Bills · S 2365
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2365Taxation
Small Nonprofit Retirement Security Act of 2025
INTRO JUL 21· LAST ACTION JUL 21
READING
4MIN
COSPONSORS
2BIPARTISAN
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because it addresses a gap in federal support for retirement savings, specifically for employees in the nonprofit sector. Many nonprofit workers, who often earn less, currently lack access to employer-sponsored retirement plans. If this bill passes, it would offer a new financial incentive for small nonprofits to offer these plans, potentially boosting retirement security for many individuals who might otherwise struggle to save for their later years.
Without this bill, small nonprofits would continue to bear the full costs of establishing and managing retirement plans, making it harder for them to compete with for-profit businesses in attracting and keeping skilled employees through benefits. If it becomes law, it could help align the retirement benefits available to nonprofit employees with those in the for-profit world, promoting more equitable access to long-term financial planning.
KEY PROVISIONS
5AI-extractedPROVISION 01
Makes the existing tax credit for small employer retirement plan startup costs available to eligible small tax-exempt (nonprofit) employers.
This provision provides financial assistance to nonprofits for the initial expenses of setting up a retirement plan, which was not directly available to them before.
PROVISION 02
Makes the existing tax credit for retirement auto-enrollment available to eligible small tax-exempt (nonprofit) employers.
This encourages nonprofits to adopt automatic enrollment, a method that has been shown to significantly increase employee participation in retirement savings.
PROVISION 03
Stipulates that these credits for nonprofits will be applied against their employer-paid Social Security payroll taxes, rather than income tax.
This is the crucial mechanism enabling nonprofits, which generally do not pay federal income tax, to actually benefit from these credits.
PROVISION 04
Limits the credit amount for nonprofits to the lesser of the determined credit or the total payroll tax paid by the employer in that year.
This ensures that nonprofits cannot receive more in credit than the amount of payroll taxes they actually paid.
PROVISION 05
Requires that an equal amount of funds be transferred from the general fund to the Social Security Trust Funds to cover the revenue reduction from these credits.
This measure protects the financial integrity of the Social Security program by ensuring it is not negatively impacted by these tax changes.
SPONSORSHIP
1 + 2
R· Oklahoma
YRS IN OFFICE
—
BILLS LED
77
COSPONSOR BREAKDOWNBIPARTISAN · 100%
DEM 1 REP 1 IND 0
ACTION TIMELINE
2 EVENTSJUL 21
Introduced in Senate
JUL 21
Read twice and referred to the Committee on Finance.
BILL INFO
TypeSenate Bill
NumberS 2365
Congress119th
StatusIn Committee
IntroducedJul 21, 2025
Last actionJul 21, 2025
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IN COMMITTEE· 119TH CONGRESS · FINANCE COMMITTEE · INTRODUCED JUL 21, 2025
Senate BillS 2365Taxation
Small Nonprofit Retirement Security Act of 2025
INTRODUCED JUL 21, 2025· LAST ACTION JUL 21, 2025
PASSAGE CHANCES
—%
READING
4 min
COSPONSORS
2
COMPLEXITY
Moderate
