H.R. 9296

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9296 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 9296

To improve the retirement security of United States families by 
strengthening Social Security.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 11, 2026

Ms. Sanchez (for herself, Ms. Schakowsky, Ms. Norton, Ms. Pingree, Mr. 
Lynch, and Mr. Cohen) introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee on 
Education and Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To improve the retirement security of United States families by 
strengthening Social Security.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Strengthening Social Security Act of 
2026''.

SEC. 2. DETERMINATION OF TAXABLE WAGES AND SELF-EMPLOYMENT INCOME ABOVE 
CONTRIBUTION AND BENEFIT BASE AFTER 2027.

(a) Determination of Taxable Wages Above Contribution and Benefit 
Base After 2027.--
(1) Amendments to the internal revenue code of 1986.--
Section 3121 of the Internal Revenue Code of 1986 is amended--
(A) in subsection (a)(1), by inserting ``the 
applicable percentage (determined under subsection 
(c)(1)) of'' before ``that part of the remuneration''; 
and
(B) in subsection (c), by striking ``(c) Included 
and Excluded Service.--For purposes of this chapter, 
if'' and inserting the following:
``(c) Special Rules for Wages and Employment.--
``(1) Applicable percentage of remuneration in determining 
taxable wages.--For purposes of subsection (a)(1), the 
applicable percentage for a calendar year shall be equal to--
``(A) for 2028, 80 percent,
``(B) for 2029 through 2031, the applicable 
percentage under this paragraph for the previous year, 
decreased by 20 percentage points, and
``(C) for 2032 and each year thereafter, 0 percent.
``(2) Included and excluded service.--For purposes of this 
chapter, if''.
(2) Amendments to the social security act.--Section 209 of 
the Social Security Act (42 U.S.C. 409) is amended--
(A) in subsection (a)(1)(I)--
(i) by inserting ``and before 2028'' after 
``1974''; and
(ii) by inserting ``and'' after the 
semicolon;
(B) in subsection (a)(1), by adding at the end the 
following new subparagraph:
``(J) The applicable percentage (determined under 
subsection (l)) of that part of remuneration which, 
after remuneration (other than remuneration referred to 
in the succeeding subsections of this section) equal to 
the contribution and benefit base (determined under 
section 230) with respect to employment has been paid 
to an individual during any calendar year after 2027 
with respect to which such contribution and benefit 
base is effective, is paid to such individual during 
such calendar year;''; and
(C) by adding at the end the following new 
subsection:
``(l) For purposes of subsection (a)(1)(J), the applicable 
percentage for a calendar year shall be equal to--
``(1) for 2028, 80 percent,
``(2) for 2029 through 2031, the applicable percentage 
under this subsection for the previous year, decreased by 20 
percentage points, and
``(3) for 2032 and each year thereafter, 0 percent.''.
(3) Effective date.--The amendments made by this subsection 
shall apply with respect to remuneration paid in calendar years 
after 2027.
(b) Determination of Taxable Self-Employment Income Above 
Contribution and Benefit Base After 2027.--
(1) Amendments to the internal revenue code of 1986.--
Section 1402 of the Internal Revenue Code of 1986 is amended--
(A) in subsection (b)(1), by striking ``that part 
of the net earnings'' and all that follows through 
``minus'' and inserting the following: ``an amount 
equal to the applicable percentage (as determined under 
subsection (d)(2)) of that part of the net earnings 
from self-employment which is in excess of the 
difference (not to be less than 0) between (i) an 
amount equal to the contribution and benefit base (as 
determined under section 230 of the Social Security 
Act) which is effective for the calendar year in which 
such taxable year begins, and''; and
(B) in subsection (d)--
(i) by striking ``(d) Employee and Wages.--
The term'' and inserting the following:
``(d) Rules and Definitions.--
``(1) Employee and wages.--The term''; and
(ii) by adding at the end the following:
``(2) Applicable percentage of net earnings from self-
employment in determining taxable self-employment income.--For 
purposes of subsection (b)(1), the applicable percentage for a 
taxable year beginning in any calendar year referred to in such 
paragraph shall be equal to--
``(A) for 2028, 80 percent,
``(B) for 2029 through 2031, the applicable 
percentage under this paragraph for the previous year, 
decreased by 20 percentage points, and
``(C) for 2032 and each year thereafter, 0 
percent.''.
(2) Amendments to the social security act.--Section 211 of 
the Social Security Act (42 U.S.C. 411) is amended--
(A) in subsection (b)--
(i) in paragraph (1)(I)--
(I) by striking ``or'' after the 
semicolon; and
(II) by inserting ``and before 
2028'' after ``1974'';
(ii) by redesignating paragraph (2) as 
paragraph (3); and
(iii) by inserting after paragraph (1) the 
following:
``(2) For any taxable year beginning in any calendar year 
after 2027, an amount equal to the applicable percentage (as 
determined under subsection (l)) of that part of net earnings 
from self-employment which is in excess of the difference (not 
to be less than 0) between--
``(A) an amount equal to the contribution and 
benefit base (as determined under section 230) that is 
effective for such calendar year, and
``(B) the amount of the wages paid to such 
individual during such taxable year, or''; and
(B) by adding at the end the following:
``(l) For purposes of subsection (b)(2), the applicable percentage 
for a taxable year beginning in any calendar year referred to in such 
paragraph shall be equal to--
``(1) for 2028, 80 percent,
``(2) for 2029 through 2031, the applicable percentage 
under this subsection for the previous year, decreased by 20 
percentage points, and
``(3) for 2032 and each year thereafter, 0 percent.''.
(3) Effective date.--The amendments made by this subsection 
shall apply with respect to taxable years beginning during or 
after calendar year 2028.

