Lopez is president of the Hispanic Leadership Fund, a nonpartisan public policy advocacy organization that advances liberty, opportunity and prosperity for all.
With financial insecurity looming in the consciousness of millions of Americans, it was encouraging to see the U.S. House of Representatives recently passed legislation that strengthens and expands opportunities for those who participate in private retirement plans through their employer. Tens of millions of Americans stand to benefit from potential changes in the law.
The Securing a Strong Retirement Act, often referred to as SECURE 2.0, passed the chamber with overwhelming bipartisan support (by a vote of 414-5) — which is in and of itself eyebrow-raising these days.
The bill includes a series of critical changes that will help small businesses and their employees, lower- and middle-income families, and anyone attempting to save and improve their economic outlook.
One of the most important provisions of SECURE 2.0 is enhancement of the Saver’s Credit, a tax credit available to low- and moderate-income workers who make contributions out of their salary to their employer-sponsored 401(k), 403(b), SIMPLE, SEP or governmental 457 plan, or who contribute to traditional or Roth IRAs.
Under current law, the credit percentage — which is multiplied by the contribution (up to the maximum contribution of $2,000) — is 50 percent, 20 percent, 10 percent or zero, based on the taxpayer’s modified adjusted gross income. SECURE 2.0 eliminates the MAGI tiers and makes the credit percentage 50 percent for all who don’t surpass the upper-income threshold. For example, if a married couple has $48,000 of income, and one of them makes a $2,000 contribution to a plan or IRA, the current credit of 10 percent equals a $200 tax credit. Under SECURE 2.0, that same couple would receive a 50 percent credit — $1,000.
SECURE 2.0 also incentivizes small businesses to offer retirement plans, an employee benefit that is often difficult for small businesses to establish.The three-year small-business start-up credit is currently 50 percent of administrative costs, up to an annual cap that can be as much as $5,000. If a company with up to 100 employees starts a retirement plan and spends $3,000 per year administering it, the employer currently receives a $1,500 per year credit for three years. Under SECURE 2.0, that 50 percent credit would increase to 100 percent for employers with up to 50 employees, going from $1,500 to $3,000 in this example.
To illustrate the power of the additional credit based on contributions, assume that a 40-employee company makes $500 contributions for each of its employees. The contribution-based credit for that company over five years would total $70,000 — $20,000 in each of the first two years, $15,000 in the third year, $10,000 in the fourth and $5,000 in the fifth. This is a powerful incentive that helps both the small business itself and of course its employees.
SECURE 2.0 allows student loan payments to be treated as elective deferrals for purposes of matching contributions. Under the bill, an employer would be permitted to make matching student loan contributions under 401(k) and 403(b) plans. This addresses a problem facing millions of employees who are so buried in student debt that they cannot afford to make retirement contributions and thus lose out on matching contributions offered by their employer. For example, if an employer provides a 50 percent match and an employee makes student loan payments of $1,000, the employer would make a $500 contribution to the plan on behalf of that employee.
There are a whole host of other provisions. For example, the bill would help part-time employees become eligible to participate in their employer’s retirement plan, addressing a key concern under today’s rules. Also, the bill would help our nation’s military spouses become covered by retirement plans despite having to move so much to support their spouses. And the bill establishes a lost-and-found registry to help individuals find retirement benefits that they have earned but lost track of.
With bipartisan cooperation toward solving problems seeming impossible to find, the SECURE 2.0 bill represents important progress that benefits working families across the country. The Senate has its own version making its way through the legislative process. Those following these bills closely expect that these bills will be combined and probably included in a broader legislative package.
Regardless of how it comes to be, let’s hope that lawmakers continue to work together on such a critical issue as financial empowerment for everyday Americans.
Children watch a July Fourth Parade along the Walkway of Heroes and Independence Avenue on July 04, 2026 in Tappan, New York.
The Great American Grumpfest
Our nation’s 250th birthday party didn’t feel especially patriotic and wasn’t as much fun as the 200th anniversary was.
