H.R. 1700: Social Security Expansion Act
Sponsor
Val Hoyle
Democrat · OR-4
Bill Progress
Latest Action · Feb 27, 2025
Assigned to Subcommittee on Railroads, Pipelines, and Hazardous Materials. for review
Why it matters
The bill would raise Social Security benefits starting in 2026 while paying for it with new taxes on wages above the current cap, self-employment income, and a major jump in the investment income tax rate.
To finance all this, the bill reopens Social Security taxation above the current wage cap. Payroll taxes would apply to remuneration above the contribution and benefit base up to $250,000, and the same rule would apply to self-employment income above the contribution and benefit base up to $250,000, both effective January 1 of the first calendar year after enactment. It also sharply increases the section 1411 tax rate from 3.8% to 16.2% and expands it to include active trade or business income for taxable years beginning after enactment. Finally, it merges the Old-Age and Survivors Insurance and Disability Insurance trust funds into a single Social Security Trust Fund, funded with 100% of payroll taxes, 100% of self-employment taxes, and 62% of section 1411 taxes, with the merger taking effect January 1 of the first calendar year beginning after enactment.
What does H.R. 1700 do?
Benefit formula boosted from 90% to 95%
The bill raises the first bend point percentage in the Social Security benefit formula from 90% to 95%, and for people eligible for old-age or disability benefits after 2025, it increases the amount under section 215(a)(1)(B)(ii) by 18%. These changes take effect January 1, 2026, and the Commissioner of Social Security must recompute benefits for people already eligible before January 1, 2026.
COLAs switch to CPI–E for seniors
The bill redefines the relevant Consumer Price Index as the Consumer Price Index for Elderly Consumers, or CPI–E, published by the Bureau of Labor Statistics. BLS must publish CPI–E monthly beginning in July of the calendar year following enactment, and the new COLA rule applies to computation quarters ending on or after September 30 of the second calendar year after enactment.
Minimum benefit tied to poverty level
For people who become eligible after 2025 and have more than 10 years of work, the minimum monthly benefit becomes the greater of the current minimum or an alternative amount based on the annual poverty guideline. A 'year of work' is specifically defined as a year with 4 quarters of coverage, and for 2026 the poverty benchmark is the 2025 poverty guideline for a single individual.
Student child benefits extended to age 22
The bill extends child insurance benefits for full-time students from age 19 to age 22, effective January 1, 2026. It covers attendance at an elementary school up to age 19, a secondary school, or a school described in section 102 of the Higher Education Act of 1965, but excludes people paid by an employer to attend school and people incarcerated for a felony conviction.
Payroll and self-employment taxes reach $250,000
The bill applies Social Security payroll taxes to remuneration above the contribution and benefit base up to $250,000, and applies the same upper range to self-employment income. Both tax changes take effect January 1 of the first calendar year following enactment.
Investment income tax jumps to 16.2%
The bill increases the tax rate under Internal Revenue Code section 1411 from 3.8% to 16.2% and expands it to include active trade or business income. This higher tax applies to taxable years beginning after the date of enactment, and 62% of those section 1411 revenues would be appropriated to the new Social Security Trust Fund.
Who benefits from H.R. 1700?
Current and future Social Security beneficiaries
People receiving or qualifying for old-age or disability benefits would benefit from the formula change from 90% to 95% and the 18% increase tied to section 215(a)(1)(B)(ii). The bill explicitly requires recomputation for people eligible before January 1, 2026, so the increase is not limited to new beneficiaries.
Lifetime low earners with long work histories
Workers who become eligible after 2025 and have more than 10 years of work — with each year of work defined as 4 quarters of coverage — would get a stronger minimum monthly benefit. That alternative minimum is tied to the poverty guideline for a single individual, using the 2025 poverty guideline for 2026 and wage indexing after that.
Students ages 19 through 21 receiving child benefits
Full-time students could continue receiving child's insurance benefits until age 22 instead of losing eligibility at age 19. This would help eligible students in secondary school or institutions covered by section 102 of the Higher Education Act of 1965, beginning January 1, 2026.
Older beneficiaries affected by inflation
Retirees and disabled beneficiaries may see larger annual adjustments over time because cost-of-living increases would be based on CPI–E, a price index specifically for elderly consumers published by the Bureau of Labor Statistics. The switch starts applying to quarters ending on or after September 30 of the second calendar year after enactment.
