Social Security Caregiver Credit Act of 2026
- Sponsor
- Sen. Murphy, Christopher [D-CT]
- Committees
- Finance Committee (primary)
- Last action
- Apr 27, 2026
Bottom line
The bill aims to enhance the retirement security of unpaid caregivers by crediting them with deemed wages under Social Security for up to five years of service to dependent relatives.
What it actually does
This bill amends Title II of the Social Security Act to provide individuals who serve as unpaid caregivers for dependent relatives with "deemed wages" for up to five years of such service. These deemed wages would be added to their Social Security earnings record, potentially increasing their future retirement or disability benefits and recognizing the economic value of their caregiving contributions.
Proponents argue
Proponents argue that caregiving is an essential, often unpaid, service that significantly impacts an individual's ability to accrue Social Security benefits and save for retirement. They contend that this credit would provide vital retirement security for these individuals, predominantly women, by recognizing their economic contributions and addressing an unfair exclusion in current Social Security calculations.
Opponents contend
Opponents might raise concerns about the long-term fiscal solvency of the Social Security Trust Funds, arguing that introducing new categories of deemed wages without a clear, dedicated funding mechanism could exacerbate existing financial challenges. They may also point to the administrative complexity and potential for fraud in verifying caregiving services and chronic dependency.
The bill is relatively short and clearly structured, making its core provisions accessible for a quick read and understanding of its intent.
Section 1
Short Title
This section establishes the official short title of the bill as the "Social Security Caregiver Credit Act of 2026." This is the name by which the Act would be commonly known and referred to if it were to become law.
Supporters argue
A clear and concise short title is essential for easy reference and public understanding of the legislation's purpose.
Critics contend
No specific opposition is typically raised against the short title of a bill.
Section 2
Congressional Findings and Sense of the Senate
This section outlines Congress's rationale for the bill, stating that caregiving is vital for families and the economy, and a caregiver credit would enhance the economic prospects and retirement security of unpaid caregivers. It also notes the projected solvency of the Social Security Trust Funds until 2034 and expresses the Senate's view that Congress should address the exclusion of certain family home care providers from Social Security and Medicare.
Section 3(a), new Section 235 of Title II of the Social Security Act
Establishment of Deemed Wages for Caregivers
This is the core operative provision, amending the Social Security Act to allow individuals to be credited with "deemed wages" for up to 60 qualifying months (five years) of unpaid caregiving. For months with no other income, the deemed wage is 50% of the national average wage index. For months with some income, it's the excess of that 50% over half of their actual wages. This credit applies to benefits calculated for months after December 2026.
Section 3(a), new Section 235(a)
Definitions for Caregiver Credit Eligibility
This section defines key terms for eligibility. A "qualifying month" means at least 80 hours of unpaid care to a dependent relative, not after retirement age, and specifically excludes VA caregiver assistance as monetary compensation. A "dependent relative" includes children under 12, or chronically dependent individuals (children, grandchildren, nieces, nephews, parents, grandparents, siblings, aunts, uncles, spouses, or domestic partners) who need daily assistance with at least two activities of daily living (ADLs) or instrumental activities of daily living (IADLs).
Section 3(c), new Section 235(c)
Administrative Rules and Fraud Prevention
This section mandates the Commissioner of Social Security to issue regulations within one year to implement the caregiver credit and prevent fraud. It requires applicants to submit an application including the dependent relative's identifying information, physician documentation for chronically dependent individuals, and other verification. For subsequent periods of care, individuals must certify that the information provided in their initial application has not changed.
This clause specifies that assistance provided to a family caregiver of an eligible veteran under section 1720G of title 38, United States Code, shall not be considered monetary compensation for providing care to such eligible veteran, thus allowing these caregivers to still qualify for deemed wages.
Section 3(a), new Section 235(a)(1)(C)
Why it matters:It's a technical clarification designed to prevent a specific type of existing government support from inadvertently disqualifying caregivers, which is a common legislative practice to ensure policy coherence.
Case for: Supporters argue this ensures that family caregivers of veterans, who often bear significant burdens and may receive modest VA assistance, are not penalized for that support and can still benefit from the Social Security caregiver credit, promoting equity.
Case against: No direct opposition is typically raised against this specific carve-out, as it addresses a narrow equity concern. However, some might broadly argue against increasing complexity in benefit definitions.
Estimated impact: Ensures that a specific subset of caregivers (those receiving VA assistance for veteran care) remain eligible for the Social Security caregiver credit, potentially affecting thousands of individuals who might otherwise be excluded.