A years-long effort to provide a retirement safeguard for U.S. clergy has taken another major step forward.
On Sept. 30, the Senate unanimously passed the Clergy Act, following the bill’s passage by the House of Representatives in April.
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The legislation provides a second chance for ministers experiencing buyer’s remorse after taking advantage of a special exemption in the U.S. tax code.
While most taxpayers are required to pay into Social Security, clergy may claim a conscientious objection. Eligible individuals include “any duly ordained, commissioned, or licensed minister of a church, member of a religious order who has not taken a vow of poverty; or any Christian Science practitioner.”
In some cases, those who opt out early in their ministries experience a change of heart as they near retirement. The Clergy Act would provide a two-year re-enrollment window, after which these individuals would have to pay into Social Security for at least 10 years before becoming eligible for benefits — the same minimum required of all other taxpayers.
The bill stalled in 2024 under the Biden administration, but lawmakers reintroduced it under the Trump administration, and it now heads to President Trump’s desk for his signature. Once signed into law, the Clergy Act will take effect in 2029 — exactly 30 years since the federal government last offered a re-enrollment window.
Sens. Katie Britt, R-Ala., and Maggie Hassan, D-N.H., co-sponsored the Senate bill. Its House counterpart was co-sponsored by Reps. Vince Fong, R-Calif., and Mike Thompson, D-Calif. The act has also been endorsed by several Christian organizations, including the Church Alliance, the Evangelical Council for Financial Accountability (ECFA) and the National Association of Evangelicals.
“I applaud the sponsors of the Clergy Act for shepherding this bill to final passage. This is an exciting moment for many pastors who may feel trapped by a decision they did not fully understand as they began their pastoral work,” Michael Martin, president and CEO of the ECFA, said in a press release. “The temporary window this bipartisan bill opens for those ministers to re-enter the Social Security system is a reasonable allowance. Moreover, it will truly be a welcome breath of fresh air for these servant leaders.”
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“This legislation provides many eligible ministers an opportunity to strengthen their financial security and resilience as they prepare for retirement,” Hance Dilbeck, president of GuideStone Financial Resources, said in a press release. GuideStone is among a coalition of Southern Baptist entities advocating for the Clergy Act.
“Every minister’s financial situation is unique,” Dilbeck said. GuideStone is preparing to help pastors — both within and outside the Southern Baptist community — understand and weigh the benefits of the new law.
The Congressional Budget Office (CBO) estimates the added revenue from clergy who take advantage of the two-year enrollment window will cut the national deficit by $82 million through 2036. However, their participation will also add to the cost of Social Security benefits in succeeding decades.
According to a January CBO analysis cited by the House Committee on Ways and Means, enacting H.R. 227 “would not increase net direct spending by more than $2.5 billion” and “would not increase on-budget deficits by more than $5 billion” in any of the four consecutive 10-year periods beginning in 2037.
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