SEC. 3. ADJUSTMENTS TO BEND POINTS IN DETERMINING PRIMARY INSURANCE 
AMOUNT AND INCLUSION OF SURPLUS EARNINGS FOR BENEFIT 
DETERMINATIONS.

(a) Adjustments Relating to First Bend Point.--
(1) Increase in first bend point factor.--
(A) In general.--Section 215(a)(1)(A)(i) of the 
Social Security Act (42 U.S.C. 415(a)(1)(A)(i)) is 
amended by striking ``90 percent'' and inserting ``95 
percent''.
(B) Effective date; application rule.--The 
amendment made by subparagraph (A) shall apply with 
respect to computations or recomputations of primary 
insurance amounts made on or after January 1, 2032, 
except that section 215(a)(1)(A)(i) of the Social 
Security Act shall be applied by making the following 
substitutions for ``95 percent'' for computations and 
recomputations made in the following calendar years:
(i) For calendar year 2032, by substituting 
``91 percent''.
(ii) For calendar year 2033, by 
substituting ``92 percent''.
(iii) For calendar year 2034, by 
substituting ``93 percent''.
(iv) For calendar year 2035, by 
substituting ``94 percent''.
(2) Increase in first bend point.--Section 215(a)(1)(B) of 
such Act (42 U.S.C. 415(a)(1)(B)) is amended--
(A) by redesignating clause (iii) as clause (iv); 
and
(B) by inserting after clause (ii) the following 
new clause:
``(iii) With respect to computations or recomputations of 
primary insurance amounts made on or after January 1, 2032, the 
amount determined under clause (i) of this subparagraph for 
purposes of subparagraph (A)(i) for such calendar year shall be 
increased by--
``(I) for calendar year 2033, 1 percent,
``(II) for each of calendar years 2034 through 
2046, the percent determined under this clause for the 
preceding year increased by 1 percentage point, and
``(III) for calendar year 2047 and each year 
thereafter, 15 percent.''.
(3) Application of increase; recomputations.--The 
amendments made by this subsection shall apply with respect to 
every individual who becomes entitled to old-age or disability 
insurance benefits under title II of the Social Security Act, 
or who dies (before becoming so entitled), in any calendar 
year. Notwithstanding section 215(f)(1) of the Social Security 
Act, the Commissioner of Social Security shall recompute the 
primary insurance amount of each such individual on the first 
day of each calendar year during the period beginning with 
calendar year 2032 and ending with calendar year 2047 to the 
extent necessary to carry out the amendments made by this 
section.
(b) Inclusion of Surplus Average Indexed Monthly Earnings in 
Determination of Primary Insurance Amounts.--Section 215(a)(1)(A) of 
the Social Security Act (42 U.S.C. 415(a)(1)(A)) is amended--
(1) in clauses (i), (ii), and (iii), by inserting ``basic'' 
before ``average indexed monthly earnings'' each place it 
appears;
(2) in clause (ii), by striking ``and'' at the end;
(3) in clause (iii), by adding ``and'' at the end; and
(4) by inserting after clause (iii) the following new 
clause:
``(iv) 5 percent of the individual's surplus average 
indexed monthly earnings,''.
(c) Basic AIME and Surplus AIME.--
(1) Basic aime.--Section 215(b)(1) of such Act (42 U.S.C. 
415(b)(1)) is amended--
(A) by inserting ``basic'' before ``average''; and
(B) in subparagraph (A), by striking ``paragraph 
(3)'' and inserting ``paragraph (3)(A)'' and by 
inserting before the comma the following: ``to the 
extent such total does not exceed the contribution and 
