The Social Security Administration (SSA) has celebrated the passage of President Donald Trump‘s One Big Beautiful Bill Act, describing it as “landmark” legislation that provides “long-awaited tax relief to millions of older Americans.”
On Thursday, Congress passed the legislation in a 218-214 vote in the House, and the bill now awaits Trump’s signature in a White House ceremony on Friday.
The One Big Beautiful Bill Act will ensure that almost 90 percent of Social Security recipients will no longer be required to pay income taxes on their benefits, according to the SSA.
“This is a historic step forward for America’s seniors,” Social Security Commissioner Frank Bisignano said in a news release. “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”
Why It Matters
The SSA’s response comes amid fierce political debate over the bill’s long-term consequences for retirees and the federal budget. While Trump initially promised to nix Social Security federal income taxes for beneficiaries, the SSA confirmed that the bill instead creates a targeted deduction that varies by income.
What To Know
The SSA specified that the legislation enacts a $6,000 tax deduction for individuals aged 65 or older with income up to $75,000—or up to $150,000 for married couples. Above these thresholds, the deduction phases out, ending at incomes of $175,000 for individuals and $250,000 for couples. The deduction is temporary and set to expire after 2028 unless extended by lawmakers.
On X, formerly Twitter, the White House said on Monday that under the bill, 51.4 million seniors—88 percent of all seniors receiving Social Security income—would not pay any tax on their benefits income as a result of the change.
The “big, beautiful bill” also drew intense criticism for its sharp cuts to Medicaid and other low-income programs, components that Democrats say threaten essential safety nets that millions rely on for basic health and nutrition. The bill’s overall fiscal impact, according to the Congressional Budget Office, is projected to result in $3.3 trillion in additional deficit spending over the next decade.
What People Are Saying
President Donald Trump said in Iowa on Thursday after the bill’s passage: “I think when you go over the bill, it was very easy to get them to a ‘yes.’ … Biggest tax cut in history.”
Karla Dennis, an enrolled tax agent and the CEO of the tax strategy firm KDA Inc., told Newsweek: “I really believe we need lasting change for seniors, not just quick fixes or one-time payments that grab attention but don’t solve anything long term. We should stop taxing Social Security for people who are living on moderate incomes. Seniors making under $100,000 a year should not be taxed. The way Social Security is taxed today doesn’t match how people earn income in retirement today.”
What Happens Next
Trump is scheduled to sign the “One Big Beautiful Bill” into law in the Oval Office at 5 p.m. ET on Friday.
The new Social Security deduction provisions are set to take effect in tax year 2026 and remain in effect through 2028.
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