The Social Security Expansion Act seeks to strengthen the Social Security program by both enhancing benefits for recipients and securing its financial future. Key benefit improvements include an across-the-board increase , achieved by raising the first bend point percentage in the benefit formula from 90 percent to 95 percent and applying an 18 percent increase to the bend point amount for those eligible after 2025. These changes are set to take effect on January 1, 2026. The bill also modifies how cost-of-living adjustments (COLAs) are calculated, mandating the use of the Consumer Price Index for Elderly Consumers (CPI-E) , which typically reflects higher inflation experienced by seniors. Furthermore, it establishes a new minimum benefit for lifetime low earners , ensuring that individuals with more than 10 years of work receive a benefit tied to a percentage of the annual poverty guideline, increasing with years of service up to 125 percent for 30 or more years of work. Eligibility for child's insurance benefits is also expanded under this legislation. It extends benefits for children who are full-time students at educational institutions , including higher education, up to age 22, for those whose parents are disabled or deceased. This provision, along with related changes to the Railroad Retirement Act, will apply to benefits payable from January 1, 2026. To finance these enhancements and ensure solvency, the bill introduces several revenue-generating measures. It imposes payroll and self-employment taxes on earnings above $250,000 , effectively removing the current cap on taxable earnings for high-income individuals while creating a "donut hole" where earnings between the existing contribution base and $250,000 would not be taxed. These tax changes will apply from January 1 of the first calendar year after enactment. Additionally, the legislation significantly increases and broadens the scope of the Net Investment Income Tax (NIIT) . The NIIT rate is raised from 3.8 percent to 16.2 percent, and its application is expanded to include active trade or business income that was previously exempt. This tax is also renamed to reflect its broader purpose as an "Additional Tax on Unearned Income in Lieu of Social Security and Medicare Taxes," taking effect for taxable years beginning after enactment. Finally, the bill streamlines the program's financial structure by merging the existing Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund into a single Social Security Trust Fund . A significant portion (62 percent) of the revenue generated from the expanded investment income tax will be appropriated to this new combined trust fund, alongside existing payroll and self-employment tax contributions, to bolster the program's long-term stability.