HR 3517119th CongressIntroduced

Social Security Enhancement and Protection Act of 2025

Introduced: May 20, 2025

Economy & TaxesSocial Services

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Social Security Enhancement and Protection Act of 2025 would make wide-ranging changes to how Social Security benefits are calculated and funded. It would (1) boost benefits for low-earning workers and for long-term beneficiaries, (2) extend dependent benefits for full-time post-secondary students up to age 26, (3) adjust how earnings above the current contribution and benefit base are taxed for Social Security, (4) create a new “bend point” for amounts above the base, (5) raise the Social Security payroll tax rates gradually for both employees and employers (and for self-employment), and (6) ensure these benefit increases do not count as income for means-tested programs. The bill is introduced by Rep. Moore (D-WI) and referred to the Ways and Means Committee, with specific effective dates beginning after 2025 for many provisions. In short, the bill aims to strengthen Social Security by delivering larger, more progressive benefits and by broadening the funding base through higher and expanded payroll taxes, while protecting beneficiaries from losing eligibility in means-tested programs.

Key Points

1Increase in special minimum benefit for lifetime low earners based on years worked (Sec. 2)
2- If you became eligible after 2025, the minimum benefit cannot be below a floor tied to a formula using years worked (including up to 5 years of child-care when you resided with a child under 6).
3- The floor grows with more years of work (11–30+ years in the table) and is linked to the poverty guideline and national average wage index, with adjustments over time.
4- Quarters of coverage and up to 5 years of caregiving are included in the “years of work” calculation.
5Increased monthly benefits for long-term eligibility (Sec. 3)
6- A “qualified beneficiary” (begins 16 years after the initial eligibility date) would receive increases to monthly benefits for each month of a calendar year, scaling up the longer the beneficiary has waited after eligibility.
7- The increase amount depends on how many years past eligibility (16–20+ years) and the type of benefit (retirement, disability, survivors, etc.), with higher percentages applying to longer waits.
8- The increases are paid from the Social Security Trust Fund and are subject to coordination with other benefit rules.
9Extension of child’s benefit for full-time post-secondary students under age 26 (Sec. 4)
10- A dependent child may remain eligible for benefits up to age 26 if they are a full-time student at a post-secondary institution (as defined by the Higher Education Act) and not married, among other conditions.
11- The bill broadens the definition of “post-secondary” and aligns the rules with full-time attendance standards.
12- Transitions from elementary/secondary to post-secondary attendance include a provision for short periods of nonattendance with intent to re-enter post-secondary study.
13New framework for child and other benefits timing (Sec. 4)
14- Various conforming amendments to ensure the post-secondary extension is integrated with existing child-related benefit rules.
15Determination of taxable wages and self-employment income above the current base after 2025 (Sec. 5)
16- The bill would extend Social Security taxation to a larger share of earnings above the current contribution and benefit base starting in 2026, with a ramp-down schedule over time (e.g., 90% in 2026, down to 0% after 2035 for wages above the base).
17- Similar phased adjustments apply to self-employment income regarding what portion is taxed for Old-Age, Survivors, and Disability Insurance.
18- It also revises how the base interacts with other tax-and-benefit calculations (e.g., relating to 209 and 230 bases and future reference points).
19New bend point for amounts above the contribution and benefit base (Sec. 6)
20- Creates an additional tier where 3% of indexed earnings above a certain threshold would be treated for benefit/tax purposes, effectively increasing the amount subject to Social Security rules for higher earners.
21- Includes transitional rules for 2026 and beyond to set these thresholds.
22Increases in the Social Security payroll tax rates (Sec. 7)
23- Employee and employer payroll tax rates would rise gradually beginning in 2026 (e.g., employees from 6.25% to 6.50% by 2031; same progression for employers).
24- Self-employment tax rates would also rise gradually (from 12.5% in 2026 to 13.0% by 2031).
25- The changes are designed to fund the expanded benefits and broader taxation of earnings above the base.
26Non-application of increases to means-tested programs (Sec. 8)
27- Any increases in monthly Social Security benefits would not count as income or resources for calculating eligibility or benefit amounts for means-tested federal or state/local programs.
28Primary Insurance Amount (PIA): the foundation of a Social Security retirement or disability benefit calculation; the bill modifies calculations around minimums and long-term increases.
29Contribution and Benefit Base (CBB): the wage base up to which Social Security payroll tax applies; the bill seeks to broaden and adjust how earnings beyond this base are treated.
30Average Indexed Monthly Earnings (AIME): used in calculating benefits; the bill introduces new bend points and adjustments related to high earners.
31Qualified Beneficiary: a beneficiary who is eligible to receive a long-term benefit increase under Sec. 3, per the timetable set by the bill.
32Many provisions apply to calendar year 2026 or later, with some changes (like the child-benefit extension) applying to calendar year after 2025. Full implementation would unfold over several years.

Impact Areas

Primary group/area affected- Current and future Social Security beneficiaries, particularly low-earnings workers, long-term beneficiaries (those eligible for extended boosts after long waits), and families with dependents in college or post-secondary education.- Workers who would face higher payroll taxes and those who earn above the current wage base.Secondary group/area affected- Employers and self-employed individuals who pay Social Security payroll taxes and self-employment taxes; they would see gradual rate increases and changes in how earnings beyond the base are taxed.- Auditors, benefits administrators, and the Social Security Trust Funds, which would need to implement new calculation rules, thresholds, and transition provisions.Additional impacts- Means-tested program participants: the bill explicitly says increased Social Security benefits would not be counted as income or resources for means-tested programs, which could affect eligibility and benefit calculations in programs funded with federal funds.- Budget and policy sustainability: the proposal relies on higher and broader taxes to fund expanded benefits, potentially changing labor market behavior and retirement planning; administration would require updates to many SSA calculations and related tax code interactions.- Economic effects: the staged tax increases and expanded taxation of earnings above the current base would raise federal revenue and redistribute some of the Social Security financing burden, with varying impacts across earners and family structures.

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