H.R. 9415

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9415 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 9415

To improve the retirement security of American families by increasing 
Social Security benefits for current and future beneficiaries while 
making Social Security stronger for future generations.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 23, 2026

Ms. Simon 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 American families by increasing 
Social Security benefits for current and future beneficiaries while 
making Social Security stronger for future generations.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Safeguarding 
American Families and Expanding Social Security Act of 2026''.
(b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Determination of taxable wages and self-employment income above 
contribution and benefit base after 2025.
Sec. 3. Adjustments to primary insurance amount formula and inclusion 
of surplus earnings for benefit 
determinations.
Sec. 4. Computation of cost-of-living increases for Social Security 
benefits; consumer price index for elderly 
consumers.

SEC. 2. DETERMINATION OF TAXABLE WAGES AND SELF-EMPLOYMENT INCOME ABOVE 
CONTRIBUTION AND BENEFIT BASE AFTER 2025.

(a) Determination of Taxable Wages Above Contribution and Benefit 
Base After 2025.--
(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 2026, 80 percent;
``(B) for 2027 through 2029, the applicable 
percentage under this paragraph for the previous year, 
decreased by 20 percentage points; and
``(C) for 2030 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) in subparagraph (I)--
(I) by inserting ``and before 
2026'' after ``1974''; and
(II) by inserting ``and'' after the 
semicolon; and
(ii) 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 2025 
with respect to which such contribution and benefit 
base is effective, is paid to such individual during 
such calendar year;''; and
(B) 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 2026, 80 percent;
``(2) for 2027 through 2029, the applicable percentage 
under this subsection for the previous year, decreased by 20 
percentage points; and
``(3) for 2030 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 2025.
(b) Determination of Taxable Self-Employment Income Above 
Contribution and Benefit Base After 2025.--
(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 zero) 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 
subsection shall be equal to--
``(A) for 2026, 80 percent;
``(B) for 2027 through 2029, the applicable 
percentage under this paragraph for the previous year, 
decreased by 20 percentage points; and
``(C) for 2030 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 
2026'' 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 2025, 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 zero) 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 2026, 80 percent;
``(2) for 2027 through 2029, the applicable percentage 
under this subsection for the previous year, decreased by 20 
percentage points; and
``(3) for 2030 and each year thereafter, 0 percent.''.
(3) Effective date.--The amendments made by this subsection 
shall apply with respect to taxable years beginning after 
calendar year 2025.

SEC. 3. ADJUSTMENTS TO PRIMARY INSURANCE AMOUNT FORMULA AND INCLUSION 
OF SURPLUS EARNINGS FOR BENEFIT DETERMINATIONS.

