Keep Billionaires Out of Social Security Act

Bill Number

S. 2763

Origin Chamber

Senate

Congress

119th Congress, Session 1

Status

Introduced

Latest Action

2025-09-10: Read twice and referred to the Committee on Finance.

Last Updated

2025-09-17T02:53:18Z

AI-Generated Summary

Purpose of the Legislation

The "Keep Billionaires Out of Social Security Act" (S. 2763) aims to safeguard the independence and operations of the Social Security Administration (SSA), ensure stable and protected funding for its administrative costs, enhance privacy protections for beneficiary data, prevent closures of service offices, improve customer service and access to benefits (especially for people with disabilities), and provide grants to support applicants and beneficiaries. It seeks to shield SSA programs from external interference, such as from certain executive branch entities or orders, while codifying policies to make benefits administration more efficient and equitable.

Key Provisions

The bill amends Title II of the Social Security Act and related laws through 11 main sections:

• Exemption from Department of Government Efficiency (DOGE) and Certain Executive Orders (Sec. 2): Excludes SSA, its personnel, systems, and benefits programs (including Old-Age, Survivors, and Disability Insurance) from the authority of DOGE (a proposed efficiency entity) and specific executive orders (e.g., Nos. 14158, 14210, 14219, 14222) aimed at government reorganization or cuts.

• Restrictions on Access to Beneficiary Data (Sec. 3): Prohibits political appointees (high-level temporary officials) and special government employees (short-term hires) from accessing SSA's "beneficiary data systems" (databases handling Social Security numbers, eligibility, payments, and personal/health/tax info), except for those in roles focused on benefit delivery. Introduces civil penalties (up to $5,000 per violation or actual damages, plus attorney fees), criminal penalties (fines up to $10,000 and up to 5 years imprisonment for willful violations), and requires SSA's Inspector General to investigate and report breaches to Congress. Retains pre-2025 privacy regulations as law.

• Limits on Personnel Changes (Sec. 4): Restricts SSA from moving jobs from "competitive service" (standard merit-based hiring) to "excepted service" (positions exempt from some hiring rules, like policy roles) without Office of Personnel Management approval. Caps transfers during a presidential term at 1% of SSA staff or 5 employees (whichever is greater), requires employee consent for certain moves, and mandates annual congressional reports on changes.

• Death Master File Updates (Sec. 5): Requires SSA to add only deceased individuals to the Death Master File (a database used to stop payments to the deceased) based on "clear and convincing evidence" (strong proof like official death certificates). Mandates notifications to partner agencies of errors.

• Maintenance of Offices and Services (Sec. 6): Prohibits closing or reducing services at field, hearing, or rural contact offices existing as of January 1, 2025 (except for emergencies or relocations). Requires maintaining 2024 staffing levels, no hiring freezes, and improvements in phone wait times within 12 months. Allows new offices or expansions but bans limiting public access. Mandates online application options in accessible formats. Applies retroactively to reverse inconsistent actions.

• Reestablishment of Key Offices (Sec. 7): Creates or restores three offices within SSA, led by career (non-political) appointees:
• Office of Civil Rights and Equal Opportunity: Handles discrimination complaints, affirmative action, and accessibility under laws like the Americans with Disabilities Act.
• Office of Transformation: Oversees policy, processes, and IT projects for better service delivery.
• Office of Analytics, Review, and Oversight: Reviews program quality, recommends improvements, and combats fraud.

• Permanent Funding for Administrative Expenses (Sec. 8): Establishes ongoing appropriations equal to 1.2% of projected benefit payments under Titles II, VIII (special veteran benefits), and XVI (Supplemental Security Income), funded from trust funds and general Treasury. Excludes these costs from federal budget caps, resolutions, and allocations to prevent cuts. Maintains congressional oversight via appropriations committees. Effective October 1, 2025.

• Additional Funding for Customer Experience (Sec. 9): Provides $2 billion (fiscal years 2026–2035) for raising awareness of child disability benefits, reducing claim backlogs (especially disability-related), modernizing IT without disrupting services, and expanding online tools (e.g., SSI applications). Requires annual congressional reports.

• Overpayment Recovery Limits (Sec. 10): Codifies a policy limiting SSA deductions from monthly benefits to recover overpayments (extra money paid by error) to the greater of 10% of the benefit or $10, unless due to fraud or if the recipient waives it for faster repayment. Applies to determinations after March 25, 2024.

• State Grants for Rights Protection (Sec. 11): Authorizes $25 million annually (fiscal years 2026–2030) for grants to state "protection and advocacy systems" (independent groups aiding people with disabilities) to provide info, advice, appeals help, and advocacy for SSI/SSDI (disability benefits) applicants and recipients. Minimum grants: $200,000 for most states, $100,000 for territories; adjustable for inflation. Requires annual reports.

• Community-Based Organization Grants (Sec. 12): Appropriates $15 million annually (fiscal years 2026–2030) for at least 10 five-year grants ($500,000 each) to nonprofits assisting disabled individuals with disability benefit applications, appeals, and access. Grantees must include lawyers, experts, and beneficiary representatives; applications need regional plans and accessibility assurances. Requires annual/final reports and a separate evaluation grant.

