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.
Sponsor
Sponsor information not available.
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
No campaign finance data available yet.
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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