benefit base for the applicable year''.
(2) Surplus aime.--
(A) In general.--Section 215(b)(1) of such Act (as 
amended by paragraph (1)) is amended--
(i) by redesignating subparagraphs (A) and 
(B) as clauses (i) and (ii), respectively;
(ii) by inserting ``(A)'' after ``(b)(1)''; 
and
(iii) by adding at the end the following 
new subparagraph:
``(B)(i) An individual's surplus average indexed monthly earnings 
shall be equal to the quotient obtained by dividing--
``(I) the total (after adjustment under paragraph (3)(B)) 
of such individual's surplus earnings (determined under clause 
(ii)) for such individual's benefit computation years 
(determined under paragraph (2)), by
``(II) the number of months in those years.
``(ii) For purposes of clause (i) and paragraph (3)(B), an 
individual's surplus earnings for a benefit computation year are the 
total of such individual's wages paid in and self-employment income 
credited to such benefit computation year, to the extent such total 
(before adjustment under paragraph (3)(B)) exceeds the contribution and 
benefit base for such year.''.
(B) Conforming amendment.--The heading for section 
215(b) of such Act is amended by striking ``Average 
Indexed Monthly Earnings'' and inserting ``Basic 
Average Indexed Monthly Earnings; Surplus Average 
Indexed Monthly Earnings''.
(3) Adjustment of surplus earnings for purposes of 
determining surplus aime.--Section 215(b)(3) of such Act (42 
U.S.C. 415(b)(3)) is amended--
(A) in subparagraph (A), by striking ``subparagraph 
(B)'' and inserting ``subparagraph (C)'' and by 
inserting ``and determination of basic average indexed 
monthly income'' after ``paragraph (2)'';
(B) by redesignating subparagraph (B) as 
subparagraph (C); and
(C) by inserting after subparagraph (A) the 
following new subparagraph:
``(B) For purposes of determining under paragraph (1)(B) an 
individual's surplus average indexed monthly earnings, the individual's 
surplus earnings (described in paragraph (2)(B)(ii)) for a benefit 
computation year shall be deemed to be equal to the product of--
``(i) the individual's surplus earnings for such year (as 
determined without regard to this subparagraph), and
``(ii) the quotient described in subparagraph (A)(ii).''.
(d) Effective Date.--The amendments made by subsections (b) and (c) 
shall apply with respect to individuals who initially become eligible 
(within the meaning of section 215(a)(3)(B) of the Social Security Act) 
for old-age or disability insurance benefits under title II of the 
Social Security Act, or who die (before becoming eligible for such 
benefits), in any calendar year after 2032.

SEC. 4. CONSUMER PRICE INDEX FOR ELDERLY CONSUMERS.

(a) In General.--The Bureau of Labor Statistics of the Department 
of Labor shall prepare and publish an index for each calendar month to 
be known as the ``Consumer Price Index for Elderly Consumers'' that 
indicates changes over time in expenditures for consumption which are 
typical for individuals in the United States who have attained early 
retirement age (as defined under section 216(l)(2) of the Social 
Security Act (42 U.S.C. 416(l)(2)) for purposes of an old-age, wife's, 
or husband's insurance benefit).
(b) Effective Date.--Subsection (a) shall apply with respect to 
calendar months ending on or after June 30 of the calendar year in 
which this Act is enacted.
(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out the provisions of 
this section.

