Congress is considering several Social Security proposals that could eventually affect millions of Americans receiving retirement, SSI or SSDI benefits, although none of the major changes discussed here have become law.
One of the most significant ideas is the Social Security Expansion Act, which would permanently raise monthly benefits by about $200, or roughly $2,400 a year.
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The proposal would also change how Social Security is funded by applying taxes to income above $250,000, including certain investment income.
What could change for Social Security recipients?
Supporters argue that the extra $200 would provide a much larger increase than a typical annual cost of living adjustment.
The AOL report notes that the 2026 COLA of 2.8 percent increased the average monthly Social Security payment by only about $56.
Under the proposed legislation, the additional $200 would be permanent rather than tied to one year’s inflation calculation.
The bill would also aim to extend Social Security’s long-term solvency. Supporters say taxing income above $250,000 could help extend the trust fund by 75 years.
That matters because the Old Age and Survivors Insurance trust fund is currently projected to run short of reserves by the end of 2032. Without legislative action, incoming payroll taxes would cover only about 78 percent of scheduled benefits.
Could SSI and SSDI payments be affected?
Other proposals being debated in Congress could affect how disability and low-income benefits are calculated, although the exact impact would depend on which legislation, if any, eventually passes.
Any changes to benefit formulas, eligibility requirements or Social Security funding could potentially influence SSDI recipients because SSDI is financed through the Social Security system.
SSI works differently because it is needs-based, but congressional changes to benefit levels, eligibility rules or federal payment standards could still affect recipients.
The most important point is that these remain proposals.
The AOL report describes the Social Security Expansion Act as “a mere proposal, not law” and says its chances of passage are currently considered low.
That means recipients shouldn’t change their budgets based on a possible $200 increase or any other proposed adjustment yet.
Until Congress passes legislation and it is signed into law, current SSI and SSDI payment rules remain in place.
