No Social Security for Unauthorized Work: New Bill Retroactively Changes Benefit Calculations

The "No Social Security for Illegal Aliens Act of 2025" aims to directly alter how Social Security benefits are calculated for individuals who have worked in the U.S. without authorization. Specifically, it prevents any wages or self-employment income earned during periods of unauthorized work from counting towards Social Security benefits. This change applies retroactively, meaning past earnings could be excluded, but it will only impact benefit payments after the law is enacted.

Rewriting the Rules

The core of the bill amends Section 210(a)(19) of the Social Security Act. It excludes earnings from "unauthorized employment" when calculating creditable wages for benefits. Similarly, income from "unauthorized functions and services" is excluded from being considered creditable self-employment income. The Commissioner of Social Security will be responsible for recalculating primary insurance amounts to reflect these changes (SEC. 4).

Real-World Ripple Effects

Imagine a landscaper who spent years working in the U.S. without proper authorization, paying into Social Security, but later obtained legal status. Under this bill, all those earlier years of contributions wouldn't count towards their eventual retirement benefits. Or consider a self-employed street vendor in a similar situation – their income, and thus their contributions to the system, during those periods of unauthorized work would be disregarded. This could significantly reduce their future benefits, even if they later become authorized workers.

The Bigger Picture and Potential Challenges

While the bill's intent is clear – to restrict Social Security benefits based on unauthorized work – the practical implications are complex. Determining periods of "unauthorized employment" retroactively could be a logistical nightmare, potentially leading to errors and disputes. It also raises questions about fairness, especially for those who may have later gained legal status and continued contributing to the system. The bill doesn't specify how "unauthorized employment" will be precisely determined, leaving open the possibility of inconsistent application. Furthermore, while the bill aims to reduce Social Security payouts, which some might see as a benefit to taxpayers, it also targets a potentially vulnerable population, raising concerns about equity and long-term financial security for those affected.