Reed & Whitehouse Seek to Boost Social Security Benefits for Seniors

As older Americans struggle to keep pace with rising expenses, Reed & Whitehouse say Congress must fix flawed COLA formula that is shortchanging today's retirees and weight it more to factor in health care costs

WASHINGTON, DC - The Trump Administration announced the latest Social Security Cost-of-Living Adjustment (COLA) this month: a paltry 2.8 percent increase that is unlikely to keep pace with the cost of surging healthcare premiums and other price hikes fueled by President Donald Trump's irresponsible tariff policies and tax laws that are geared toward billionaires. This amounts to an average of $52 per month per recipient starting in January 2026. But the projected 11.6 percent increase in Medicare Part B premiums next year would wipe out about 40 percent of the COLA increase for retirees.

Over 70 million Americans receive their earned Social Security benefits, and for 40 percent of older Americans, Social Security is their primary source of income.

This week, U.S. Senators Jack Reed (D-RI) and Sheldon Whitehouse (D-RI) joined U.S. Senator Richard Blumenthal (D-CT) in introduced the Boosting Benefits and COLAs for Seniors Act (S.3059). This legislation seeks to protect and expand Social Security benefits for older adults. As Social Security benefits have failed to accurately account for rising costs and inflation, the Boosting Benefits and COLAs for Seniors Act makes necessary changes to the cost-of-living adjustment (COLA) formula, better supporting older Americans who rely on Social Security benefits.

"This overdue measure makes necessary adjustments to Social Security benefits-more accurately accounting for rising prices and inflation-to better support older Americans," said Senator Blumenthal. "Our nation's seniors are struggling to afford basic necessities like food, medication, and clothing, and the overall cost of living index may not reflect their particular needs. This legislation ensures that older Americans have the support they deserve to live with dignity."

"The Trump Administration is boosting inflation and shortchanging seniors. Rapidly rising costs and health care price spikes mean more Social Security recipients are feeling the pinch. I am concerned the latest COLA is inadequate and seniors on fixed incomes will feel the real value of their Social Security payments decrease. Our seniors deserve a bump in Social Security pay to ensure their purchasing power keeps pace with economic reality," said Senator Reed. "President Trump must join Democrats in trying to get costs under control. We must protect Social Security, strengthen it, and prevent partisan detractors from further undermining it and trying to reduce benefits or cut the COLA altogether."

"Rhode Island seniors pay into Social Security over a lifetime of hard work so they can enjoy a dignified retirement," said Senator Whitehouse, a founding member of the Expand Social Security Caucus. "As the Trump administration and Congressional Republicans drive up costs for Rhode Islanders, our commonsense legislation increases benefits and protects the promise of Social Security for future beneficiaries."

Whitehouse's Medicare and Social Security Fair Share Act would protect the solvency of Social Security and Medicare for at least 75 years by requiring the nation's highest earners to contribute a fairer share of their income into the system. Reed and Whitehouse also cosponsored the Social Security Fairness Act, which was signed into law by President Joe Biden in January. The legislation eliminated two policies that reduced Social Security benefits for public service employees.

The Social Security Administration has paid COLAs since 1975.

The Boosting Benefits and COLAs for Seniors Act directs the Social Security Administration to adjust benefits based on the Consumer Price Index for Americans aged 62 or older (CPI-E), whereas current benefits are based off the Consumer Price Index for Urban Wage Earners (CPI-W). The CPI-E takes into account more of the costs incurred by older Americans, such as medical expenses-making it more a more reflective index to use when calculating benefits.

Forbes.com notes: "While the COLA increase is a welcome boost in a small benefit check, not many people realize - until they receive a Social Security check - that Medicare premiums are deducted from it. According to projections from AARP published August 12, 2025: 'How Social Security COLA May Increase 2026 Benefits', premiums could rise nearly 12%, from $185 in 2025 to an estimated $206.50 in 2026. For many retirees, this will offset the COLA. A retiree with a $2,000 monthly benefit might see a gross increase of $54, but after Medicare deductions, the net increase could be as little as $32.50."

The legislation is also cosponsored by U.S. Senators Kirsten Gillibrand (D-NY), Ruben Gallego (D-AZ), John Fetterman (D-PA), Bernie Sanders (I-VT), Peter Welch (D-VT), Elizabeth Warren (D-MA), and Angela Alsobrooks (D-MD).

The Boosting Benefits and COLAs for Seniors Act is supported by a number of organizations, including: the American Federation of State, County, and Municipal Employees (AFSCME), Social Security Works, California Alliance for Retired Americans, Alliance for Retired Americans, Justice in Aging, National Committee to Preserve Social Security and Medicare, National Education Association, National Organization of Social Security Claimants' Representatives, New York StateWide Senior Action Council, Strengthen Social Security Coalition, and Women's Institute for a Secure Retirement.

"Social Security's annual automatic cost-of-living adjustment is among its most important features. But benefits are slowly eroding because the COLA is based on a formula, the CPI-W, that under-measures health care costs. Those costs are currently skyrocketing, with Medicare Part B premiums projected to increase by twice as much as last year. The Boosting Benefits and COLAs for Seniors Act would correct this by incorporating a more accurate formula, the CPI-E. Social Security Works applauds Senator Blumenthal and his colleagues for introducing this important legislation," said Nancy Altman, President of Social Security Works