Congress is Weighing a Social Security Bill That Would Hand Retirees a Raise Bigger Than The Yearly COLA

Hoping to see a boost in your Social Security check? How does an extra $200 a month sound?

A piece of legislation known as the Social Security Expansion Act is making its way through Congress. It would permanently raise benefits by about $200 a month, or roughly $2,400 a year.

Find out more about this bill, and the odds that it passes and helps free up your retirement budget.

What the Social Security Expansion Act does

Vermont Sen. Bernie Sanders introduced the bill along with a group of Democrats.

The proposed monthly benefit increase of $200 is far larger than what the annual Social Security cost-of-living adjustment (COLA) delivers.

For example, the 2026 COLA of 2.8% added only about $56 to the average Social Security recipient's monthly payment.

Rising Medicare Part B premiums took a bite out of much of that raise, leaving fixed-income seniors squeezed.

How the government would fund the Social Security Expansion Act

Currently, only the first $184,500 of a person's income is subject to the Social Security taxes that help fund the benefit program. The new act would tax income above $250,000, including investment income.

The bill's supporters note that this would leave taxes unchanged for the vast majority of voters. They say it also would have the benefit of extending the Social Security trust fund's solvency by 75 years.

Currently, the program's Old-Age and Survivors Insurance (OASI) trust fund is predicted to run out of money by the end of 2032, according to the latest Social Security Administration (SSA) trustees annual report.

If that happens, payroll tax revenue would only fund about 78% of scheduled benefits.

How likely is it that the Social Security Expansion Act becomes law?

Before retirees start counting the extra dollars they might get from Social Security, a reality check might be in order.

For now, the act is a mere proposal, not law. Republicans control both the White House and Congress, and most observers say it is unlikely that a bill would pass under this scenario.

Other efforts to help seniors afford retirement

The Social Security Expansion Act is not the only legislation in recent years that has aimed to help seniors keep more cash in their pockets.

In 2025, Republicans slashed retiree taxes by creating an enhanced senior tax deduction as part of the One Big Beautiful Bill Act (OBBBA) that became law.

Under that law, some seniors are entitled to deductions of up to $6,000 per individual. However, the deduction currently is slated to expire after 2028.

By contrast, the Social Security Expansion Act would make the boost in Social Security benefits permanent.

The underlying motivation behind the Social Security Expansion Act

Sponsors of the Social Security Expansion Act clearly believe that annual COLAs are not robust enough to help seniors afford today's cost of living.

Such COLAs were designed only to track inflation, and critics have long argued they don't do enough to protect seniors whose real costs rise faster.

Debate continues about whether Social Security benefits should be increased and whether raising the payroll tax cap is the right way to both lift benefits and address the looming trust-fund shortfall.

How you should view the Social Security Expansion Act

As mentioned, the Social Security Expansion Act is nowhere close to becoming law. In the current political climate, it is hard to see how it would even pass either the House or Senate.

While it makes sense to follow the legislation's status, it would be foolhardy to adjust your budgets in anticipation of a sudden benefit windfall.

Whether you think benefits expansion is a good idea or a bad one, expressing your view to your congressional representatives is among the best ways to ensure your voice is heard on the matter.

Ways to boost your bottom line while you wait

As you keep an eye on the Social Security Expansion Act's fate, take steps to shore up your own bottom line.

If you are a younger worker, consider funding a 401(k) plan at work at least up to your company's match. Otherwise, you are literally leaving free money on the table.

Those who are already in retirement might consider cutting unnecessary expenses, such as eating out regularly or taking too many exotic vacations.

Retirees also might shore up their finances by taking on part-time work or developing a side hustle.

Bottom line

Rising prices and a lifetime of occasional and sometimes surprising financial mistakes have left some seniors struggling to make ends meet.

For these folks, a boost in Social Security benefits might provide meaningful relief.

However, rather than hoping for the unlikely passage of such legislation, it makes more sense to take control of your finances today and look for ways to reduce spending and build savings on your own.

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