Despite the ongoing federal government shutdown that subsequently resulted in the Bureau of Labor Statistics ceasing all operations, the Social Security Administration (SSA) was able to announce the 2026 Cost of Living Adjustment (COLA) on October 24th. Starting with the January round of payments, all benefits issued by the SSA will be increased by 2.8%.
The COLA increase was not much of a surprise to most as the latest estimates from experts made prior to the official announcement had projected a COLA of 2.7% for 2026. Many advocates and seniors receiving Social Security feel that the COLA increase does not accurately reflect the increasing rates of inflation and higher costs for goods and services.
As such, a group of Democratic senators are now proposing a bill that would increase both Social Security and Veteran Affairs benefits by $200 per month for a period of six months. The senators believe that the 2.8% COLA increase will not suffice for beneficiaries faced with rising costs, hence the need for this “emergency” benefit boost. Here is what you need to know.
Is the 2.8% COLA boost enough?
On October 24th, the SSA officially announced a 2.8% increase for all benefits in 2026. The COLA is an annual increase implemented to benefits in order to counter the effects of year over year inflation. With a 2.8% COLA boost, the average benefit check will be increased by around $56 starting in January.
The unfortunate news for seniors enrolled in Medicare Part B is that a chunk of their COLA increase is already slated to be eaten away before the increase even comes into effect. This is because the Medicare Part B premium is projected to face an 11.6% increase in 2026. This increase will bring the cost of the premium up from $185 to around $206.50. Since Part B premiums are automatically deducted from benefits, once the premium hike and the COLA increase offset each other, seniors will only be left with a $35 COLA boost in actuality — and this is based on the assumption that other expenses remain stagnant in 2026.
Furthermore, “price levels from the 2025 tariffs are expected to rise by 1.3%,” according to an October analysis by Yale’s Budget Lab. This will then prompt “an average household income loss of $1,800 in 2025.”
Democratic senators propose $200 benefit boost
A group of Democratic senators are now proposing the Social Security Emergency Inflation Relief Act. This proposed bill would give all Social Security and Veteran Affairs benefits a $200 increase per month for six months and would apply to those who receive benefits from Social Security, Supplemental Security Income, railroad retirement, veteran disability compensation and veteran pensions.
The Social Security Emergency Inflation Relief Act is being backed by a number of Democratic senators including, Mark Kelly of Arizona, Alex Padilla of California, Tammy Duckworth of Illinois, Angela Alsobrooks and Chris Van Hollen of Maryland, Elizabeth Warren of Massachusetts, Tina Smith of Minnesota, Kirsten Gillibrand and Chuck Schumer of New York, Ron Wyden of Oregon and Peter Welch of Vermont.
In a post on social media platform X following the announcement of the 2026 COLA increase, Sen. Elizabeth Warren wrote the following: “Donald Trump is building a $300 million luxury ballroom and sending $40 BILLION to Argentina. But when the cost of groceries, health care, utilities — just about everything — is skyrocketing, America’s seniors only get another $56 a month. That’s not enough in Trump’s economy.”
Additionally in a statement, Warren also referred to the proposed bill as an “emergency lifeline for seniors struggling to afford Trump’s tariffs and rising inflation.”
“The senators’ proposal to add $200 per month to Social Security payments — including retirement, disability and SSI benefits — would cost approximately $90 billion and advance Social Security’s trust fund insolvency dates by about two months,” Emerson Sprick, director of retirement and labor policy at the Bipartisan Policy Center explained. “That estimate does not include the increases to railroad retirement or veterans benefits.”