Safeguarding American Families and Expanding Social Security Act of 2025

This Act may be cited as the Safeguarding American Families and Expanding Social Security Act of 2025.

The table of contents for this Act is as follows:

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:

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.

For purposes of this chapter, if

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;

(ii) ; 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.

The amendments made by this subsection shall apply with respect to remuneration paid in calendar years after 2025.

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:

The term

(i) ; and

(ii) by adding at the end the following:

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.

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

(iii) ; 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.

The amendments made by this subsection shall apply with respect to taxable years beginning after calendar year 2025.

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.

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,

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.

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:

(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.

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.

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:

(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.

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.

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).

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.

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 2025,.

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.

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.

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.

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.

There are authorized to be appropriated such sums as are necessary to carry out the provisions of this subsection.