rules. The changes take effect for taxable years ending after December 31, 2026, and include edits to cross-references, penalty and suspension language, and related deduction provisions so statute text and related laws reflect the removal of the earnings-test framework.