Who is affected by H.R. 1700?
Workers with wages above the payroll tax cap
Employees and employers would face Social Security payroll taxes on remuneration above the contribution and benefit base up to $250,000. That creates a new taxed band above the current cap starting January 1 of the first calendar year after enactment.
Self-employed people earning above the current cap
People with net earnings from self-employment above the contribution and benefit base would owe Social Security tax on income up to $250,000. This starts January 1 of the first calendar year after enactment.
Investors and business owners subject to section 1411
Taxpayers subject to the net investment income tax would see the rate rise from 3.8% to 16.2%, and the tax would newly include active trade or business income. The change applies for taxable years beginning after enactment.
Students excluded from extended child benefits
Some students would still be barred from the age-22 extension, including anyone paid by an employer to attend school and anyone incarcerated for a felony conviction. Those exclusions remain in place even though the general student eligibility age rises from 19 to 22.
H.R. 1700 Common Questions
How much would the investment income tax increase under the Social Security Expansion Act?
It would raise the section 1411 tax from 3.8% to 16.2% for taxable years beginning after enactment, under the Social Security Expansion Act (Section 8).
Does HR 1700 tax wages above the Social Security payroll tax cap up to $250,000?
Yes. According to HR 1700 Section 6, Social Security payroll taxes would apply to remuneration above the contribution and benefit base up to $250,000, starting January 1 of the first calendar year after enactment.
Can self-employed people be taxed on Social Security income above the wage cap up to $250,000 under HR 1700?
Yes. Under the Social Security Expansion Act (Section 7), self-employment income above the contribution and benefit base up to $250,000 would be subject to the tax beginning January 1 of the first calendar year after enactment.
How much would Social Security benefits increase in 2026 under the Social Security Expansion Act?
The bill raises the first benefit formula percentage from 90% to 95%, and for people newly eligible after 2025 it also increases a bend point amount by 18%, under the Social Security Expansion Act (Section 2).
Can current Social Security recipients get their benefits recomputed under HR 1700?
Yes. Under the Social Security Expansion Act (Section 2), the Commissioner must recompute primary insurance amounts for people who became eligible before January 1, 2026.
Does the Social Security Expansion Act use CPI-E for Social Security COLAs?
Yes. Under the Social Security Expansion Act (Section 3), COLAs would be based on the Consumer Price Index for Elderly Consumers, with the change applying to computation quarters ending on or after September 30 of the second calendar year after enactment.
What are the minimum Social Security benefit rules for low earners under HR 1700?
For people eligible after 2025 with more than 10 years of work, the minimum monthly benefit must be at least the greater of the current minimum or an alternative amount tied to the poverty guideline, according to HR 1700 Section 4.
Can children get Social Security student benefits until age 22 under the Social Security Expansion Act?
Yes. The bill extends child insurance benefits for full-time students from age 19 to age 22 starting January 1, 2026, under the Social Security Expansion Act (Section 5).
How does HR 1700 define a year of work for the new minimum Social Security benefit?
Under the Social Security Expansion Act (Section 4), a year of work means a year with 4 quarters of coverage credited.
Which students are excluded from the age-22 Social Security child benefit extension in HR 1700?
HR 1700 excludes people paid by an employer to attend school and people confined for a felony conviction from the full-time student definition, under the Social Security Expansion Act (Section 5).
Based on H.R. 1700 bill text
HR1700 Legislative Journey
House: Committee Action
Feb 27, 2025
Referred to the Subcommittee on Railroads, Pipelines, and Hazardous Materials.
About the Sponsor
Val Hoyle
Democrat, Oregon's 4th congressional district · 3 years in Congress
Committees: Natural Resources, Transportation and Infrastructure
View full profile →
Cosponsors (36)
All 36 cosponsors are Democrats. Cosponsors represent 20 states: Arizona, California, District of Columbia, and 17 more.
