Social Security 2100 Act
- Sponsor
- Sen. Blumenthal, Richard [D-CT]
- Committees
- Finance Committee (primary)
- Last action
- Jul 21, 2026
Bottom line
The "Social Security 2100 Act" seeks to shore up Social Security's finances and expand benefits through a combination of increased taxation on high earners and investment income, alongside targeted benefit enhancements and administrative reforms.
What it actually does
This bill proposes significant reforms to the Social Security system, aiming to enhance benefits for current and future generations while strengthening the program's financial solvency. It includes across-the-board benefit increases, a more accurate cost-of-living adjustment, higher minimum benefits for low earners, and improved benefits for specific groups like widows, long-term beneficiaries, caregivers, and students. To fund these changes, it removes the cap on earnings subject to Social Security taxes, includes high earnings in the benefit formula, and applies Social Security tax to net investment income. It also merges the Old-Age and Survivors Insurance and Disability Insurance Trust Funds and includes provisions to improve service delivery and data protection.
Proponents argue
Supporters argue that the bill comprehensively addresses Social Security's long-term solvency challenges while simultaneously improving benefits for vulnerable populations and ensuring the program's vitality for future generations. They emphasize that the financing mechanisms, particularly the removal of the wage cap and taxation of investment income, ensure that higher earners contribute more, thereby protecting the system without cutting benefits or raising taxes on middle and lower-income workers.
Opponents contend
Opponents may contend that the bill imposes excessive tax burdens on high-income individuals and investors, potentially discouraging investment and economic growth. They might also argue that some benefit enhancements are fiscally unsustainable or that the temporary nature of certain benefit increases creates uncertainty, while the administrative changes could lead to increased bureaucracy.
The bill is highly complex and requires substantial time to understand its intricate changes to benefits and taxation, far exceeding what a typical legislator or public member might have for review.
Sec. 101, Title I
Across-the-Board Benefit Increase
This provision increases the primary insurance amount (PIA) factor for calculating Social Security benefits from 90 percent to 93 percent for monthly insurance benefits payable in calendar years 2027 through 2036. This change results in a modest across-the-board increase in initial benefits for new beneficiaries during this period.
Supporters argue
Proponents argue that this increase provides a much-needed boost to Social Security benefits, helping to ensure a more secure retirement for future generations of retirees and disabled workers.
Critics contend
Opponents might argue that an across-the-board increase, especially if temporary, adds to the system's long-term liabilities without a permanent funding mechanism, potentially exacerbating future solvency challenges.
Tradeoffs
This provision balances the desire to improve benefits with the need to manage the system's long-term financial health. The temporary nature of the increase is a key tension.
Sec. 102, Title I
More Accurate Cost-of-Living Adjustment (COLA)
This section modifies the calculation of the annual cost-of-living adjustment (COLA) for Social Security benefits. Instead of solely using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), it mandates using either the CPI-W or the Consumer Price Index for Elderly Consumers (CPI-E), whichever results in a higher percentage increase. The Bureau of Labor Statistics is directed to publish the CPI-E, with a transition rule to use a research index (R-CPI-E) until the official CPI-E is available. This change applies for COLA determinations from 2027 through 2036.
Sec. 103, Title I
Increasing the Minimum Benefit for Long-Term Low Earners
This section establishes a new alternative minimum primary insurance amount (PIA) for individuals with more than 10 years of work, effective for those becoming eligible after 2026. The minimum benefit is tied to a percentage of the annual poverty guideline for a single individual, with the percentage increasing with the number of years of work (up to 125% for 30 or more years). This ensures that long-term low-wage workers receive a more substantial Social Security benefit, preventing their benefits from falling below a certain poverty threshold. This applies for benefits payable in 2027-2036.
Sec. 104, Title I
Increasing Thresholds for Taxation of Social Security Benefits
This section amends the Internal Revenue Code to increase the income thresholds at which Social Security benefits become taxable. It eliminates the 85% inclusion rule, reverting to a maximum of 50% of benefits being taxable. The base amounts for taxation are increased to $35,000 for individuals and $50,000 for joint filers. This change applies to taxable years beginning after December 31, 2026, and before January 1, 2037. It also includes provisions to ensure the Hospital Insurance Trust Fund is held harmless and to transfer revenues to the Social Security Trust Fund.
