In response to ongoing inflation and increased living expenses, lawmakers have introduced a proposal to raise Social Security, SSI, and SSDI benefits by $2,400 per year beginning in 2025.
This increase—part of the Social Security Expansion Act—would provide eligible recipients with an additional $200 per month, helping offset the rising costs of groceries, housing, medical care, and more.
Here’s a detailed look at the proposal, how it affects different beneficiaries, and what it means for the COLA (Cost-of-Living Adjustment) formula moving forward.
Overview of the $2,400 Benefit Increase
The $2,400 rise in benefits is designed to support current and future recipients of:
- Social Security Retirement Benefits
- Supplemental Security Income (SSI)
- Social Security Disability Insurance (SSDI)
- Survivor and Family Benefits
This legislation was introduced by Senator Bernie Sanders and seeks to ensure that no senior or disabled individual lives in poverty
Key Details: $2,400 Social Security Expansion Act Proposal
| Category | Details |
|---|---|
| Year Proposed | 2025 |
| Monthly Increase | $200 |
| Annual Increase | $2,400 |
| Applies To | SSI, SSDI, Retirement, Survivor, and Family Benefits |
| Introduced By | Senator Bernie Sanders |
| Funded By | Payroll taxes on income above $250,000 |
| COLA Formula Update | Shift from CPI-W to CPI-E |
| Approval Status | Proposed, not yet law |
What Is Changing in the COLA Calculation?
The Social Security Expansion Act also proposes to change how COLA increases are calculated. Currently, COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
This act would switch to the Consumer Price Index for the Elderly (CPI-E), which better reflects the spending habits of seniors, especially in areas like healthcare and housing.
Why it matters: CPI-E would likely result in higher annual COLA increases, leading to more substantial benefit adjustments over time.
Who Will Qualify for the $2,400 Benefit Boost?
If passed, the $2,400 annual boost will be automatically given to:
- All current Social Security recipients
- Retirees, regardless of age
- SSDI and SSI beneficiaries
- Survivors receiving benefits from deceased spouses or parents
- Individuals receiving Family Benefits
There’s no application required—eligible recipients would receive the increase automatically, disbursed on their regular payment schedules.
How Will the Increase Be Funded?
Currently, only income up to $176,100 is subject to Social Security payroll taxes. The proposed act suggests applying the payroll tax to incomes above $250,000, creating a new funding stream to extend the life of the Social Security Trust Fund and finance the $2,400 benefit expansion.
When Would the Payments Start?
If the act is passed, the $200 per month would be deposited alongside regular Social Security benefits. The payment schedule would remain unchanged:
- SSI: Paid on the 1st of each month
- SSDI and Retirement Benefits: Paid based on the recipient’s birth date
- Survivor Benefits: Follows the same pattern as SSDI/Retirement
Current Status of the Proposal
As of August 2025, the proposal is still under congressional review. While it has strong support from progressive lawmakers, it faces political hurdles before it can be signed into law.
Recipients are encouraged to track updates via Congress.gov or Sanders.senate.gov and to plan finances accordingly until a final decision is made.
The $2,400 increase in Social Security, SSI, and SSDI benefits could provide critical relief for millions of Americans grappling with rising expenses. If passed, this initiative would not only increase monthly payments but also adjust the COLA formula to better reflect the actual cost of living for seniors.
Until it becomes law, recipients should stay informed, prepare for potential changes, and utilize available government assistance programs as needed.
FAQs
Is the $2,400 Social Security increase approved for 2025?
No, it is still a proposed bill under review in Congress. Approval is pending legislative action.
Will I need to apply for the $2,400 increase?
No. If passed, the payment will be automatically added to your regular Social Security deposit.
Who qualifies for the $2,400 annual raise?
All current and future Social Security recipients, including SSI, SSDI, retirees, survivors, and family beneficiaries, will be eligible.