SEC. 5. COMPUTATION OF COST-OF-LIVING INCREASES FOR SOCIAL SECURITY 
BENEFITS.

(a) In General.--Section 215(i) of the Social Security Act (42 
U.S.C. 415(i)) is amended--
(1) in paragraph (1)(G), by inserting before the period the 
following: ``, and, with respect to any monthly insurance 
benefit payable under this title, effective for adjustments 
under this subsection to the primary insurance amount on which 
such benefit is based (or to any such benefit under section 227 
or 228), the applicable Consumer Price Index shall be deemed to 
be the Consumer Price Index for Elderly Consumers and such 
primary insurance amount shall be deemed adjusted under this 
subsection using such Index''; and
(2) in paragraph (4), by striking ``and by section 9001'' 
and inserting ``, by section 9001'', and by inserting after 
``1986,'' the following: ``and by section 5(a) of the 
Strengthening Social Security Act of 2026,''.
(b) Conforming Amendments in Applicable Former Law.--Section 
215(i)(1)(C) of the Social Security Act, as in effect in December 1978 
and applied in certain cases under the provisions of such Act in effect 
after December 1978, is amended by inserting before the period the 
following: ``, and, with respect to any monthly insurance benefit 
payable under this title, effective for adjustments under this 
subsection to the primary insurance amount on which such benefit is 
based (or to any such benefit under section 227 or 228), the applicable 
Consumer Price Index shall be deemed to be the Consumer Price Index for 
Elderly Consumers and such primary insurance amount shall be deemed 
adjusted under this subsection using such Index''.
(c) Effective Date.--The amendments made by this section shall 
apply to determinations made by the Commissioner of Social Security 
under section 215(i)(2) of the Social Security Act (42 U.S.C. 
415(i)(2)) with respect to cost-of-living computation quarters ending 
on or after September 30, 2027.

SEC. 6. IMPROVING SOCIAL SECURITY BENEFITS FOR WIDOWS AND WIDOWERS IN 
TWO-INCOME HOUSEHOLDS.

