Democratic Senators are pushing legislation that could hike monthly Social Security payments by $200, arguing senior citizens are struggling to keep up with sky-high costs.
The recently introduced “Social Security Emergency Inflation Relief Act” would include the additional money until July 2026. Recipients of Social Security, Supplemental Security Income, veteran disability compensation, veteran pensions and railroad retirement would get the extra dough, the bill’s sponsors said.
The legislation is all but certain to fail in the Republican-controlled Senate.
Still, the bill’s prime sponsor Sens Elizabeth Warren (D-Mass.) argued that inflation has pushed prices so high that seniors need extra help.
The extra $200 per month would provide an “emergency lifeline for seniors struggling to afford Trump’s tariffs and rising inflation,” she said in a statement.
Upcoming cost-of-loving adjustment
The Social Security Administration said last month that benefits for more than 50 million American retirees will increase 2.8% next year as part of its annual cost-of-living adjustment, also known as COLA.
That is “simply not reflective of the current reality” for seniors, stated bill co-sponsor Sen. Chuck Schumer (D-NY.), the Senate minority leader.
Other sponsors of the legislation include Sens. Kirsten Gillibrand (D-NY) and Ron Wyden (D-Ore.).
US inflation hit 3% in September – the highest level since January, according to the Bureau of Labor Statistics’ Consumer Price Index.
Prices on products from a cup of coffee and kids’ toys to living room furniture and Amazon deals have soared in recent months.
Concerns around the recently ended government shutdown – the longest in history – and broader economic issues like inflation sent monthly consumer sentiment to its lowest level in over three years, according to data released earlier this month.
Meanwhile, adults are putting off homeownership for longer than ever.
The median age of first-time homebuyers hit 40 years old this year – a record-high, according to the National Association of Realtors’ annual report.
‘Boosting Benefits and COLAs for Seniors Act’
Separately from Warren’s bill, Democratic senators introduced the “Boosting Benefits and COLAs for Seniors Act,” which would tweak the current formula for annual cost-of-living adjustments.
The Social Security Administration currently calculates the adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers.
This inflation measure is based on the spending habits of younger, urban workers.
But the “Boosting Benefits” bill would base the adjustment on the CPI for older Americans, tracking the spending habits of retirees age 62 and older – which could raise the payments.
“Americans deserve to retire with dignity, not spend their golden years just trying to get by,” Gillibrand said in a statement.
“Our seniors have spent a lifetime of hard work paying into Social Security, but the payouts simply aren’t keeping up with rising costs, and this year’s annual cost-of-living adjustment is not enough to keep seniors afloat.”
The average retirement benefit in August was $2,008, according to the most recently available data.
About 73% of seniors depend on Social Security for more than half of their income, according to a study by the nonprofit Senior Citizens League.
Social Security benefits are available to retired Americans age 62 and older. Surviving family members of deceased workers and some disabled citizens are also eligible.
