A Bigger Social Security Raise Than the COLA? Congress Is Considering One Right Now
The Motley Fool • • business
Key Points:
- Two bills aiming to increase Social Security benefits have been introduced in Congress: the Social Security Emergency Inflation Relief Act proposes a temporary $200 monthly increase for six months in 2026, while the Social Security Expansion Act seeks a permanent $200 monthly raise and a switch to the CPI-E for cost-of-living adjustments.
- The Social Security Expansion Act, supported by Sen. Bernie Sanders and co-sponsors, would fund the increase by removing the earnings cap on Social Security taxes for income above $250,000, potentially extending Social Security's solvency by 75 years.
- Both bills currently face significant political obstacles, as they are supported mainly by Democrats and independents, while Republicans control both chambers of Congress and a presidential veto is likely.
- Despite slim chances of passage, these legislative efforts may stimulate discussion in Washington about improving Social Security's cost-of-living adjustments and addressing the impending depletion of Social Security trust funds projected for 2032.
