Social Security bill to increase benefits by $200 per month? What to know about new legislation

A bank bill introduced by popular Senators could top to Social Security payments rising by $200 per month, Newsweek reported. The proposed bill comes at a time when Americans are expressing increasing concerns over inflation and affordability. The Social Security Administration (SSA) announced in October that benefits are going to increase by 2.8 percent next year because of the annual cost-of-living adjustment (COLA).

The Social Security Emergency Inflation Relief Act and the Boosting Benefits and COLAs for Seniors Act were in Congress last week.

The first legislation is going to provide a $200 monthly boost to Social Security benefits until July 2026. Should the bill be enacted, Social Security and veterans benefits would be raised.

Among co-signers of the bill were Democratic Senators Elizabeth Warren of Massachusetts, Kirsten Gillibrand of New York, Ron Wyden of Oregon and Chuck Schumer of New York.

“This 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,” a summary of the bill said.

Meanwhile, the White House said in a statement to Newsweek, “President Trump will always protect and strengthen Social Security, which is why he signed historic legislation removing taxes on Social Security benefits for nearly all beneficiaries.”

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The US annual inflation rate increased to 3 percent in September. This was up from 2.9 percent in August, and was notably the highest level since January, as reported by Newsweek.

The second bill is expected to change how annual COLA adjustments are determined. At present, the SSA calculates the annual adjustment using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Inflation is measured based on the spending habits of younger, urban workers, instead of retirees.

The bill proposes that the inflation measure on which the COLA is produced be changed to the CPI-E, which tracks the expenses and spending habits of Americans who are aged 62 and older.

Senator Kirsten Gillibrand of New York said in a news release, “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.”

Read More | SSA announces 2.8% COLA hike for 2026; recipients call it insufficient amid rising inflation costs

“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,” the release added.

Senator Elizabeth Warren of Massachusetts said in a news release, “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.”

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