Sec. 107, Title I
Providing Caregiver Credits for Social Security
This section establishes a system of 'deemed wages' for individuals who provide unpaid care to dependent relatives. For up to five qualifying years (non-consecutive), caregivers can receive Social Security credits as if they earned 50% of the national average wage index, or the difference if they had some earnings. A 'dependent relative' includes children under 12 or chronically dependent individuals (of any age) who require daily assistance with activities of daily living. This aims to prevent gaps in work history and reduced Social Security benefits for caregivers. This applies to individuals becoming eligible or dying in 2027-2036.
Sec. 108, Title I
Eliminating the 5-Month Waiting Period for Disability Benefits
This section eliminates the current 5-month waiting period before disability insurance benefits can begin. Under the new rule, benefits would be payable starting with the first month an individual is under a disability and becomes entitled to benefits. This change also applies to disabled surviving spouses and widow(er)s. This applies to individuals whose period of disability begins in 2027-2036, with a special rule for those in a waiting period as of January 2027.
Sec. 109, Title I
Establishing a Gradual Offset for Disability Beneficiaries with Earnings
This section reforms how earnings affect disability benefits. It eliminates the automatic termination of benefits due to work activity (the 'extended period of eligibility' and 'substantial gainful activity' thresholds for termination). Instead, it introduces a gradual benefit reduction: for every $2 earned above the Substantial Gainful Activity (SGA) amount for blind individuals, benefits are reduced by $1. This allows disability beneficiaries to work and earn more without immediately losing all benefits. This applies to months in calendar years 2027 through 2036.
Sec. 201, Title II
Repeal of Limitation on Social Security Wage Base for FICA and SECA After 2026
This section eliminates the cap on earnings subject to Social Security payroll taxes (FICA) and self-employment taxes (SECA) for remuneration paid or derived in calendar years after 2026. Currently, earnings above a certain 'contribution and benefit base' (e.g., $168,600 in 2024) are not subject to the Social Security portion of these taxes. This repeal means all earnings, regardless of amount, will be subject to the Social Security tax. It also includes a technical adjustment to artificially increase the National Average Wage Index for future years.
Sec. 202, Title II
Including Earnings Over the Contribution and Benefit Base in Social Security Benefit Formula
This section modifies the Social Security benefit formula to include earnings above the contribution and benefit base (the wage cap) in the calculation of an individual's primary insurance amount (PIA). Currently, only earnings up to the cap are considered for benefits. Under this change, earnings above the cap will be included, but at a lower factor (1 percent) compared to lower earnings. This applies to remuneration paid and self-employment income derived in calendar years after 2026.
Sec. 203, Title II
Application of Social Security Tax to Net Investment Income
This section expands the application of Social Security taxes to include net investment income (NII). It imposes an additional 12.4 percent tax on NII for individuals, estates, and trusts, specifically on amounts exceeding certain thresholds ($400,000 for individuals, $250,000 for joint filers, and $200,000 for others, with a separate $400,000 threshold for the Social Security portion). This is in addition to the existing 3.8 percent Medicare tax on NII. This applies to taxable years beginning after December 31, 2026.
Sec. 204, Title II
Establishing the Social Security Trust Fund
This section merges the existing Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund into a single 'Social Security Trust Fund.' It directs the transfer of all securities and balances from the two former funds into the new combined fund. All future Social Security taxes (FICA, SECA, and the new NII tax) will be appropriated to this single Trust Fund, and all benefit payments will be made from it. It also updates the Board of Trustees' responsibilities to reflect the combined fund.
Sec. 301, Title III
Rebuilding Social Security's Customer Service Workforce
This section mandates that the Commissioner of Social Security ensure the total number of full-time employees at the Social Security Administration (SSA) is not less than the total number of full-time employees as of January 19, 2025. This aims to restore staffing levels to improve customer service and reduce backlogs.
Sec. 302, Title III
Keeping Field Offices Open and Establishing Closure Requirements
This section imposes a moratorium on the closure or consolidation of SSA field or hearing offices or resident stations, or new limitations on public access, until 180 days after a detailed report is submitted to Congress (not earlier than January 21, 2029). After the moratorium, it establishes strict requirements for any future closures, consolidations, or access limitations, including public notice, multiple public hearings, a detailed report to Congress, and an appeals process for aggrieved individuals. It also prohibits closures if the total number of offices falls below the number in operation on January 19, 2025.
