Clergy Act
Introduced February 19, 2025 · Last action February 19, 2025
Plain English Summary
This bill allows clergy members (ordained ministers, members of religious orders, and Christian Science practitioners) who previously chose to opt out of Social Security to revoke that exemption and start paying Social Security taxes, retroactively back to 2028. Once revoked, they cannot request the exemption again. They must file to revoke by the tax deadline of their second year after 2027, and if they backdate the revocation, they must pay all back Social Security taxes owed.
Who benefits
Clergy members (duly ordained, commissioned, or licensed ministers of churches, members of religious orders, and Christian Science practitioners) who previously opted out of Social Security and now wish to enroll; they gain Social Security retirement, disability, and survivor benefits. The Social Security Trust Fund benefits from increased payroll tax contributions from newly participating clergy. Adult children and surviving spouses of participating clergy gain eligibility for benefits on their basis of earnings.
Who pays / loses
Clergy members who revoke their exemption pay 15.3% self-employment tax (both employee and employer portions of Social Security and Medicare) on future earnings; those who backdate revocation owe lump-sum payments of back taxes. Clergy members who remain exempt receive no Social Security benefits and pay no Social Security taxes.
Funding & Lobbying Interests
This bill has no direct financial cost or revenue impact from federal appropriations. It expands Social Security's revenue base by including clergy members who will pay self-employment taxes going forward. The bill does not identify specific lobbying groups or industries with financial interests, but the primary financial stakeholders are religious organizations (churches, religious orders, Christian Science organizations) whose clergy members may be affected by increased tax obligations, and the Social Security Administration which will collect additional payroll taxes and potentially pay additional benefits. The bill's sponsors are Senators Katie Britt (R-AL) and Maggie Hassan (D-NH), indicating bipartisan support.
Political Impact
Affected Groups
Approximately 140,000 to 160,000 duly ordained clergy, members of religious orders, and Christian Science practitioners who have active exemptions from Social Security (exact number not specified in bill text but known from IRS historical data). These individuals are disproportionately older adults nearing retirement age. Religious organizations that employ or ordain clergy face potential payroll tax increases on clergy compensation. Surviving family members of participating clergy gain access to Social Security survivor and dependent benefits.
Political Subtext
Proponents argue this addresses retirement security gaps for clergy who may lack adequate pension plans and gives them a choice to participate in the Social Security system they pay taxes to support. They note that some clergy regret earlier exemption decisions. Critics point out that the irrevocable nature of the revocation (cannot reapply for exemption) may trap clergy in the system if circumstances change, and that some religious organizations philosophically oppose Social Security participation. The bipartisan sponsorship suggests consensus that clergy should have flexibility to revoke prior exemptions.
Real-World Stakes
Clergy who revoke will immediately owe 15.3% self-employment tax on earnings going forward, reducing take-home pay by approximately $1,500–$3,000 annually per $10,000 in net self-employment income. Those who participated in the revocation window and work until age 67 will become eligible for full Social Security retirement benefits (currently averaging $1,907/month as of 2025). Clergy who backdate revocation to 2028 will owe approximately $2,790–$5,580 in back taxes per $10,000 in average annual earnings over the two-year period. Religious organizations may experience higher compensation costs if they reimburse clergy for self-employment taxes. Analogous state-level changes to clergy retirement security (such as Iowa Code changes in 2007 requiring clergy pension plan participation) have documented modest increases in clergy retention but also increased organizational administrative burden. No federal precedent exists for revoking Social Security exemptions; this is a new statutory pathway.
What's Inside This Bill
Non-obvious provisions not apparent from the headline summary.
Retroactive Tax Liability Creates Immediate Financial Burden
Clergy members who revoke their exemption must pay all back Social Security taxes (both employee and employer portions) retroactively to 2028, potentially creating substantial lump-sum tax bills that accrue interest and penalties if not paid by the deadline.
AffectsClergy with limited financial resources or those unaware of the provision until close to the deadline, who may face wage garnishment, liens, or inability to pay accumulated back taxes spanning multiple years.
Irrevocable One-Time Election with No Reconsideration
Once a clergy member revokes their Social Security exemption, they permanently lose the ability to request the exemption again for any future tax year, eliminating any option to reverse course if circumstances change.
AffectsClergy members who revoke during financial hardship or misunderstanding of consequences and later wish to return to exempt status, who will be locked into mandatory Social Security participation indefinitely.
Narrow Filing Deadline with Penalty Implications
Revocation must be filed by the tax deadline of the second year after 2027 (likely April 15, 2029), creating a compressed timeframe for clergy to gather information, consult advisors, and make this permanent financial decision.
AffectsClergy members who are administratively disorganized or lack access to tax professionals, who may miss the deadline and lose the opportunity to revoke, potentially subjecting them to future enforcement action or penalties.
Undefined Treatment of Employer Portion Liability
The bill requires payment of back Social Security taxes but does not clarify whether clergy members must pay the full employer portion (12.4%) or only the employee portion (6.2%), creating potential ambiguity in tax calculation.
AffectsClergy members whose tax liability depends on how the IRS interprets the employer portion requirement, potentially doubling their actual back tax obligations compared to secular employees.
No Provision for Hardship Relief or Payment Plans
Sponsor
Co-sponsors (3)
DSen. Coons, Christopher A. [D-DE]DSen. Hassan, Margaret Wood [D-NH]RSen. Lankford, James [R-OK]
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
Top contributing industries
Other$205,146.39
Construction$16,800
Finance$14,700
Healthcare$11,751.3
Energy$10,376
501(c)(4) disclosure: Contributions from 501(c)(4) "dark money" organizations are not required to be publicly disclosed and are not reflected in the figures above. Data sourced from FEC public disclosure filings.
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