Sponsors (5)
The bill lets working seniors keep more of their Social Security and simplifies benefit rules for beneficiaries and administrators, at the cost of modestly higher program spending and some short‑term implementation disruption.
Seniors and retirees who keep working can avoid earnings-test deductions that previously reduced Social Security benefits, increasing their take-home Social Security income when they continue employment.
Beneficiaries and administering agencies face simpler, clearer rules and cross‑references (including a clarified "no wages, no net earnings from self‑employment" counting rule), making eligibility and benefit computations easier to understand and administer.
Removing the earnings‑test deductions will modestly increase Social Security outlays, which could put additional pressure on trust funds or federal spending over time.
Changes to SSI earned‑income definitions and cross‑references may cause short‑term confusion for SSI recipients and state agencies until implementing guidance and administrative updates are completed.
Based on analysis of 2 sections of legislative text.
Repeals the Social Security earnings test and related work‑based benefit deductions so that Social Security beneficiaries who continue to work will no longer have benefits withheld under the old earnings rules. It makes conforming edits across Social Security and Railroad Retirement law and updates cross‑references and benefit‑computation language, with changes effective for taxable years ending after December 31, 2026.
Repeals the Social Security earnings test and related deductions, stopping benefit withholding for working beneficiaries and updating cross‑references and computations.
Introduced April 16, 2026 by Gregory Francis Murphy · Last progress April 16, 2026