A newly introduced proposal in Congress could bring meaningful financial relief to millions of Americans relying on Social Security. The Social Security Expansion Act, backed by Senator Bernie Sanders and several progressive lawmakers, aims to boost monthly benefits by an additional $200 for six months in 2026, totaling $1,200 in supplemental aid.
If passed, the temporary increase would begin in January 2026, giving retirees, disabled individuals, and survivors a cushion against rising living costs. Supporters say the added income would help older Americans better manage mounting expenses from healthcare, housing, food, and medication.
What the Bill Would Change in 2026
The legislation—filed as S.770 in the Senate and H.R.1700 in the House—seeks to provide a comprehensive expansion rather than a one-time bump. Under the proposal, beneficiaries would receive:
- An additional $200 per month for six months
- A yearly increase of $2,400 without changing the scheduled 2.8% COLA adjustment
- A recalculation of cost-of-living adjustments from the CPI-W index to the CPI-E, better reflecting seniors’ real expenses
- A higher minimum benefit set at 125% of the federal poverty line for long-term workers
- Expanded support for children of disabled or deceased parents, extending benefits until age 22
- A merger of trust funds to streamline management and secure projected solvency until 2100
Federal data shows Social Security continues to be an essential safety net. In 2023 alone, the program kept 27.6 million Americans out of poverty, including 19.5 million seniors. Yet many still struggle: 40% of retirees rely on Social Security as their main income, and 14.3% depend on it for more than 90%.
Why the Expansion Matters
The average monthly Social Security payment is about $1,838, leaving little margin for unexpected costs. As inflation outpaces fixed incomes, the proposed boost could temporarily ease pressures on households that depend heavily on these benefits.
The bill also acknowledges long-standing concerns about how COLA adjustments are calculated. Shifting to the CPI-E index would better track seniors’ rising living expenses—especially medical premiums and rent—which the current system often fails to reflect.
How Lawmakers Plan to Fund the Expansion
The expansion is designed to strengthen Social Security without raising taxes on 91% of American households. Instead, the proposal raises the earnings cap for contributions. Currently, only wages up to $176,100 are taxed for Social Security, meaning high earners stop contributing after that threshold.
Under the plan, anyone making over $250,000—including top executives and CEOs—would pay the full 12.4% tax on all income above that level.
In addition, the bill would impose a 12.4% tax on investment and business income for the ultra-wealthy, raising the rate from 3.8% to 16.2%. These adjustments could generate $1–2 trillion over 10 years, helping fully finance the program’s improvements.
Even the Social Security Administration has warned of potential cuts by 2033–2035 if the system isn’t strengthened. Economists estimate the expansion could inject $168 billion per year into the economy, boosting sectors like healthcare and retail as younger generations age into retirement.
