Social Security 2100 Act seeks higher benefits, long-term program solvency

A sweeping Social Security reform bill reintroduced in the House of Representatives would boost benefits for millions of Americans, change how cost-of-living adjustments (COLAs) are calculated and impose new taxes on high earners to shore up program finances.

The Social Security 2100 Act, H.R. 9519, was reintroduced by Rep. John Larson (D-Ct.) and referred to multiple House committees.

Legislation aims to address a projected trust fund depletion in the fourth quarter of 2032, when incoming revenue would cover only about 78% of scheduled benefits unless Congress acts.

The bill would increase the basic benefit formula by raising the first percentage used in benefit calculations from 90% to 93% — providing a modest across-the-board boost for beneficiaries from 2027 through 2036.

“Although the Social Security 2100 Act is unlikely to pass in the current Congress, it should,” Shannon Benton, executive director of The Senior Citizens League, said in a statement. “The bill is the gold standard for Social Security reform and accomplishes the majority of changes older Americans want to see for the program.

“The reality is that poverty is increasing rapidly among American seniors, who make up the fastest-growing portion of the homeless population. Adjusting the minimum benefit to above the Federal poverty line would almost certainly slow this trend, although more holistic efforts may be required to stop it entirely.”

A new minimum benefit for long-term low earners would be established at 125% of the poverty guideline for workers with at least 30 qualifying years.

For a single individual using the 2026 poverty guideline, that would be roughly $1,663 per month. Surviving spouses in two-income households would see improved benefits under a new formula that could provide 75% of the couple’s combined benefits in some cases, according to an analysis of the bill .

COLA overhaul uses senior-specific inflation index

One of the most significant changes would affect the annual COLA.

Currently, Social Security uses the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.

H.R. 9519 would instead use whichever index produces a higher increase: CPI-W or the Consumer Price Index for Elderly Consumers — known as CPI-E — which is based on the spending patterns of Americans 62 and older.

The change would apply to COLAs determined from 2027 through 2036, after which the current formula would resume.

Caregiver credits, disability changes

The bill would allow unpaid caregivers who provide at least 960 hours of care annually — approximately 18.5 hours per week — to receive deemed earnings for up to five qualifying years, helping fill gaps in their work records that reduce future benefits.

For Social Security Disability Insurance, the legislation would temporarily eliminate the five-month waiting period for benefits.

“Congress will almost certainly have to pass a bill to address the program’s finances in the next few years,” Benton noted. “[That] provides a perfect chance to simultaneously shore up benefits for the next 100 years and continue the program’s legacy.”

Tax provisions target high earners

The legislation would also impose a 12.4% tax on some net investment income for high-income taxpayers — applying to the lesser of investment income or the amount by which modified adjusted gross income exceeds $400,000.

Supporters argue the wealthy should contribute more to the program that protects working families. Critics question the effect of a new investment tax and whether it weakens Social Security’s link to payroll contributions.

Many of the benefit increases in the legislation would expire after 2036, meaning lawmakers would need to act again in the future to keep them in place.

This article was written by Jonathan Delozier and generated with the assistance of HousingWire Automation. It was reviewed by a HousingWire editor before publication.