A Second Chance for Faith Leaders: The Bipartisan Clergy Act

Clergy members have the unique option to opt out of Social Security and Medicare by claiming a conscientious exemption under Section 1131—typically within two years of earning ministerial income above $400 per year. While this decision may provide short-term financial relief, it results in the forfeiture of critical long-term benefits, including Social Security retirement, disability, and Medicare coverage. Because the decision is generally permanent, many clergy members later regret this choice.

What the Clergy Act Proposes

The Clergy Act, reintroduced in early 2025, represents a bipartisan effort led by Senators Maggie Hassan (D-NH) and Katie Britt (R-AL), along with Representatives Vince Fong (R-CA) and Mike Thompson (D-CA). The proposal would:

• Establish a time-limited re-enrollment window for clergy who previously opted out

• Require participants to contribute for at least 40 quarters (10 years) after opting back in to qualify for benefits

• Direct the IRS and Social Security Administration to create a notification process for eligible clergy

You can read a copy of the proposed bill here. Historically, as seen in the Social Security Handbook, Congress has opened similar opt-in windows in 1977, 1986, and 1999. The most recent opportunity expired more than 25 years ago.

Why This Matters

• Financial Security for Clergy
  Many pastors make this decision early in their careers without fully considering its long-term implications. Later in life, they face limited access to Social Security, disability, Medicare, and survivor benefits.

• Increased Federal Revenue
  The Congressional Budget Office estimates that this opt-in opportunity could generate approximately $77 million by enrolling about 4,000 clergy members.

• Strengthening Communities
  Research, including Robert Putnam’s Bowling Alone, demonstrates that faith leaders play a vital role in fostering social cohesion and community resilience.

What Comes Next

This bill has not yet passed, and congressional debate is expected in both chambers during 2026. Proponents aim for passage during this session, building on prior committee votes and broad organizational support. If enacted, clergy would have a defined period to opt back in, contribute for 10 years, and regain access to previously forfeited benefits.

Final Thoughts

In an article published last year by MinistryWatch, Congressman Fong described the importance of the Clergy Act, saying, “Our faith leaders are pillars of strength in our community, offering guidance, hope, and compassion. We are grateful for their selfless service, and it is only right that we stand with them now.” If passed, this bill would allow clergy who chose to opt out of Social Security early in their careers to regain access to important late-career benefits, such as Social Security, Medicare, and disability.