Schatz introduces legislation to expand Social Security benefits

US Sen. Brian Schatz has introduced legislation aimed at expanding Social Security benefits for seniors and families in Hawaiʻi and across the nation.

The Safeguarding American Families and Expanding Social Security Act, or SAFE Social Security Act, seeks to increase average monthly benefits by more than $150. The bill also proposes adjusting how cost-of-living adjustments are calculated to better reflect the expenses of retirees, extending the life of the Social Security trust fund and removing the wage cap on payroll contributions.

According to Schatz, more than 280,000 people in Hawaiʻi, or more than one in six residents, rely on Social Security benefits. The senator noted that the number of seniors in the state is expected to grow to more than 20% of the population by 2040.

“Social Security is the most successful safety net program in American history,” Schatz said. “My bill will expand Social Security, put more money in the hands of seniors who rely on it, strengthen the program for the next generation of retirees, and make sure everyone pays into the system equally.”

Specifically, the legislation proposes to phase out the payroll tax cap so that taxes apply to every dollar of wages earned. It would also use the Consumer Price Index for the Elderly to update the annual cost-of-living adjustment.

Currently, the Social Security Administration sets a limit on the amount of earnings subject to the Social Security payroll tax. For 2025, that cap is $176,100, meaning any wages earned above that amount are not taxed for Social Security purposes. The cap, which applies federally to all states including Hawaii, is determined annually based on the national average wage index. Schatz’s bill would phase out this cap so that the tax applies to every dollar of wages earned.

Jody Calemine, the director of Government Affairs for the AFL-CIO, said that the bill addresses solvency and fairness.

“Social Security is the cornerstone of a secure retirement for working families,” Calemine said. “The SAFE Social Security Act, which lifts the tax cap for high earners, is the fairest and most equitable way to extend the solvency of the program while also improving benefits for everyone who has spent years contributing to the economy. This is critical legislation that safeguards the future of a crucial program while also addressing the economic concerns of everyday voters.”

Richard Fiesta, the executive director of the Alliance for Retired Americans, said the bill would ensure all Americans pay their fair share.

“We applaud Senator Schatz for introducing this important legislation, which will boost Social Security benefits for today’s retirees while strengthening the program’s long-term finances so future generations can count on it as well,” Fiesta said. “The SAFE Social Security Act will ensure that all Americans, including the wealthy, pay their fair share into the system, and that workers who leave the workforce to care for loved ones are not penalized when they reach retirement.”

The legislation is supported by the AFL-CIO, the National Committee to Preserve Social Security and Medicare, Social Security Works, the Alliance for Retired Americans and the American Federation of Teachers.