A bill currently sitting in Congress will change the math behind every annual Social Security increase for the next decade. It is called the Social Security 2100 Act and was re-introduced into the House as H.R. 9519 on June 29th, 2026 by Representative John Larson with a Senate companion following in July.
How the COLA Works Right Now
Each year, the Social Security Administration calculates the COLA by comparing the third-quarter inflation with the same period the year before. The index used is the CPI-W, which tracks spending by urban wage earners and clerical workers. For 2026, this formula resulted in a 2.8% increase, amounting to about $56 per month for the average retired worker, and typically less for recipients of SSDI benefits, whose benefits are typically smaller.
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Notice who that index measures. Working people, not retirees, and not people who have left the workforce due to a disability. Critics have argued for years that the CPI-W underweights what beneficiaries actually spend their money on, especially healthcare and housing, which tends to rise faster than overall prices.
What the Bill Would Change
The bill would not change the current formula. Instead, for COLAs calculated from 2027 through 2036, the government will run the numbers twice: under CPI-W and under CPI-E, which is an index based on the spending of Americans aged 62 and over. Whichever gives the larger increase will be that year’s COLA.
Your raise could never be smaller under this approach. In some years, it will be the same. In other years, particularly when medical costs surge, it could be significantly bigger. The gap is usually small, often half a percentage point or less in any given month, but even small differences accumulate over a lifetime of benefits.
The bill goes beyond the cost-of-living adjustment (COLA) and proposes:
- A universal benefit increase for all current and future recipients. A minimum benefit of at least 125% of the federal poverty level for those who worked long careers at low wages. This works out to approximately $1,660 per month for a single individual under the 2026 guidelines.
- Tax credits for unpaid family caregivers who provide at least 960 hours of care each year for up to five years. This is relevant for households where one partner stepped away from work to care for a disabled family member.
- New taxes to finance these changes, including applying a 12.4% Social Security tax on wages above $400,000. Currently, earnings are only taxed up to $184,500 in 2026.
Why SSDI Recipients Should Pay Attention
Here is a quirk worth noting. CPI-E is designed for people 62 years old and older, but SSDI recipients who are decades younger would receive the same adjusted COLA. This works in their favor. Disabled workers often spend more on medical care, prescription drugs, and housing than on commuting or dining out, like seniors.
Living on a smaller budget also means that any formula that better tracks real costs matters more, not less.
What Has Not Happened Yet
The bill has been introduced. That’s all. It’s in committee, hasn’t passed either chamber, and doesn’t change anything about your current benefits or the next scheduled COLA.
Larson has been introducing versions of this plan for over a decade, but none have reached a floor vote. However, there is real pressure behind it: the 2026 Trustees Report projects that the retirement and survivor trust funds could exhaust their reserves in late 2032 if no action is taken. Still, posts about bigger checks being on the way are incorrect, and budgeting for money that Congress has not yet approved is a mistake that we urge all clients to avoid.
From Hardship to Hope
Whether Congress rewrites the COLA formula or not, it is important to first address the benefits that it provides, as the current SSDI approval process turns away far too many people.
If your SSDI claim is denied, or you want to make sure your application is done right the first time, contact Tabak Law to schedule a free consultation. The formula may change, but our commitment to fighting for you will not.
