New Social Security bill could boost retirement payments for millions of Americans who left work to care for children or aging parents

Texas – Millions of Americans who stepped away from work to raise children, care for aging parents, or support loved ones with disabilities could eventually see larger Social Security payments under a new proposal now moving through Congress. The plan, known as the Social Security Caregiver Credit Act, is drawing attention because it targets a long-running problem inside the retirement system: unpaid caregivers often sacrifice future financial security while helping family members at home.

The issue has become especially important in large states with growing retiree populations, including Texas. According to the latest Social Security Administration data, Texas is home to roughly 4.8 million people receiving social security benefits. That puts the state among the top Social Security states in the country, behind only California and Florida.

Those monthly payments amount to billions of dollars flowing into local economies across Texas, from major cities to smaller rural communities. Most beneficiaries receive retirement payments, while others qualify through disability or survivor programs. As Texas continues growing — especially its older population — the number of people depending on Social Security is expected to climb even higher in the years ahead.

At the center of the new debate is the way Social Security benefits are calculated. While many people think the system simply tracks how long someone worked, the formula is more complicated. Benefits are based largely on a worker’s highest-earning 35 years. If someone has fewer than 35 years of earnings, the system fills the missing years with zeroes.

That becomes a major problem for caregivers.

People who leave the workforce for several years to care for family members often return with gaps in their earnings history. Those zero-income years can lower their average lifetime earnings and reduce monthly retirement checks later in life.

The new legislation aims to soften that blow.

Under the proposal introduced by Senators Kirsten Gillibrand and Chris Murphy, eligible caregivers could receive Social Security credits for time spent outside the workforce providing unpaid care.

How the proposal would work

The bill would allow qualified caregivers to add up to five years — or 60 months — of credited income to their Social Security records. To qualify, a person would need to provide at least 80 hours of unpaid care per month.

Instead of those years counting as zero income, the government would assign earnings equal to roughly half of the national average wage. The purpose is not to artificially inflate benefits for high earners, but to prevent caregivers from being financially punished for years spent helping others.

Supporters argue the proposal reflects economic reality. Family caregiving often saves the country enormous healthcare and long-term care costs, yet the people doing the work frequently face reduced retirement security themselves.

The scale of the issue is massive.

A joint report from AARP and the National Alliance for Caregiving estimates that around 63 million adults in the United States provide unpaid care for children, older relatives, or family members with disabilities. That equals nearly one in four adults nationwide.

Many of those people reduce their work hours or leave jobs entirely. Over time, the financial damage can stretch far beyond lost paychecks. Lower earnings histories can follow workers for decades and directly reduce Social Security payments after retirement.

Women could see the largest impact from the proposed change because they make up a significant share of unpaid caregivers. According to a survey from the nonprofit Catalyst, nearly half of women who voluntarily left jobs in 2025 said caregiving responsibilities played the biggest role in their decision.

That creates more missing years in Social Security calculations and often leaves women with lower retirement income than men.

If the bill becomes law, those missing years could partially be replaced with credited earnings, potentially leading to larger monthly checks in retirement. Even relatively small increases could matter greatly over time, especially for seniors already living on tight budgets.

The proposal is also part of a broader push in Washington to address financial strain on caregivers. Other ideas being discussed in Congress include making it easier for caregivers to continue saving into retirement accounts like Roth IRAs while temporarily out of the workforce.

Still, major obstacles remain.

The Social Security trust fund is already facing long-term financial pressure, with projections showing funding challenges arriving in the 2030s. Because of that, lawmakers remain divided over expanding benefits without a clear funding solution attached.

Similar versions of the caregiver credit proposal have appeared before in Congress but failed to become law. This latest attempt must still move through committees, pass both chambers of Congress, and eventually receive presidential approval before any changes could happen.

Even if approved, Americans would not see immediate increases. The benefits would build gradually over time by improving earnings records used in future retirement calculations.

For now, the debate is highlighting a growing reality affecting millions of families across the country: caregiving may be unpaid, but its financial consequences can last a lifetime.