Social Security recipients could receive a $1,400 one-time payment: Here’s the proposal and what needs to happen next

Social Security beneficiaries will learn their 2026 Cost-of-Living Adjustment (COLA) in October. The Social Security Administration calculates the COLA using consumer price data—particularly changes in categories that carry more weight in the CPI-W, such as housing, transportation, and groceries. If prices rise in these areas, it could significantly affect the model’s projections.

While the COLA helps offset inflation-related losses in purchasing power each year, research shows that benefits have lost substantial value over the past two decades. The Senior Citizens League (TSCL) published a report in 2024, which revealed that since 2010, the purchasing power of benefits has fallen by 20 percent. The senior advocacy group, which petitions Congress to improve living standards for older Americans, has proposed a one-time payment of $1,400 to help address the decline. This amount is short of the $4,440 per year increase Congress would need to provide to undo all the losses in the value of benefits since 2010.

“The data in this study shows what seniors have been telling TSCL for years: Social Security checks aren’t keeping up with inflation,” said TSCL Executive Director Shannon Benton.

The $1,400 payment proposal is one way to ease the loss in buying power since 2010, but more action is needed. So far, no leaders are championing this proposal, but other TSCL priorities have a base on Capitol Hill.

The group is also urging Congress to develop an inflation measure that better reflects the unique spending patterns of seniors. Such an index would, for example, give more weight to healthcare costs than the CPI-W does, since older adults typically require more medical care. Vermont Senator Bernie Sanders has been an advocate for establishing a Consumer Price Index for the Elderly, which the Bureau of Labor Statistics would manage.

Benton also highlighted the 7.3 million seniors living on $1,000 a month or less—below the poverty line. Although the national poverty rate has declined in recent years, the rate among older Americans is rising, underscoring the need for reforms to protect both beneficiaries and the Social Security program itself.

How is the COLA calculated?

The SSA compares the average CPI-W for July, August, and September of the current year to the same period of the previous year. The percentage difference determines the COLA, which is applied to Social Security and Supplemental Security Income (SSI) payments starting in January of the following year.

How much will the 2026 COLA be?

Based on July’s data alone, the 2026 COLA would be around 2.4 percent. The actual increase will be announced in mid-October, once August and September data are included. The latest projection from TSCL estimates a 2.7 percent increase, anticipating further price hikes in the coming months.

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