Social Security checks could rise by $200 a month under a new Senate proposal

Your Social Security check could be a few hundred dollars larger in the first half of 2026, if a proposed bill is approved by Congress.

Several Democratic lawmakers introduced a bill to the Senate at the end of October that would increase monthly Social Security payments by $200 starting in January and ending June 30. They say these additional benefits will help beneficiaries keep up with the rising costs of necessities, such as medications and groceries.

“Our seniors have put in a lifetime of hard work paying into Social Security, but payments simply aren’t keeping up with rising costs, and this year’s annual cost-of-living adjustment is not enough to keep seniors afloat,” Sen. Kirsten Gillibrand (D-N.Y.) said in a prepared statement.

What does paying $200 mean to you?

The proposed payments would be in addition to the 2.8% COLA increase for Social Security benefits for 2026, which would result in an approximately $56 increase in monthly checks.

The $200 payments would be given to beneficiaries who receive Social Security payments, Supplemental Security Income, railroad retirement benefits, and veterans benefits, if the proposed bill is enacted. The additional payments will also not be considered income to beneficiaries, meaning the extra $200 will be essentially tax-free.

Why is additional payment required?

Many lawmakers and advocates have argued that the formula currently used by the Social Security Administration does not reflect beneficiaries’ actual expenses.

Annual cost-of-living adjustments for Social Security benefits are calculated using the Consumer Price Index for Urban Wage and Clerical Workers (CPI-W). However, some lawmakers and advocates argue against using the Consumer Price Index for Americans 62 and older, known as the CPI-E.

The CPI-E is an empirical inflation index and, as such, has a wider margin of error compared to the CPI-W. However, critics of the current calculations say they would ensure that benefits more accurately reflect the increasing costs faced by Social Security beneficiaries.

Some Social Security beneficiaries report that their checks are not keeping up with rising prices. According to a study by AARP, a majority of older Americans believe the 2026 cost of living increase likely won’t be enough to keep up with their rising costs.

Medicare Part B premiums, which many Social Security beneficiaries must pay, are expected to exceed COLA for 2026. Other medical costs, such as prescription drugs and hospital stays, have continued to increase and consume a larger portion of beneficiaries’ checks.