Sec. 305, Title III
Limiting Overpayment Recovery (Claws Off Social Security)
This section amends the Social Security Act to limit the amount the Commissioner of Social Security can decrease a monthly benefit to recover an overpayment. If the overpayment was not due to fraud or similar fault by the individual, the monthly benefit reduction is capped at 10 percent of the amount payable, unless the individual requests a higher recovery rate. This applies to overpayments outstanding on or after the date of enactment.
Establishes a transition rule for the Consumer Price Index for Elderly Consumers (CPI-E). Prior to the official publication of CPI-E, the research price index (R-CPI-E) prepared by the Bureau of Labor Statistics will be used for COLA determinations.
Sec. 102(e), Title I
Why it matters:This is standard legislative practice to ensure a smooth transition and immediate implementation of a new statistical measure, even if the final official version is not yet ready.
Case for: Ensures that the more accurate COLA calculation can begin without delay, providing beneficiaries with potentially higher adjustments sooner.
Case against: No specific opposition is typically raised against transition rules that facilitate implementation, provided the research index is a reliable proxy.
Estimated impact: Ensures the new COLA methodology is applied from 2027, potentially leading to slightly higher benefit increases for all beneficiaries during the transition period.
Many of the benefit enhancements in Title I, including the across-the-board increase, minimum benefit increase, COLA changes, caregiver credits, elimination of the disability waiting period, and changes to child and widow(er) benefits, are temporary, applying only for calendar years 2027 through 2036.
Sec. 101(b)(1), 103(c)(1), 104(d), 105(c), 106(c), 107(c), 108(c), 109(d), 110(e), 111(c), Title I
Why it matters:This could be a tactical maneuver to reduce the estimated long-term cost of the bill, making it appear more fiscally responsible while creating a future political imperative to extend the popular benefit increases.
Case for: Proponents might argue that the temporary nature allows for a trial period to assess the impact of the changes before making them permanent, or that it's a necessary compromise to achieve passage of other critical reforms.
Case against: Critics would argue that temporary benefit increases create uncertainty for beneficiaries and set up a 'fiscal cliff,' forcing future Congresses to extend them, potentially without adequate long-term funding.
Estimated impact: Limits the long-term fiscal cost of these benefit expansions, but creates significant policy uncertainty and future legislative pressure for beneficiaries.
This section includes a 'holding harmless' provision for Supplemental Security Income (SSI), Medicaid, and Children's Health Insurance Program (CHIP) beneficiaries. It specifies that for purposes of determining eligibility for and the amount of benefits under these means-tested programs, any increase in Social Security benefits due to Title I of this Act shall be disregarded.
Sec. 113, Title I
Why it matters:This is a crucial technical detail to prevent unintended negative consequences for low-income individuals who rely on multiple federal assistance programs. Its placement ensures it's part of the bill but might not be immediately apparent to a casual reader.
Case for: Proponents argue this is essential to prevent Social Security benefit increases from inadvertently causing beneficiaries to lose eligibility for other vital safety net programs, ensuring that the intended benefit improvements are not undermined.
Case against: No specific opposition is typically raised against 'hold harmless' provisions for means-tested programs, as they prevent adverse impacts on vulnerable populations.
Estimated impact: Ensures that low-income beneficiaries receive the full intended benefit of Social Security increases without jeopardizing their access to SSI, Medicaid, or CHIP.
For each calendar year after 2026, the national average wage index (NAWI) shall be deemed to be the determined NAWI increased by a specified percentage, starting at 0.5% for 2027-2032 and gradually increasing to 0.9% for years after 2048.
Sec. 201(c)(4), Title II
Why it matters:This is a subtle, long-term adjustment to a key economic index that affects both the contribution and benefit base and future benefit calculations. It's a technical way to gradually increase both revenues and benefits without explicitly raising tax rates or benefit formulas in a more visible manner.
Case for: Proponents would argue this is a necessary technical adjustment to ensure the NAWI accurately reflects economic growth and to provide a stable, long-term boost to Social Security's finances and benefits.
Case against: Critics might argue that artificially inflating the NAWI is a form of hidden tax increase or benefit adjustment that lacks transparency and could distort economic signals.
Estimated impact: Over the long term, this provision will lead to higher Social Security tax revenues (as the wage base rises faster) and potentially higher benefits (as initial benefits are wage-indexed).