Social Security Expansion Act

The Social Security Expansion Act would make several changes to how Social Security benefits are calculated and funded. It would increase the primary insurance amount for lower earners, adjust how cost-of-living increases are calculated, establish a new minimum benefit for certain low-income beneficiaries, and allow full-time student children of deceased or disabled workers to receive benefits until age 22 instead of earlier cutoff ages.

To fund these expansions, the bill would extend Social Security payroll taxes to wages and self-employment income above $250,000, which is significantly higher than the current 2025 limit of $176,100. The bill would also increase taxes on net investment income and subject active business income to these taxes. Additionally, it would combine the separate trust funds for retirement and disability benefits into a single Social Security Trust Fund.

This bill has been introduced in the House and referred to committee. It has not yet been voted on by the full chamber, so these changes would only take effect if the bill passes both chambers of Congress and is signed into law.