(a) Increase in Percentage Factor for Lowest Portion of Earnings 
Used To Determine Primary Insurance Amounts.--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) Inclusion of Surplus Average Indexed Monthly Earnings in 
Determination of Primary Insurance Amounts.--
(1) In general.--Section 215(a)(1)(A) of the Social 
Security Act (42 U.S.C. 415(a)(1)(A)) is amended--
(A) in clauses (i), (ii), and (iii), by inserting 
``basic'' before ``average indexed monthly earnings'' 
each place it appears;
(B) in clause (ii), by striking ``and'' at the end;
(C) in clause (iii), by adding ``and'' at the end; 
and
(D) by inserting after clause (iii) the following 
new clause:
``(iv) 5 percent of the individual's surplus average 
indexed monthly earnings,''.
(2) Bend point adjustments.--Section 215(a)(1)(B) of such 
Act (42 U.S.C. 415(a)(1)(B)) is amended--
(A) in clause (i), by inserting ``For individuals 
who initially become eligible for old-age or disability 
insurance benefits, or who die (before becoming 
eligible for such benefits), in the calendar year 2026, 
the amount established for purposes of clause (ii) of 
subparagraph (A) shall be $6,300.'' after the period;
(B) in clause (ii)--
(i) by redesignating subclauses (I) and 
(II) as items (aa) and (bb), respectively;
(ii) by striking ``For individuals'' and 
inserting ``(I) Subject to subclause (II), for 
individuals''; and
(iii) by adding at the end the following 
new subclause:
``(II) For individuals who initially become eligible for 
old-age or disability insurance benefits, or who die (before 
becoming eligible for such benefits), in any calendar year 
after 2026, the amount established for purposes of clause (ii) 
of subparagraph (A) shall equal the product of the amount 
established with respect to calendar year 2026 under clause (i) 
of this subparagraph and the quotient obtained by dividing--
``(aa) the national average wage index (as defined 
in section 209(k)(1)) for the second calendar year 
preceding the calendar year for which the determination 
is made, by
``(bb) the national average wage index (as so 
defined) for 2024.'';
(C) by redesignating clause (iii) as clause (iv); 
and
(D) by inserting after clause (ii) the following 
new clause:
``(iii) For individuals who initially become eligible for 
old-age or disability insurance benefits, or who die (before 
becoming eligible for such benefits) in any calendar year after 
2030, the amount determined under clause (ii) of this 
subparagraph for purposes of subparagraph (A)(i) for such 
calendar year shall be increased by--
``(I) for calendar year 2031, 1 percent;
``(II) for each of calendar years 2032 through 
2044, the percent determined under this clause for the 
preceding year increased by 1 percentage point; and
``(III) for calendar year 2045 and each year 
thereafter, 15 percent.''.
(3) Recomputation of benefits for existing beneficiaries.--
Section 215(f) of the Social Security Act (42 U.S.C. 415(f)) is 
amended by adding at the end the following new paragraph:
``(10) Recomputation of primary insurance amount for 
individuals who became eligible for benefits before 2026.--
``(A) The Commissioner of Social Security shall 
recompute the primary insurance amounts applicable to 
beneficiaries whose benefits are based on a primary 
insurance amount that was computed under this section 
effective prior to January 2026. Such recomputation 
shall be effective January 2026.
``(B) In recomputing the primary insurance amount 
applicable to a beneficiary under this paragraph, the 
Commissioner of Social Security shall calculate the 
primary insurance amount of the individual under 
subsection (a)(1) as in effect on the date that such 
primary insurance amount was initially computed, except 
that the Commissioner shall substitute for the amount 
that applied under subparagraph (B)(ii) of such 
subsection on such date an amount equal to the product 
of--
``(i) the amount that applied under such 
subparagraph on such date; and
``(ii) the ratio of--
``(I) 6,300; to
``(II) 6,002.
``(C) Each amount determined under subparagraph (B) 
shall be rounded to the nearest $1, except that any 
amount so established which is a multiple of $0.50 but 
not of $1 shall be rounded to the next higher $1.
``(D) If a primary insurance amount applicable to a 
beneficiary, as recomputed under this paragraph, is 
lower than the primary insurance amount applicable to 
such beneficiary as it was originally computed, such 
higher primary insurance amount shall continue to apply 
to such beneficiary.''.
(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 striking ``An individual's'' and 
inserting ``(A) An individual's''; 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)--
(i) by striking ``subparagraph (B)'' and 
inserting ``subparagraph (C)''; and
(ii) by inserting ``and determination of 
basic average indexed monthly income under 
paragraph (1)(A)'' 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 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 this section 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 2030.

SEC. 4. COMPUTATION OF COST-OF-LIVING INCREASES FOR SOCIAL SECURITY 
BENEFITS; CONSUMER PRICE INDEX FOR ELDERLY CONSUMERS.

(a) Computation of Cost-of-Living Increases.--
(1) In general.--Section 215(i) of the Social Security Act 
(42 U.S.C. 415(i)) is amended--
(A) 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 the Consumer 
Price Index for Elderly Consumers and such primary 
insurance amount shall be adjusted under this 
subsection using such Index''; and
(B) in paragraph (4)--
(i) by striking ``and by section 9001'' and 
inserting ``, by section 9001''; and
(ii) by striking ``1986,'' and inserting 
``1986, and by section 5(a) of the Safeguarding 
American Families and Expanding Social Security 
Act of 2026,''.
(2) 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 the Consumer Price Index for 
Elderly Consumers and such primary insurance amount shall be 
adjusted under this subsection using such Index''.
(3) Effective date.--The amendments made by this subsection 
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, 2026.
(b) Consumer Price Index for Elderly Consumers.--
(1) 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.
(2) Effective date.--Paragraph (1) shall apply with respect 
to calendar months ending on or after June 30 of the calendar 
year in which this Act is enacted.
(3) Authorization of appropriations.--There are authorized 
to be appropriated such sums as are necessary to carry out the 
provisions of this subsection.
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