Social Security benefits are not able to meet the needs of beneficiaries, resulting from the financial burden that rising inflation imposes on them. That is why Senate Democrats have proposed two bills intended to increase payments by $200 per month, which would affect more than 50 million American citizens. The proposals include creating the Social Security Emergency Inflation Relief Act and the Senior Benefits Increase and Cost-of-Living Adjustment Act. Championed by Democratic senators Elizabeth Warren of Massachusetts, Kirsten Gillibrand and Chuck Schumer of New York, and Ron Wyden of Oregon, the first aims to increase Social Security benefits by $200 per month until July 2026.
The second aims to modify the formula used to calculate Cost of Living Adjustment (COLA) figures, proposing the use of the CPI-E instead of the CPI-W. This new measure would apply to retirement, Survivors, and Disability Insurance (OASI and SSDI) beneficiaries, as well as Supplemental Security Income (SSI) recipients. For its part, the White House, despite having declared its intention to protect Social Security beneficiaries, has been responsible for the 3% increase in the inflation rate in the United States in September. According to The Senior Citizens League, only 10% of older people are satisfied with their Social Security benefits, and 73% rely on Social Security support to cover more than half of their income.
Fight against inflation
The relentless growth of inflation in the United States has led Senate Democrats to step in, seeking to ease the financial burden on 50 million American citizens who are struggling due to Trump’s inflation. To that end, they have proposed two bills aimed at increasing Social Security benefits by $200 a month. These are the proposal to create the Emergency Social Security Inflation Relief Act and the Benefits Increase and Cost-of-Living Adjustments for Seniors Act. Senator Kirsten Gillibrand, one of the promoters of these bills, stated, “Americans deserve to retire with dignity, not spend their golden years simply trying to survive.
Our retirees have dedicated a lifetime of hard work to contributing to Social Security, but the benefits are not enough to keep up with the rising cost of living, and this year’s annual cost-of-living adjustment is not enough to keep them afloat. And he added: “These two bills would help ensure that older Americans do not have to choose between paying for their medications and buying food, providing short-term relief and long-term solutions. As the top Democrat on the Senate Aging Committee, I am determined to pass these crucial bills to ensure that our seniors can age with dignity”.
Emergency Social Security Inflation Relief Act
Sponsored by Democratic Senators Elizabeth Warren of Massachusetts, Kirsten Gillibrand and Chuck Schumer of New York, and Ron Wyden of Oregon, the proposal seeks to increase Social Security benefits by $200 per month until July 2026. According to a summary of the bill, “This would provide relief to seniors, veterans, and Americans with disabilities living on fixed incomes who could not keep up with Trump-era inflation”.
Elizabeth Warren, Senator from Massachusetts, stated in a press release, “While Donald Trump sends $40 billion to Argentina, I propose sending U.S. retirees who receive Social Security an additional $200 per month to offset rising prices.” This $200 increase would apply to:
- Beneficiaries of Social Security (Old-Age, Survivors, and Disability Insurance – OASI and SSDI).
- Recipients of Supplemental Security Income (SSI).
- Veterans who receive disability compensation or pension benefits.
- Annuitants of the Railroad Retirement Board.
- Certain annuitants of the Federal Civil Service Retirement System.
Law on Increasing Benefits and Cost-of-Living Adjustments for Older Adults
Currently, the SSA calculates the annual adjustment using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures inflation based on the spending habits of younger, urban workers rather than retirees. The new bill proposes changing the inflation measure on which the COLA is based to the CPI-E, which tracks the expenses and spending habits of Americans aged 62 and older.
In this way, the figures would be more accurate regarding the needs and real situation of retirees. The Executive Director of The Senior Citizens League, Shannon Benton, stated, “Older adults and the The Senior Citizens urge Congress to take immediate action to strengthen cost-of-living adjustments (COLA) and ensure that Americans can retire with dignity, such as establishing a minimum 3 percent COLA and changing the COLA calculation from CPI-W to CPI-E”.