What the bill proposes

Senator Elizabeth Warren introduced legislation that would increase Social Security benefits and change how the program is funded. The bill, called the Social Security Expansion Act, would raise the monthly payment most retirees receive, increase benefits for disabled workers and survivors, and adjust the payroll tax cap that currently limits how much high earners pay into the system.

The core change is financial: the bill would remove the cap on wages subject to Social Security tax. Right now, only earnings up to a certain amount each year are taxed for Social Security — that threshold was $168,600 in 2024, but it changes annually. Under Warren's proposal, all wages above that cap would also be taxed, meaning higher-income workers would pay more into the system.

The bill would also increase the minimum benefit for long-term workers and boost payments for people who were caregivers or had lower lifetime earnings. It would raise the special minimum benefit — a floor that protects workers with very low career earnings — and adjust how benefits are calculated for certain groups.

Key Takeaways

  • The Social Security Expansion Act would raise monthly benefits for most retirees, disabled workers, and survivors by an average amount that varies depending on your earnings history.
  • The bill removes the payroll tax cap, meaning workers earning above the current threshold would pay Social Security tax on all their income instead of only the first portion.
  • The proposal would increase the minimum benefit floor for workers with low lifetime earnings and adjust calculations for caregivers and certain other groups.
  • As of now, this bill has not passed into law and remains a legislative proposal in Congress.

How the payroll tax cap works today

Social Security is funded by a 12.4% payroll tax split between workers and employers — each pays 6.2%. That tax applies only to earnings below a cap, which Congress adjusts each year based on wage growth. In 2024, the cap was $168,600, meaning a worker earning $200,000 paid tax only on the first $168,600 of income.

This cap means high earners pay a smaller percentage of their total income into Social Security than middle-income workers do. A person earning $50,000 pays tax on all of it. A person earning $500,000 pays tax on only about one-third of their income. Warren's bill would eliminate this difference by taxing all wages equally, regardless of how high they go.

The cap exists partly by design — Social Security was created to replace a portion of working income, not all of it. But it also means the system collects less revenue from the highest earners, which affects how much money is available to pay benefits in future years.

What would happen to your benefits under this bill

If the bill passed, most people receiving Social Security would see their monthly payment increase. The exact amount depends on your earnings history and when you started receiving benefits. Workers who earned lower wages during their career would see larger percentage increases because the bill raises the minimum benefit floor.

Someone who worked full-time at average wages their entire career would receive a higher monthly check than they would under current law. Someone who took time out of the workforce for caregiving would also benefit, because the bill includes provisions that improve how caregiving years are counted in benefit calculations.

The bill does not change the age at which you can start receiving benefits, and it does not change how benefits are calculated for current retirees who are already receiving payments — only future benefit amounts would increase.

Who would pay more under this proposal

Workers earning above the current payroll tax cap would pay more in Social Security tax each year. A person earning $200,000 would pay tax on an additional $31,400 of income (using the 2024 cap). A person earning $500,000 would pay tax on an additional $331,400 of income. Their employers would also pay the matching 6.2% tax on those additional wages.

The bill includes a gap in the middle: there would be a period where no one pays the tax on wages between the old cap and a new, higher cap. This is designed to ease the transition. After that gap closes, all wages would be taxed equally.

Workers earning below the current cap would not pay any additional tax. Their Social Security contributions would remain the same as they are now.

The current status of this bill

The Social Security Expansion Act has been introduced in Congress multiple times but has not passed into law. Bills are introduced, debated, and often do not advance further. Whether this bill moves forward depends on votes in the House and Senate, and it would require the President's signature to become law.

Social Security itself remains unchanged by this proposal. Current benefits continue to be paid as they are now. The bill represents one possible direction Congress could take, but it is not yet policy.

You can track the status of any bill through Congress.gov, which shows whether it has been voted on, which committees have reviewed it, and what stage it is currently in.

How this bill compares to other Social Security proposals

Different lawmakers have proposed different solutions to Social Security's long-term funding questions. Some proposals raise the payroll tax rate instead of removing the cap. Others suggest raising the full retirement age or means-testing benefits for higher-income retirees. Warren's approach focuses on having higher earners pay more tax while increasing benefits across the board.

Some proposals combine multiple changes — raising both the tax rate and the cap, for example. Others focus only on the revenue side without increasing benefits. The Social Security Expansion Act is one option among several that have been discussed in Congress.

The Social Security Administration publishes an annual report on the program's finances that explains different scenarios and what each would cost. That report is available on the SSA website and shows the math behind various proposals.

Frequently Asked Questions

Would my current Social Security benefits change if this bill passed?

No. The bill would not change benefits for people already receiving Social Security. Only future benefit amounts would increase. If you are currently retired and collecting payments, your monthly check would stay the same under this proposal.

What happens to Social Security if no changes are made?

The Social Security Trust Fund is projected to have less money available than needed to pay full benefits at some point in the future — the exact year varies depending on economic conditions and life expectancy. Without changes to revenue or benefits, the program would pay a reduced benefit to everyone. This is a separate issue from whether any particular bill passes.

Could this bill affect self-employed people?

Yes. Self-employed people pay both the employee and employer portions of the payroll tax (12.4% total). If the cap were removed, they would pay tax on all their income above the current cap, just like employees and employers would. The tax rate itself would not change.

Does this bill address the long-term funding of Social Security?

Removing the payroll tax cap would bring in more revenue to the Social Security Trust Fund, which would extend the time before the fund runs short. However, whether it fully solves the long-term funding question depends on future wage growth, life expectancy, and other economic factors. The Social Security Trustees publish projections showing different scenarios.

Where can I read the actual bill text?

Congress.gov has the full text of the Social Security Expansion Act and all other bills introduced in Congress. You can search by bill number or sponsor name. The site also shows which committees have reviewed it and any votes that have taken place.