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S 4396

Social Security Caregiver Credit Act of 2026

119th Congress Introduced by Kirsten Gillibrand

The bill grants deemed wages for unpaid caregivers of dependents, boosting Social Security benefits for up to 60 months of qualifying caregiving.

Introduced in Senate
1
WeVote Research Nonpartisan
Bill Summary · S 4396

Summary: Social Security Caregiver Credit Act of 2026 (S. 4396, 119th Congress)

Purpose and intent

  • Introduces a new provision to credit individuals who serve as caregivers for dependent relatives with deemed wages for up to 60 qualifying months (up to five years) of caregiving.
  • Aims to recognize unpaid caregiving as earned work for Social Security purposes, improving retirement security and addressing the exclusion of professional/home-care workers who care for family members.

Key provisions

Creation of a new credit (Section 235)

  • Adds a new section to Title II of the Social Security Act establishing “Deemed Wages for Caregivers of Dependent Relatives.”
  • Definitions:
    • Qualifying month: A month in which the individual provides care for at least 80 hours to a dependent relative without monetary compensation, with two important exclusions and conditions:
    • A qualifying month does not count after the individual reaches retirement age.
    • Care provided to certain eligible veterans under specific VA provisions is not considered monetary compensation for this purpose.
    • Dependent relative: A close family member (child, grandchild, niece, nephew, or in loco parentis relation) under 12 years old, or an older dependent with chronic disability (including extended family in loco parentis) who is a chronically dependent individual.
    • Chronically dependent individual: Requires dependence on another person for at least two activities of daily living (ADLs) or instrumental activities of daily living (IADLs) and cannot perform these activities without assistance.
    • ADLs: Eating, bathing, dressing, toileting, transferring.
    • IADLs: Meal planning/preparation, managing finances, shopping, household chores, communication, transportation/community participation.

Deemed wages formula (Section 235(b))

  • For purposes of monthly Social Security benefits (and lump-sum death payments) after December 2026:
    • Each qualifying month is treated as though the caregiver earned a specified amount in wages, in addition to any actual wages earned.
    • If no actual wages were paid in a qualifying month, the deemed amount equals 50% of the national average wage index (NAWI) for the second calendar year prior to the month.
    • If there were actual wages, the deemed amount equals the excess of the amount from the above provision over 12 times the actual wages earned in that month.
  • Limits:
    • Only the last 60 qualifying months for an individual are counted if there are more than 60 qualifying months in total.
  • Impact on benefits:
    • Increases monthly Social Security benefits and/or lumpsum death payments by the deemed wages, potentially enhancing future retirement and survivor benefits.

Administrative and regulatory requirements (Section 235(c))

  • Within one year of enactment, the Commissioner of Social Security must issue regulations to implement the section, prevent fraud, and establish certification procedures.
  • Application/certification requirements:
    • An applicant must provide:
    • The dependent relative’s name and identifying information for the caregiving month.
    • If the dependent relative is not a child under 12, a physician’s documentation explaining chronic dependency.
    • Any other information the Commissioner requires to verify status.
    • For every qualifying month after the first 12 consecutive qualifying months, the applicant must certify that information has not changed.

Conforming amendment (Section 235(d))

  • Amends Section 209(k)(1) to incorporate the new deemed wage provision, ensuring it interacts correctly with existing wage and benefit calculations.

Who is affected

  • Unpaid caregivers who provide at least 80 hours per month of care to a dependent relative meeting the chronic dependency criteria.
  • Individuals who currently do not receive Social Security or Medicare benefits for the care they provide to family members under state or local programs (the bill’s findings emphasize addressing this exclusion).
  • The Social Security Administration (SSA) would administer the new credit, including the regulatory framework and application requirements.

Timeline and procedural notes

  • Effective date for deemed wages applies to months after December 2026.
  • SSA regulations required within one year of enactment.
  • The bill was introduced in the Senate on April 27, 2026, and referred to the Committee on Finance. Co-sponsor: Kirsten Gillibrand.

Additional context

  • The bill includes findings about the importance of caregiving and the need to bolster retirement security for unpaid caregivers.
  • It references ongoing concerns about trust funds (Social Security) and broader policy debates about recognizing unpaid care within the Social Security framework.

If you’d like, I can compare this bill to existing Social Security credit mechanisms or provide a potential impact assessment with rough benefit estimates based on hypothetical caregiver scenarios.

Compiled from official sources — confirm details with the bill’s official record.

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