Significant Changes to Existing Law

• Funding Stability: Shifts SSA administrative costs from annual appropriations (subject to budget fights) to automatic, permanent funding tied to benefit levels, excluding them from discretionary caps and pay-go rules—reversing reliance on variable congressional funding.
• Independence from Executive Actions: Newly exempts SSA from DOGE and related orders, limiting presidential influence over operations (previously, such entities could recommend cuts or reorganizations).
• Privacy Enhancements: Adds specific bans and penalties for data access by political figures, building on existing disclosure rules; requires evidence-based Death Master File entries to prevent erroneous benefit stops.
• Personnel and Structure Protections: Curbs ability to politicize staffing via excepted service shifts; mandates career-led offices for civil rights, transformation, and oversight, restoring pre-existing structures.
• Service and Recovery Rules: Locks in office numbers/staffing at 2024/2025 levels, retroactively; caps overpayment deductions (previously up to 100% in some cases); introduces new grant programs for advocacy, absent in current law.
• Budget Process Reforms: Amends the Congressional Budget Act and Budget Enforcement Act to isolate SSA costs from overall deficit calculations.

Potential Impacts

• On Government Agencies: SSA gains autonomy, stable funding (potentially $10–15 billion annually based on 1.2% of benefits), and resources to hire/retain staff, modernize IT, and reduce backlogs—easing pressure from budget constraints. Other agencies (e.g., DOGE, OPM) face limits on oversight. Congress retains budget control but with less flexibility for cuts.
• On Citizens: Beneficiaries (over 70 million, including 10+ million disabled) benefit from better privacy, faster claims processing, maintained local access, gentler overpayment recovery (protecting low-income recipients), and new support via grants—potentially increasing successful applications and reducing appeals. Families with disabled children gain awareness campaigns. No direct international relations impacts, as it focuses on domestic programs.
• Broader Effects: Could lower administrative delays (e.g., disability claims average 200+ days currently), but increased funding might raise overall federal spending without offsets.

Main Stakeholders Affected

• SSA Employees and Leadership: Protected from transfers, hiring freezes, and political interference; career staff lead key offices.
• Social Security Beneficiaries: Especially disabled individuals, SSI/SSDI applicants (millions affected), who gain privacy safeguards, easier access, and advocacy support.
• Political Appointees and Executive Entities: Restricted data access and influence (e.g., DOGE teams, special employees).
• States and Nonprofits: Protection systems and community organizations receive grants to aid constituents, expanding their roles.
• Congress and Taxpayers: Enhanced oversight/reporting; funding from trust funds/general revenue shifts costs without new taxes but insulates from cuts.
• Applicants with Disabilities: Direct aid for applications/appeals, potentially improving equity for underserved groups.

Notable Legal, Constitutional, or Political Implications

• Legal: Strengthens data privacy under the Social Security Act with enforceable penalties and investigations, potentially increasing lawsuits for breaches; codifies overpayment rules to limit SSA discretion, reducing administrative burdens but inviting challenges if fraud rises. New grants expand advocacy without altering core eligibility.
• Constitutional: Reinforces SSA's quasi-independent status (as an executive agency) by limiting executive overreach, aligning with separation of powers by protecting congressional intent for entitlement programs; employee consent requirements uphold due process in personnel actions.
• Political: Sponsored by 28 Democratic senators (led by Mr. Sanders), it counters perceived threats from efficiency initiatives (e.g., DOGE, tied to "billionaires" in the title), promoting program stability amid partisan budget debates. Could spark litigation over executive order exemptions or funding exclusions, influencing future administrations' reform efforts. Requires GAO studies and reports for transparency.

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

Sponsor

Sen. Sanders, Bernard [I-VT]

Cosponsors (29)

Sen. Wyden, Ron [D-OR], Sen. Schumer, Charles E. [D-NY], Sen. Blumenthal, Richard [D-CT], Sen. Gillibrand, Kirsten E. [D-NY], Sen. Smith, Tina [D-MN], Sen. Warren, Elizabeth [D-MA], Sen. Reed, Jack [D-RI], Sen. Kim, Andy [D-NJ], Sen. Markey, Edward J. [D-MA], Sen. King, Angus S., Jr. [I-ME], Sen. Welch, Peter [D-VT], Sen. Klobuchar, Amy [D-MN], Sen. Coons, Christopher A. [D-DE], Sen. Baldwin, Tammy [D-WI], Sen. Hirono, Mazie K. [D-HI], Sen. Padilla, Alex [D-CA], Sen. Durbin, Richard J. [D-IL], Sen. Hickenlooper, John W. [D-CO], Sen. Van Hollen, Chris [D-MD], Sen. Merkley, Jeff [D-OR], Sen. Whitehouse, Sheldon [D-RI], Sen. Kaine, Tim [D-VA], Sen. Gallego, Ruben [D-AZ], Sen. Bennet, Michael F. [D-CO], Sen. Booker, Cory A. [D-NJ], Sen. Murray, Patty [D-WA], Sen. Warner, Mark R. [D-VA], Sen. Alsobrooks, Angela D. [D-MD], Sen. Heinrich, Martin [D-NM]

Recent Actions

• 2025-09-10: Read twice and referred to the Committee on Finance.
• 2025-09-10: Introduced in Senate

Bill Versions

• Keep Billionaires Out of Social Security Act — issued 2025-09-10 — PDF (40 pages)