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House Lawmakers Move to Repeal Tax Provisions Affecting Federal Retirees

Legislators in the House of Representatives are poised to advance a significant piece of legislation aimed at removing two contentious tax policies that impact federal retirees’ annuity benefits. This development comes despite efforts made earlier this week to obstruct the voting process.

In September of last year, Representatives Garret Graves (R-La.) and Abigail Spanberger (D-Va.) successfully garnered the required 218 signatures for a discharge petition, facilitating a floor vote on the Social Security Fairness Act (H.R. 82). This important measure seeks to abolish both the windfall elimination provision and the government pension offset, which disproportionately affect retired government personnel. Prior to the petition, the bill had already attracted over 300 cosponsors.

The windfall elimination provision specifically reduces Social Security benefits for retirees who have divided their careers between private sector jobs and federal, state, or local government roles, where Social Security was not initially factored into their retirement income—such as those under the Civil Service Retirement System. Similarly, the government pension offset diminishes spousal and survivor Social Security benefits for families that have retired government employees.

Following the successful discharge petition, House Speaker Mike Johnson, a co-sponsor of the bill, is obligated to schedule a vote on the matter when Congress reconvenes. This legislation is currently positioned on a list earmarked for expedited consideration, requiring a two-thirds majority of lawmakers next week, despite a recent attempt by two conservative representatives from the D.C. area to stall its progress.

On Election Day, shortly after 5 p.m., Representatives Bob Good (R-Va.) and Andy Harris (R-Md.), both linked to the House Freedom Caucus, convened a brief session on the House floor. During this session, Good sought unanimous consent to table the legislation—an action that would effectively halt the bill’s progress. This maneuver was first reported by Roll Call.

However, their attempt appeared to fall short for two vital reasons. First, a House parliamentarian was heard confirming on the floor that any request for unanimous consent must be approved by the House Speaker and the House Minority Leader prior to being presented.

Additionally, though the Freedom Caucus members aimed to suppress Graves and Spanberger’s bill, the discharge petition mandates that the Speaker must schedule a vote related to the rule governing the bill’s consideration on the House floor. Notably, this measure is at the forefront of the list slated for consideration under suspension of the rules in the upcoming week, as confirmed by an update released shortly after the pro forma session.

The bill’s prospects in the Senate, however, remain uncertain. Currently, a companion legislation has the backing of 63 senators but has been stalled in committee since its inception last year. According to the Congressional Budget Office, if passed, this measure would incur an estimated $196 billion in additional Social Security benefit expenditures over the next decade.

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