S. 4396 — Social Security Caregiver Credit Act of 2026

This section states congressional findings that caregiving is essential to family life and vital services, a caregiver credit would enhance unpaid caregivers' economic and retirement security, and the Social Security Trust Funds can pay full benefits through 2034 (per the 2022 Trustees Report). It expresses the sense of the Senate that Congress address the exclusion of paid family caregivers under state and local health and welfare programs from Social Security and Medicare eligibility.

This section establishes deemed wages under Title II of the Social Security Act (Old-Age, Survivors, and Disability Insurance, or OASDI) for individuals providing at least 80 hours of uncompensated care per month to a dependent relative during a qualifying month prior to reaching retirement age, for purposes of determining monthly benefits or lump-sum death payments payable after December 2026 (or recomputing benefits under section 216(i)(3)). A qualifying month involves care for a dependent relative, defined as (1) a child, grandchild, niece, nephew, or in loco parentis child under age 12; or (2) a chronically dependent family member (i.e., broader relatives including parents, grandparents, siblings, aunts, uncles, spouses, or domestic partners needing daily assistance with at least two activities of daily living—such as eating, bathing, dressing, toileting, or transferring—or instrumental activities of daily living—such as meal preparation, finances, shopping, chores, communication, or community travel). (Assistance under VA caregiver support program section 1720G is not monetary compensation.) Deemed wages equal (1) 50% of the national average wage index for the second preceding calendar year, if no actual wages or self-employment income that month; or (2) the excess of that amount over half of actual wages or self-employment income otherwise. Only the last 60 qualifying months count, and the provision does not apply if it would reduce the benefit amount. (Thus, it primarily benefits caregivers with low or no wages by crediting quarters of coverage toward insured status and higher average indexed monthly earnings.) The Commissioner of Social Security must issue implementing regulations within one year of enactment, including application requirements (e.g., dependent relative details and physician documentation for chronically dependent individuals) and periodic certifications to prevent fraud.