Congress is indeed considering larger raises than the annual Cost-of-Living Adjustment (COLA). The primary proposal, the Social Security Expansion Act, includes an across-the-board benefit increase and more generous cost-of-living calculations for seniors.
While seniors recently received a 2.8% COLA for 2026, boosting the average retirement check to roughly ($2,071), these legislative proposals go much further. Key details on how these congressional plans compare to standard increases include:
Legislative Proposals vs. Standard COLA
- The Social Security Expansion Act: This bill proposes a direct, across-the-board raise for current and new beneficiaries, along with a revised formula to more accurately reflect the living costs of older adults.
- No Tax on Social Security Act: Another major push in Congress (H.R.904) aims to exclude benefits from gross income for federal taxes, which would effectively leave more money in retirees’ pockets.
- Alternative CPI-E Formula: Bills being weighed in Congress often seek to replace the current COLA metric (CPI-W) with the Consumer Price Index for the Elderly (CPI-E), which gives more weight to healthcare and housing costs.
Why Congress is Acting
Lawmakers are attempting to combat the rising cost of living while addressing the approaching funding shortfall. The Social Security trust fund reserves face depletion as early as 2032, which has prompted these expansion and reform bills to secure the program’s long-term solvency.
- How It’s Funded: To pay for these permanent boosts and shore up the trust fund, these expansion bills propose taxing wages above ($250,000) and applying new taxes to investment income.
