The Social Security program provides tens of millions of individuals with financial support during the more vulnerable phases of their lives. For a number of beneficiaries, the monthly benefit check exists as their primary source of income without which they may not be able to make ends meet from month to month. As such, when inflation factors into a budget that is primarily reliant on a fixed income, the repercussions can often become dire.
In order to aid this, the Social Security Administration (SSA) implements an annual increase to all benefits. This increase is known as the Cost of Living Adjustment, which allows for benefits to be increased relative to year over year inflation hikes. The 2026 COLA increase was recently announced at 2.8% and will go into effect as of January 2026. The common sentiment that appears to be held by both seniors and advocates is that the COLA is not enough to truly address rising costs.
As such, two bills have now been introduced to Congress, one with the aim of brining more money to seniors, whilst the other aims to bring change to the formula used to calculate the annual COLA increase. The proposed legislation are titled the Social Security Emergency Inflation Relief Act, and the Boosting Benefits and COLAs for Seniors Act. Here is what you need to know.
The Social Security Emergency Inflation Relief Act
On October 24th, the SSA announced the 2026 COLA increase at a modest 2.8%. Whilst the upcoming COLA is marginally higher than the 2025 COLA of 2.5%, seniors and advocates alike fear that it is likely to fall short in covering rising costs, particularly those held by seniors. In September, the U.S. annual inflation rate rose from 2.9% in August to 3%, making it the highest level since January.
As such, the Social Security Emergency Inflation Relief Act was introduced by Sen. Elizabeth Warren on October 30th. If this relief bill is passed, $200 would be added to all Social Security and Veterans Affairs benefits for a period of six months ending in July 2026. The bill is being co-signed by a number of senators including, Senate Minority Leader Chuck Schumer, Senate Finance Committee Ranking Member Ron Wyden, Senators Mark Kelly, Angela Alsobrooks, Tammy Duckworth, Kirsten Gillibrand, Chris Van Hollen, Amy Klobuchar, Alex Padilla, Tina Smith, and Peter Welch.
According to a summary, this bill would “provide relief to seniors, veterans, and Americans with disabilities who live on a fixed income that would not be able to keep up with Trump inflation.”
In a news release, Sen. Warren also stated the following: “While Donald Trump sends $40 billion to Argentina, I’m proposing sending American seniors on Social Security an extra $200 a month to offset higher prices. The cost of everything from coffee to beef to health care is up, in large part due Trump’s chaotic tariffs, and Democrats are fighting to deliver some financial relief and lower costs for Americans. This new legislation to expand Social Security is an emergency lifeline for seniors struggling to afford Trump’s tariffs and rising inflation.”
The Boosting Benefits and COLAs for Seniors Act
The Boosting Benefits and COLAs for Seniors Act has also been introduced to Congress with the aim of changing the index used in the COLA calculation. Currently, the annual COLA increase is determined using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The issue being raised is that the CPI-W measures the spending habits of a vastly younger cohort who are also still in the workforce. As a result, the COLA increase ends up falling short in addressing the rising costs faced by seniors.
Senior advocacy groups such as The Senior Citizens League have been calling for the COLA to be calculated using the CPI for the Elderly instead as it is more reflective of costs held by seniors. The CPI-E tracks the spending habits of American seniors aged 62 and older, which also happens to be the age range for Social Security recipients. As such, the Boosting Benefits and COLAs for Seniors Act proposes changing the index used in the COLA calculation from the CPI-W to the CPI-E.
“Americans deserve to retire with dignity, not spend their golden years just trying to get by. 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,” Sen. Gillibrand stated in a news release. “These two bills would help make sure that older Americans don’t have to choose between paying for medication and buying groceries, providing both short-term relief and long-term solutions. As the top Democrat on the Senate Aging Committee, I’m determined to pass these critical bills to make sure our seniors can age comfortably.”