President Trump, who did his best to co-opt our holiday for his personal aggrandizement, was a major reason. The party he threw in Washington, D.C., was crankier than uplifting, and less about celebrating our shared past and a promising future than about reminding us how far we have strayed from our founders’ plan to create a republic that future Americans would keep in good working order.
Credit Trump this much. He has a singular gift for picking at scabs that other politicians would rather ignore and pushing us into reckonings we don’t need.
The thing is, Americans have seen all this before. Sometimes the makeover we were encouraged to undertake was more conservative, sometimes more liberal. Whatever direction we were pushing, however, the reckoning we had in mind this time had to be more forthright and the conclusion more definitive than it was the last time.
Our current discontents, the ones behind the reckoning President Trump has been trying to inspire, are not trivial. Included among them are immigration, birthright citizenship, exploding healthcare costs, election rigging, a gag-inducing national debt, how we educate our children, too many genders, racial differences we can’t move past, a lopsided economy that favors more well-off Americans, and historic levels of political corruption and graft. Add to these the several foreign adventures he has pushed us into or is anxious to undertake, and you have the makings of a national headache the likes of which we haven’t had in half a century.
All the elbow-throwing and overheated rhetoric we’re using today have begun to look almost normal in all the ways that bickering neighbors and feuding family members appear normal. But they have also made us look mean-spirited and have portrayed our differences as irreconcilable. To ourselves, of course, but also to many people outside the United States who might be forgiven for turning their heads and not looking at the national car wreck we Americans show no interest in avoiding.
The good news, as I suggested above, is that Americans have had a great deal of practice dealing with challenges and national car wrecks like these.
This essay begins to lay out the reasons why.
By way of illustration, we have our seemingly insatiable demand for more bad news about race in America.
Sixty years after being released from the legal constrictions that bedeviled both white and black Americans, many white people have come to believe the color that used to make them unassailable is now a sign of a moral inferiority born of a racial animus they can never wash off. Many black people, on the other hand, are insisting that America is as hopelessly stacked against them as the formerly unassailable white people’s ancestors used to tell their black ones.
The result is that many people today are buying into racist nightmares and mumbo jumbo that their black and white ancestors worked hard and effectively to put in each other’s heads.
This might be dismissed as crazy behavior if it weren’t so important to rituals Americans have long used to express their deepest fears about each other while figuring out what move they can make that won’t end with their world crashing down on everybody’s head.
Unfortunately, the kind of cultural sleight of hand we have used to ramp up our racial differences has been appropriated by people who have many other cultural fears and unresolved differences with each other. Their clumsy but culturally prescribed missteps are making all these other issues look as irremediable as our racial problems.
A good place to start an answer to how we back away from ledges is Alexis de Tocqueville’s writing on early-19th-century American democracy. He had an optimistic take on Americans’ unscripted displays of public bravado, recrimination, and payback.
For him, these were occasions when people tried to mitigate the effects of the unfair hand they were dealing someone else or had themselves been dealt by behaving in ways quite at odds with how they would otherwise be expected to act. These inversions of what Tocqueville called “the natural order of conscience” presented themselves as a loud but culturally muted challenge to the hypocrisies that people had built into the world they’d made together.
One of his favorite illustrations of early-American hypocrisy involved slave masters sleeping with their less-than-worthy slaves. To the best of my knowledge, he didn’t pick up on all the ways that slaves messed with their owners. Their well-chronicled and quiet resistance showed that even severely ill-treated people can exercise more control over their lives than outsiders appreciate.
Be that as it may, such inversions of a people’s “natural order of conscience” make a good public show of them wrestling with demons they can’t or may not want to shake off, but in any case, are nowhere close to figuring out how to cast out.
Implicit in these disruptions was the discomforting idea that people might flip the entire script and turn the world on its head in more permanent ways. That kind of flipping worked out better for us in our revolution against England than in our Civil War. These events taught us the value of stepping back from historically unprecedented ledges.
Americans of late have been giving loud expression to a long list of things they don’t like about each other and the last makeover they started but didn’t finish a half-century ago. The outcome of our fights today will be as revealing as they are embarrassing to everyone who imagined they could recast our country in a way that privileged their favorite kind of Americans.
