Inflation keeps rising, it seems to have really liked the U.S. economy, so the government is being forced to raise Social Security by $200, a great piece of news for the millions of retirees, veterans, and people with disabilities who survive these times thanks to government payments.
But so you don’t miss anything, we’re going to explain step by step what the government’s proposal is and what will happen if it is finally approved.
Why this increase is being proposed
Mainly to help people cope with inflation. Nobody likes prices going up, but if prices rise and payments don’t, in the end we’re creating an economic gap.
That’s why the Social Security Emergency Inflation Relief Act is coming, to compensate for the loss of purchasing power caused by rising prices of basic goods like food, medicine, and housing.
It has also been proposed as part of the bill to change how annual Social Security increases (the famous COLA) are calculated, so that instead of being based on the expenses of younger workers, they use what older adults actually spend on, such as medicine and healthcare.
If Congress gives the green light, the $200 increase would last until July 2026.
The situation now
Currently, the Social Security payment for retirees is around $2,008 per month (more on less, some earn more and others not), and even it’s not a bad number, in many states it’s not enough to get through the month.
It is true that the Social Security Administration has announced a 2.8% increase for 2026 payments, but retirees’ associations claim that this adjustment it is not enough because thedoes not compensate for the real prices of goods.
The Senior Citizens League estimates that 73% of older adults depend on Social Security for more than half of their expenses, and only 10% say they are satisfied with what they receive…
What the proposal says
The bill has been supported by senators such as Elizabeth Warren, Kirsten Gillibrand, Ron Wyden, and Chuck Schumer, who want to ease that pressure on retirees so they can spend their final years without worrying about not making it to the end of the month.
“While Trump sends billions to Argentina, our retirees can barely afford their coffee or their medicines. It’s time to give back what they have contributed their whole lives.” Warren
From the White House, however, a spokesperson reminded that “President Trump will always protect and strengthen Social Security,” and pointed out that his administration has already eliminated certain taxes for most beneficiaries.
Now the experts
For Shannon Benton, executive director of the Senior Citizens League, the $200 increase would help people, but what’s really important is changing the COLA formula, because an adjustment of less than 3% barely reflects the country’s reality.
So, the government has pending work now, and it is to reprogram the COLA adjustments and make them truly serve their purpose that our seniors are not the ones who suffer the most from current inflation.
But…
Remember that the government is currently in a federal shutdown, which means that they keep proposing things (it’s their job) but if the budgets aren’t approved, they won’t be able to sign new laws…
However, if it is approved, the increase could start being paid out in mid-2026, and it would also benefit veterans and people with disabilities.