Congress Weighs SSI Bill That Could Beat the Annual COLA

If you rely on Supplemental Security Income (SSI), the annual cost-of-living adjustment might not feel like much of a raise. A few extra dollars each month helps, but if you are living on just Social Security, it might not erase higher rent, food, prescriptions, or utility bills.

A proposal now before Congress, the Supplemental Security Income Restoration Act of 2026, would make a bigger change. The bill would raise federal SSI benefits for eligible people to at least 100% of the federal poverty level, a jump that could outpace the latest annual COLA for many low-income seniors.

Here's what the proposal could change, who it might help, and why you shouldn't count on a bigger check until Congress actually acts.

Bigger than COLA

The annual COLA adjusts Social Security and SSI payments for inflation. For 2026, the Social Security Administration set the COLA at 2.8%, raising the maximum federal SSI payment for an individual to $994 per month.

The SSI proposal is different because it doesn't just tack on an inflation adjustment. It would reset the federal benefit level to at least 100% of the federal poverty level. For one person in the 48 contiguous states and Washington, D.C., the 2026 poverty guideline is $15,960 a year, or about $1,330 a month. That would be an increase of roughly $336 over the current maximum federal SSI payment.

That's the core reason this proposal matters. A COLA helps your benefit keep pace with prices. This bill would try to lift the floor itself.

Who qualifies for SSI benefits

SSI isn't the same as Social Security retirement. The Social Security Administration runs the program, but SSI and Social Security have different funding sources. Social Security benefits are funded by payroll taxes, while SSI is funded by general tax revenues.

You could qualify for SSI if you're 65 or older, blind, or disabled, and you have very limited income and resources. That means this proposal is aimed at people with the least financial slack, including seniors who either didn't earn enough for a large Social Security retirement check or have other income low enough to meet SSI rules.

Not every retiree would see a change. If you receive only Social Security retirement and don't qualify for SSI, this bill wouldn't raise your retirement benefit.

What could change

The headline change is the proposed higher federal SSI benefit. The bill would raise monthly federal payments to at least 100% of the federal poverty level and keep that benchmark updated going forward.

The proposal also would loosen some rules that can reduce or block SSI eligibility. Current federal SSI resource limits generally cap countable assets at $2,000 for an individual and $3,000 for a couple. The bill would raise those limits to $10,000 for an individual and $20,000 for an eligible couple, then index the new thresholds for inflation and adjust them annually.

That matters because the current rules can penalize even modest emergency savings. A small bank account meant for car repairs, a medical bill, or a rent increase could push you over the limit if that money counts under SSI rules.

Your check math

Your actual increase would depend on your situation. The maximum federal SSI amount is only the starting point, because SSI checks are reduced by countable income.

If you also receive Social Security retirement, a pension, wages, or help from someone else, your SSI payment might be lower than the federal maximum. The proposal could still raise the cap, but your personal increase would depend on how those income rules apply to you.

State supplements could also matter. Most states and Washington, D.C., add a cash supplement to federal SSI payments, while a few states do not. That means two people with the same federal eligibility might receive different total monthly amounts depending on where they live.

Why the SSI asset limit still matters

The bill wouldn't turn SSI into a broad senior benefit. It would remain a needs-based program, so income and asset tests would still decide whether you qualify.

Some resources don't count under regular SSI rules, including a primary residence and one vehicle. But cash, bank accounts, retirement savings, stocks, mutual funds, and certain other assets can count. That's why the proposed increase in resource limits is more than a side issue. It could decide whether someone qualifies at all.

The proposal would also update income exclusions, including the small amount of income SSI rules ignore before reducing benefits. The bill would raise the non-employment income exclusion from $20 to $158 per month and the earned income exclusion from $65 to $512 per month, according to CNBC's review of the proposal.

Passing odds

This is still a proposal, not a guaranteed raise. The Supplemental Security Income Restoration Act of 2026 was introduced on March 5, 2026, by Sen. Elizabeth Warren and House sponsors including Reps. Adelita Grijalva, Jan Schakowsky, and James Moylan. As of Aug. 31, 2026, Congress had not turned it into law.

That status matters. A bill typically needs committee action, votes in both the House and Senate, and the president's signature before it becomes law. Congress hasn't turned the proposal into law yet, so your monthly SSI amount hasn't changed because of this bill.

The political challenge is cost. Raising SSI benefits and loosening eligibility rules would likely increase federal spending. CNBC reported that a 2024 version of the proposal would cost about $61 billion annually, based on Roosevelt Institute calculations, so lawmakers might ask how to pay for it, whether to narrow the bill, or whether to attach pieces of it to a larger package.

Bottom line

The proposed SSI legislation could provide a much larger financial boost than a standard COLA for low-income seniors. However, this extra support will only apply to those who meet SSI eligibility criteria, and the bill has not yet been passed into law

For now, keep watching the bill's status and any notices from the Social Security Administration. If your income or savings are close to SSI limits, it could be worth checking your eligibility again if Congress changes the rules.

A bigger benefit floor would be a major shift. Until lawmakers pass it, though, the safe move is to treat it as a possibility, not money already on the way into your retirement plan.

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