Government Shutdown Delays Social Security COLA Announcement, Impacting Millions of Beneficiaries
Government Shutdown Delays Crucial Social Security Announcement for Millions
WASHINGTON – As the government shutdown stretches into its third week, tens of millions of Social Security beneficiaries are left in limbo, awaiting the announcement of the annual cost-of-living adjustment (COLA) that was originally scheduled for Wednesday. The new date for the announcement is now set for October 24, coinciding with the release of the September Consumer Price Index, which has also been postponed.
The COLA is a vital adjustment made each year to help beneficiaries keep pace with inflation. This year, projections from the Senior Citizens League and AARP suggest a modest increase of approximately 2.7%. However, with about 70.6 million people—including retirees, disabled individuals, and children—relying on these benefits, the delay is causing significant concern among recipients who fear that the upcoming increase may not adequately address rising living costs.
Sue Conard, a 75-year-old retired nurse from La Crosse, Wisconsin, recently joined fellow retirees in a lobbying effort at the U.S. Capitol, advocating for meaningful changes to Social Security benefits and healthcare protections. Conard expressed frustration over the current method of calculating the COLA, which relies on the standard Consumer Price Index (CPI) that does not account for the unique expenses faced by older Americans, particularly in healthcare.
“The issue of how the COLA is determined is flat-out wrong because health care is not factored into the CPI,” Conard stated passionately on the steps of the Longworth House Office Building.
In response to these concerns, some lawmakers have proposed legislation to shift the calculation to the Consumer Price Index for the Elderly (CPI-E), which better reflects the spending patterns of older adults. Despite efforts from Democratic lawmakers, including a previous proposal by Senator Bob Casey (D-Pa.), the legislation has yet to gain traction in Congress.
AARP CEO Myechia Minter-Jordan emphasized the importance of the COLA, stating, “It isn’t just a source of income—it’s a lifeline of independence and dignity for tens of millions of older Americans.” Yet, even with potential adjustments, many still struggle to cover basic expenses.
Vanessa Fields, a 70-year-old former social worker from Philadelphia, shared her own challenges, noting that her grocery bills have soared to around $1,000 per month. “The COLA doesn’t keep up with rising costs, and we’re going to be in bad shape if lawmakers don’t act,” she warned.
Despite the ongoing shutdown, the Social Security Administration has indicated that it will begin notifying recipients of their new benefit amounts in early December, with adjustments to retirement and Supplemental Security Income benefits set to take effect on January 1, 2026, without any delays.
The delayed announcement comes amid growing concerns about the financial stability of the Social Security program. A recent trustees report revealed that the program’s trust fund could be depleted by 2034, a year earlier than previously estimated, potentially reducing benefits to 81% of scheduled amounts.
Adding to the strain, the agency has laid off at least 7,000 employees from its workforce of 60,000 this year, exacerbating the challenges faced by remaining staff as they manage an increasing number of claims and inquiries.
As the clock ticks on the government shutdown, millions of Americans are left anxiously awaiting news that could significantly impact their financial futures.
