____ Act

Bill Number

H.R. 571

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Social Welfare

Status

Introduced

Latest Action

2025-01-21: Referred to the House Committee on Ways and Means.

Last Updated

2025-06-04T18:35:57Z

AI-Generated Summary

Purpose

This legislation aims to introduce an income-based eligibility test (means-testing) for certain child's insurance benefits under the Social Security Act. It seeks to limit these benefits for families where an elderly parent receiving retirement or disability benefits has relatively high earnings, ensuring that such benefits are not provided to higher-income households.

Key Provisions

• Amendment to Social Security Act: Adds a new rule to Section 202(d)(7) of the Act, which governs child's insurance benefits.
• A child aged 18 or older cannot qualify as a "full-time elementary or secondary school student" (a status that extends eligibility for benefits beyond age 18) if this status would provide benefits based on the earnings of a parent who:
• Is receiving old-age (retirement) or disability insurance benefits.
• Is at least 67 years old.
• Has more than $125,000 in earnings for the relevant taxable year (calculated under existing Social Security rules for benefit adjustments).
• Effective Date: The changes apply to benefits paid for any month starting after the date the bill is enacted into law.

Significant Changes to Existing Law

• Currently, child's insurance benefits can extend to age 19 for full-time students in elementary or secondary school, regardless of the parent's income level, as long as the parent is eligible for Social Security benefits.
• This bill introduces the first income threshold specifically for these student benefits when the parent is 67 or older and still earning income, effectively reducing or eliminating benefits for children in higher-income families. No such means-testing previously existed for this category of benefits.

Potential Impacts

• On Government Agencies: The Social Security Administration (SSA) would need to verify parental earnings annually for affected cases, potentially increasing administrative workload and costs initially, but leading to long-term savings by reducing benefit payouts (estimated based on the income cutoff, though not specified in the bill).
• On Citizens: Families with an elderly parent (67+) earning over $125,000 may lose child's benefits for adult children (18+) in school, affecting financial support for education. Lower- and middle-income families remain unaffected, potentially narrowing the program's focus to needier households.
• On International Relations: No direct impacts, as this is a domestic social welfare policy.

Main Stakeholders Affected

• Elderly Beneficiaries (Parents): Individuals aged 67+ receiving Social Security who have high earnings; they may indirectly face reduced family benefits.
• Adult Children (Students): Those aged 18+ in full-time elementary or secondary school relying on parental Social Security-derived benefits; higher-income families' children would lose eligibility.
• Social Security Administration: Responsible for implementing and enforcing the new income verification rules.
• Families and Taxpayers: Broader group, as reduced benefits could lower overall Social Security expenditures, potentially stabilizing the program's finances.

Notable Legal, Constitutional, or Political Implications

• Legal: The change aligns with existing Social Security provisions for benefit calculations but introduces a novel income test, which could lead to legal challenges over fairness or administrative feasibility. It does not alter core entitlement rights but modifies eligibility criteria.
• Constitutional: No apparent violations of equal protection or due process, as the means-test is rationally tied to program sustainability; however, it could raise questions about uniform application of benefits.
• Political: Means-testing Social Security elements is a debated topic, often viewed as a step toward fiscal reform but criticized for eroding the program's universal nature. This could spark discussions on income inequality and support for education among working retirees.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Griffith, H. Morgan [R-VA-9]

Recent Actions

• 2025-01-21: Referred to the House Committee on Ways and Means.
• 2025-01-21: Introduced in House
• 2025-01-21: Introduced in House

Bill Versions

• ____ Act — issued 2025-01-21 — PDF (2 pages)