(a) In General.--
(1) Widows.--Section 202(e) of the Social Security Act (42 
U.S.C. 402(e)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting 
``and'' at the end;
(ii) in subparagraph (C)(iii), by striking 
``and'' at the end;
(iii) by striking subparagraph (D);
(iv) by redesignating subparagraphs (E) and 
(F) as subparagraphs (D) and (E), respectively; 
and
(v) in the flush matter following 
subparagraph (E)(ii), as so redesignated, by 
striking ``or becomes entitled to an old-age 
insurance benefit'' and all that follows 
through ``such deceased individual,'';
(B) by striking subparagraph (A) in paragraph (2) 
and inserting the following:
``(2)(A) Except as provided in subsection (k)(5), 
subsection (q), and subparagraph (D) of this paragraph, such 
widow's insurance benefit for each month shall be equal to the 
greater of--
``(i) subject to paragraph (9), the primary 
insurance amount (as determined for purposes of this 
subsection after application of subparagraphs (B) and 
(C)) of such deceased individual, or
``(ii) subject to paragraphs (9) and (10), in the 
case of a fully insured widow or surviving divorced 
wife, 75 percent of the sum of any old-age or 
disability insurance benefit for which the widow or the 
surviving divorced wife is entitled for such month and 
the primary insurance amount (as determined for 
purposes of this subsection after application of 
subparagraphs (B) and (C)) of such deceased 
individual.'';
(C) in paragraph (5)--
(i) in subparagraph (A), by striking 
``paragraph (1)(F)'' and inserting ``paragraph 
(1)(E)''; and
(ii) in subparagraph (B), by striking 
``paragraph (1)(F)(i)'' and inserting 
``paragraph (1)(E)(i)''; and
(D) by adding at the end the following new 
paragraphs:
``(9) For purposes of clauses (i) and (ii) of paragraph 
(2)(A), in the case of a surviving divorced wife, the amount 
determined under either such clause (and, for purposes of 
clause (ii) of paragraph (2)(A), as determined after 
application of paragraph (10)) shall be equal to the applicable 
percentage (as determined under section 202(b)(2)(B)) of such 
amount (as determined before application of this paragraph but 
after application of subsection (k)(3)).
``(10) For purposes of paragraph (2)(A)(ii), the amount 
determined under such paragraph shall not exceed the primary 
insurance amount for such month of a hypothetical individual--
``(A) who became entitled to old-age insurance 
benefits upon attaining early retirement age during the 
month in which the deceased individual referred to in 
paragraph (1) became entitled to old-age or disability 
insurance benefits, or died (before becoming entitled 
to such benefits), and
``(B) to whom wages and self-employment income were 
credited in each of such hypothetical individual's 
elapsed years (within the meaning of section 
215(b)(2)(B)(iii)) in an amount equal to the national 
average wage index (as described in section 209(k)(1)) 
for each such year.''.
(2) Widowers.--Section 202(f) of the Social Security Act 
(42 U.S.C. 402(f)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (B), by inserting 
``and'' at the end;
(ii) in subparagraph (C)(iii), by striking 
``and'' at the end;
(iii) by striking subparagraph (D);
(iv) by redesignating subparagraphs (E) and 
(F) as subparagraphs (D) and (E), respectively; 
and
(v) in the flush matter following 
subparagraph (E)(ii), as so redesignated, by 
striking ``or becomes entitled to an old-age 
insurance benefit'' and all that follows 
through ``such deceased individual,'';
(B) by striking subparagraph (A) in paragraph (2) 
and inserting the following:
``(2)(A) Except as provided in subsection (k)(5), 
subsection (q), and subparagraph (D) of this paragraph, such 
widower's insurance benefit for each month shall be equal to 
the greater of--
``(i) subject to paragraph (9), the primary 
insurance amount (as determined for purposes of this 
subsection after application of subparagraphs (B) and 
(C)) of such deceased individual, or
``(ii) subject to paragraphs (9) and (10), in the 
case of a fully insured widower or surviving divorced 
husband, 75 percent of the sum of any old-age or 
disability insurance benefit for which the widower or 
the surviving divorced husband is entitled for such 
month and the primary insurance amount (as determined 
for purposes of this subsection after application of 
subparagraphs (B) and (C)) of such deceased 
individual.'';
(C) in paragraph (5)--
(i) in subparagraph (A), by striking 
``paragraph (1)(F)'' and inserting ``paragraph 
(1)(E)''; and
(ii) in subparagraph (B), by striking 
``paragraph (1)(F)(i)'' and inserting 
``paragraph (1)(E)(i)''; and
(D) by adding at the end the following new 
paragraphs:
``(9) For purposes of clauses (i) and (ii) of paragraph 
(2)(A), in the case of a surviving divorced husband, the amount 
determined under either such clause (and, for purposes of 
clause (ii) of paragraph (2)(A), as determined after 
application of paragraph (10)) shall be equal to the applicable 
percentage (as determined under section 202(c)(2)(B)) of such 
amount (as determined before application of this paragraph but 
after application of subsection (k)(3)).
``(10) For purposes of paragraph (2)(A)(ii), the amount 
determined under such paragraph shall not exceed the primary 
insurance amount for such month of a hypothetical individual--
``(A) who became entitled to old-age insurance 
benefits upon attaining early retirement age during the 
month in which the deceased individual referred to in 
paragraph (1) became entitled to old-age or disability 
insurance benefits, or died (before becoming entitled 
to such benefits), and
``(B) to whom wages and self-employment income were 
credited in each of such hypothetical individual's 
elapsed years (within the meaning of section 
215(b)(2)(B)(iii)) in an amount equal to the national 
average wage index (as described in section 209(k)(1)) 
for each such year.''.
(b) Effective Date.--The amendments made by this section shall 
apply with respect to widow's and widower's insurance benefits payable 
for months after December 2027.

SEC. 7. HOLDING SSI BENEFICIARIES HARMLESS.

For purposes of determining the income of an individual to 
establish eligibility for, and the amount of, benefits payable under 
title XVI of the Social Security Act, the amount of any benefit to 
which the individual is entitled under title II of such Act shall be 
deemed not to exceed the amount of the benefit that would be determined 
for such individual under such title as in effect on the day before the 
date of the enactment of this Act.
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