A Bigger Social Security Raise Than the COLA? Congress Is Considering One Right Now

Millions of retired Americans know that the phrase "fixed income" isn't completely accurate. Their income isn't fixed forever, at least not their Social Security benefits. That's because Social Security provides an annual cost-of-living adjustment (COLA) that usually increases its benefits.

Retirees rely on the COLA to help offset inflation's impact. Could they ever receive an even bigger Social Security raise? Maybe. The U.S. Congress is considering legislation right now that would make it happen.

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Two bills with two approaches

Two separate bills have been introduced in Congress with similar goals of increasing Social Security benefits. However, these bills have quite different approaches.

Rep. John B. Larson, D-Conn., Rep. Steven Horsford, D-Nev., and Sen. Elizabeth Warren, D-Mass., are promoting the Social Security Emergency Inflation Relief Act. This legislation would provide a $200-per-month emergency increase in Social Security benefits, but only from January 2026 to July 2026. The reason for the temporary increase is to help Americans who are being squeezed by higher prices. The proposed increase would apply to all Social Security beneficiaries, including those receiving disability benefits.

However, Sen. Bernie Sanders, I-Vt., has a more far-reaching plan. He, along with 10 co-sponsors, introduced the Social Security Expansion Act. This legislation would also increase Social Security benefits by $200 per month ($2,400 per year), but would make the change permanent.

Sanders' bill also calls for using the Consumer Price Index for the Elderly (CPI-E) in calculating annual Social Security COLAs. This index is designed to better reflect the prices seniors pay than the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which is currently used to calculate COLAs.

The Social Security Expansion Act would pay for itself and extend Social Security's solvency for 75 years. How? Sen. Sanders wants to remove the earnings cap on Social Security taxes and subject all income above $250,000 to the FICA tax that helps fund Social Security.

Why do both bills face major obstacles?

Retirees shouldn't hold their breath in expectation of receiving a Social Security raise in addition to the annual COLA, though. Both bills face significant hurdles in becoming law.

Most importantly, they're supported only by Democrats and independents who caucus with Democrats. With Republicans currently controlling both the U.S. Senate and the House of Representatives, the two bills have slim chances of passing in either chamber. Even if either bill somehow gained enough votes to pass Congress, President Trump would almost certainly use his veto power.

However, the introduction of these two pieces of legislation could help spark a conversation in Washington, D.C., about the weaknesses of the Social Security COLA in protecting seniors' purchasing power. They could also highlight the need for action to prevent a steep benefits cut when the Social Security trust funds are depleted in 2032.

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