Social Security Caregiver Credit Act of 2026
- Sponsor
- Rep. Schneider, Bradley Scott [D-IL-10]
- Committees
- Ways and Means Committee (primary)
- Last action
- Apr 23, 2026
Bottom line
This bill aims to enhance the retirement security of individuals who take time out of the paid workforce to provide unpaid care for dependent family members by crediting them with deemed wages under Social Security.
What it actually does
This bill amends Title II of the Social Security Act to allow individuals who provide at least 80 hours of unpaid care per month to a dependent relative to receive 'deemed wages' for up to 60 qualifying months (five years). These deemed wages, calculated as 50% of the national average wage index (or a lesser amount if the caregiver has some earnings), would be added to their Social Security earnings record, potentially increasing their future retirement or disability benefits.
Proponents argue
Proponents argue that caregiving is a vital service that often comes at a significant economic cost to individuals, particularly in terms of lost wages and reduced Social Security benefits. This credit would recognize the economic value of caregiving, bolster the economic prospects of unpaid caregivers, and provide them with vital retirement security, addressing an unfair exclusion.
Opponents contend
Opponents might argue that introducing deemed wages for unpaid work could strain the Social Security Trust Funds, which are already projected to face solvency challenges. They might also raise concerns about the administrative complexity and potential for fraud in verifying caregiving services and dependency, and question the fairness of crediting unpaid work compared to those who contribute through payroll taxes.
The bill is concise and relatively easy to read, allowing for a quick understanding of its core provisions.
Section 1
Short Title
This section establishes the official short title of the Act as the 'Social Security Caregiver Credit Act of 2026,' which is how the bill would be commonly referred to if enacted.
Supporters argue
A clear short title helps in identifying and referencing the legislation, making it easier for the public and policymakers to discuss and understand its purpose.
Critics contend
No specific opposition is typically raised against the short title of a bill, as it is a procedural element.
Section 2
Congressional Findings and Sense of Congress
This section outlines Congress's findings that caregiving is essential, that a caregiver credit would improve economic security for caregivers, and notes the Social Security Trust Funds' solvency projection until 2034. It also expresses a sense of Congress that professional home care providers for family members with disabilities should not be excluded from Social Security or Medicare.
Section 3(a), adding new Section 235 to Title II of the Social Security Act.
Establishment of Deemed Wages for Caregivers
This is the core of the bill. It amends the Social Security Act to allow individuals providing unpaid care to dependent relatives for at least 80 hours a month to receive 'deemed wages' for up to 60 qualifying months (5 years). These deemed wages would be 50% of the national average wage index for months with no actual earnings, or the excess of that amount over half of actual earnings for months with some earnings. This aims to boost their Social Security earnings record.
Section 235(a) (as added by Section 3(a))
Definitions for Caregiver Credit Eligibility
This section defines key terms for eligibility. A 'qualifying month' is one where an individual provides at least 80 hours of unpaid care to a dependent relative, not after retirement age. It clarifies that assistance for veterans under 38 U.S.C. 1720G is not considered monetary compensation. A 'dependent relative' includes children under 12, or chronically dependent children, grandchildren, nieces, nephews, parents, grandparents, siblings, aunts, uncles, spouses, or domestic partners.
Section 235(a)(3) (as added by Section 3(a))
Criteria for Chronic Dependency
This defines a 'chronically dependent individual' as someone needing daily assistance with at least two 'activities of daily living' (eating, bathing, dressing, toileting, transferring) or 'instrumental activities of daily living' (meal prep, managing finances, shopping, chores, communication, travel) without which they couldn't perform these activities.
Section 235(c) (as added by Section 3(a))
Application and Fraud Prevention Regulations
This section mandates the Commissioner of Social Security to issue regulations within one year to implement the section and prevent fraud. It requires caregivers to submit an application including the dependent relative's identifying information, physician documentation for chronically dependent relatives, and other verification info. For subsequent periods after the first 12 months, caregivers must certify that the information has not changed.
The term 'qualifying month' does not include any month ending after the date on which such individual attains retirement age.
Section 235(a)(1)(B)
Why it matters:This is standard legislative practice to define the scope and limitations of a term precisely within its definition, rather than as a separate, prominent clause.
Case for: This limitation ensures that the credit is primarily for individuals who are actively foregoing paid employment opportunities due to caregiving, rather than those already in retirement. It aligns with the goal of bolstering retirement security for those whose earnings records are impacted by caregiving during their working years.
Case against: Some might argue that caregiving responsibilities can extend well into retirement age, and individuals who continue to provide significant unpaid care even after reaching retirement age could still benefit from this credit, especially if their prior earnings were low or if they are delaying retirement due to caregiving.
Estimated impact: Limits the pool of eligible caregivers to those below retirement age, potentially reducing the overall cost of the program compared to an unlimited age scope and focusing the benefit on pre-retirement earnings gaps.
In any case in which there are more than 60 qualifying months for an individual, only the last 60 of such months shall be taken into account for purposes of this section.
Section 235(b)(1)(B)
Why it matters:This is standard legislative practice to define the scope and limitations of a term precisely within the section where it is applied, ensuring the calculation is correctly constrained.
Case for: This cap helps manage the fiscal impact on the Social Security Trust Funds by limiting the total amount of deemed wages an individual can receive. It acknowledges the significant impact of caregiving while ensuring long-term program sustainability and preventing open-ended liabilities.
Case against: Critics might argue that many caregiving situations extend far beyond five years, and this limitation does not fully address the long-term financial sacrifices made by dedicated caregivers, potentially leaving them still vulnerable in retirement despite years of service.
Estimated impact: Significantly limits the total potential increase in an individual's earnings record due to caregiving to a maximum of five years, thereby containing the overall cost to the Social Security system compared to an uncapped duration.
Amends the definition of 'national average wage index' to include the new Section 235(b)(1)(A)(i) for deemed wages.
Section 3(b), amending Section 209(k)(1) of the Social Security Act.
Why it matters:This is a standard technical adjustment to ensure consistency and proper statutory reference across the Social Security Act, a common practice in legislative drafting.
Case for: Ensures that the new deemed wage calculation correctly utilizes the established national average wage index, maintaining consistency and accuracy within the Social Security benefit calculation framework and preventing legal or administrative ambiguities.
Case against: No specific opposition is typically raised against technical conforming amendments, as they are necessary for the coherent operation of the law and do not introduce new policy substance.
Estimated impact: No direct fiscal impact, but ensures the correct calculation of deemed wages, which does have fiscal implications by correctly linking the new benefit to an existing economic indicator.