Janice Schakowsky
Democrat · IL
Troy Carter
Democrat · LA
Greg Casar
Democrat · TX
Judy Chu
Democrat · CA
Steve Cohen
Democrat · TN
Christopher Deluzio
Democrat · PA
Lois Frankel
Democrat · FL
Pramila Jayapal
Democrat · WA
Ro Khanna
Democrat · CA
James McGovern
Democrat · MA
Gwen Moore
Democrat · WI
Jerrold Nadler
Democrat · NY
Committee Sponsors
Transportation and Infrastructure Committee
6 of 65 committee members cosponsored
Education and Workforce Committee
4 of 35 committee members cosponsored
Ways and Means Committee
2 of 45 committee members cosponsored
51 Democrats across these committees haven't cosponsored yet. Mobilize their constituents
What laws does H.R. 1700 change?
14 changes
Sections Amended
Section 215(i) of Social Security Act (42 U.S.C. 415(i))
adding at the end the following: ``(6) Any provision of law (other than in this title, title VIII, or title XVI) which provides for adjustment of an amount based on a change in benefit amounts resulting from a determination made under this subsection shall be applied and administered without regard to the amendments made by section 3 of the Social Security Expansion Act, and, for purposes of making such an adjustment under such a provision, this subsection as in effect on the day before the date of enactment of such Act shall continue to apply
Section 3121(a) of Internal Revenue Code of 1986
read as follows: ``(1) in the case of taxes imposed by sections 3101(a) and 3111(a), for any calendar year in which the contribution and benefit base (as determined under section 230 of the Social Security Act) is less than $250,000, so much of the remuneration (other than remuneration referred to in the succeeding paragraphs of this subsection) with respect to employment that has been paid to an individual by an employer during the calendar year as exceeds such contribution and benefit base but does not exceed $250,000;''
Section 3121 of Internal Revenue Code of 1986
adding at the end the following new subsection: ``(aa) Special Rules for Successor Employers
Section 1402(b) of Internal Revenue Code of 1986
read as follows: ``(1) in the case of the tax imposed by section 1401(a) for any taxable year beginning in a calendar year in which the contribution and benefit base (as determined under section 230 of the Social Security Act) is less than $250,000, the excess (if any) of-- ``(A) so much of the net earnings from self- employment which is in excess of-- ``(i) an amount equal to the contribution and benefit base (as determined under section 230 of the Social Security Act) which is effective for the calendar year in which such taxable year begins, minus ``(ii) the amount of the wages paid to such individual during such taxable years, over ``(B) the sum of-- ``(i) the excess (if any) of-- ``(I) the net earning from self- employment reduced by the excess (if any) of subparagraph (A)(i) over subparagraph (A)(ii), over ``(II) $250,000, reduced by such contribution and benefit base, plus ``(ii) the amount of the wages paid to such individual during such taxable year in excess of such contribution and benefit base and not in excess of $250,000; or''
Section 1411 of Internal Revenue Code of 1986
striking ``3
Section 1411(c) of such Code
striking paragraphs (2), (3), and (4) and by redesignating paragraphs (5) and (6) as paragraphs (2) and (3), respectively
H.R. 1700 Quick Facts
- Committee
- Transportation and Infrastructure
- Chamber
- House
- Policy
- Social Welfare
- Introduced
- Feb 27, 2025
Assigned to Subcommittee on Railroads, Pipelines, and Hazardous Materials. for review
Feb 27, 2025
Official Sources
Official Congress.gov page for the Social Security Expansion Act with bill text, actions, and status.
SSA’s official retirement benefits page provides background on benefit calculations relevant to the bill’s proposed increase in Social Security benefits.
SSA’s disability benefits page is relevant because the bill increases benefits for disability insurance beneficiaries and requires recomputation for some current recipients.
BLS’s CPI-E page is the official federal source for the Consumer Price Index for Elderly Consumers used in the bill’s COLA provision.
SSA’s page on benefits for children is relevant to the bill’s extension of student child benefits through age 22.
HHS publishes the federal poverty guidelines that the bill uses to set a stronger minimum Social Security benefit for low earners.
IRS guidance on Social Security and Medicare withholding rates helps explain the payroll tax cap and the bill’s proposal to tax wages above the current contribution and benefit base.
IRS’s official NIIT guidance is directly relevant to the bill’s proposal to increase the section 1411 tax rate and broaden its application.
SSA’s official contribution and benefit base page explains the wage cap that the bill would reopen for payroll and self-employment taxes up to $250,000.
H.R. 1700 Bill Text
“To enhance Social Security benefits and ensure the long-term solvency of the Social Security program.”
Source: U.S. Government Publishing Office
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