Their disappointment with the accommodations they strike will be palpable, but the middling results they achieve with all their pushing and shoving won’t be anything they can’t live with.
Anthropologists who have written about such moments in other cultures less “advanced” than our own show that people find ways to work around their seemingly irreconcilable differences without ever fully resolving them. Indeed, the patches and repairs people make have the unheralded effect of reinforcing rather than undermining the legitimacy of the practices and values they thought were fundamentally flawed.
For example…
White guilt and black pessimism do more good than putting cash into the pockets of professional shamers and handwringers. They give the rest of us who don’t feel guilty or powerless more time to make the world less racially unequal. Good news.
Regarding illegal immigration, the entrance requirements for future immigrants will remain stringent. Americans will applaud the continued detention and deportation of the few illegal immigrants who commit serious crimes. Good news.
All the people who came to the United States without being legally vetted and were locked up for a time will be released in numbers small enough to avoid serious media attention. Along with the several million other good people who snuck in but avoided capture, the former detainees will go to school, find gainful employment, pay their taxes, and stay out of trouble. Many will eventually become citizens. Good news.
Investigations into election tampering and Donald Trump’s 2020 presidential loss will come to an unceremonious conclusion the day after his second term ends. Many Americans will grumble about this, but there will also be some quiet partying, too. Good and bad news.
Congressional hearings into all the grifting accomplished by people tied to the Trump administration will end without anyone having to pay a dime back to the American taxpayers. Bad news, we’ll learn to live with.
New laws and regulations will be created in the hope that the kind of corruption practiced by President Trump will not be repeated for another 250 years. Good news, I hope we’ll live long enough to enjoy.
Show trials for people who allegedly vandalized the Lincoln Memorial Reflecting Pool, if they happen, will get big television viewer ratings. Good news.
Trials for pardoned Capitol insurrectionists who committed serious crimes after their release should get more attention, but won’t. Bad news.
We will continue to hear nothing from most of the people who were pardoned for crimes they committed in the insurrection at the Capitol on January 6, 2021. They will keep their mouths shut and their heads down for the rest of their life. Good news.
The gold-gilded ornaments that Donald Trump had plastered all over the White House will be shipped to Mar-a-Lago, where the former president will sell them on eBay. Fun news.
American taxpayers end up paying for most of the new East Wing, the removal of the miniature gladiatorial arena that was built behind the White House, and the restoration of the White House rose garden. Bad news.
The Triumphal Arch was never built. Good news.
Trad wives and gay couples raise perfectly lovely children. Good but unsurprising news.
Trans men and women learn that most Americans can’t figure out who they used to be. No one gives a second thought to their use of “family bathrooms” or “unisex bathrooms” in public settings, businesses, and schools. Communities will sponsor athletic teams that have trans boys and girls just to show they can. Good news.
Budget deficits will be kicked down the road for someone else’s children to pay down. Bad news.
Federal agencies that had their budgets and employee ranks slashed during President Trump’s second term are getting some of the money and lost positions back. Good news.
Elite universities will buy their way out of DEI purgatory by competing for conservative scholars whose inflated salaries dwarf those of their liberal colleagues, who will think about suing their institutions for reverse discrimination but won’t be able to figure out who would pay for it or care. More fun news.
Okay. I’ve probably missed some ways that Americans will step back from the ledges they have been making noises about leaping off. But to the extent that my predictions pan out, the best and most important moral of the stories about us stepping away is this: everything we lost and took back, or had returned to us, will have happened without our government collapsing, civic traditions crumbling, or our people beating each other up.
The reason why is that the differences Americans have with each other really weren’t as irreconcilable as we made them out to be. The empty-sounding bromide that Americans have more that unites us than divides us turns out to be true, not just metaphorically but in fact.
Now that is really something to celebrate.
Daniel J. Monti (danieljmonti.com) is Professor of Sociology at Saint Louis University and the author of American Democracy and Disconsent: Liberalism and Illiberalism in Ferguson, Charlottesville, Black Lives Matter, and the Capitol Insurrection.