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Introduced July 31, 2025 by Mazie Hirono · Last progress July 31, 2025
Creates and uses a new Consumer Price Index for Elderly Consumers (CPI–E) to compute Social Security cost-of-living adjustments, directs the Bureau of Labor Statistics to publish the CPI–E monthly, and protects increases from being counted against SSI or Medicaid eligibility. It also changes how very high earnings are reported and taxed above the Social Security wage/benefit base after 2025 and adds a small credit in the Social Security benefit formula for surplus earnings above a new bend point. The bill phases in these changes: the CPI–E publication begins in the year after enactment, the COLA computation change applies in later computation quarters, and most wage/tax and benefit formula changes take effect for calendar years after 2025 (with related tax-year rules for self-employed workers). Funding is authorized as needed for the BLS work.
The bill would better align Social Security COLAs with older Americans' inflation exposure and protect low‑income beneficiaries, at the cost of higher program spending and additional administrative funding needs.
Seniors (age 62+) would receive Social Security COLAs tied to CPI–E that better reflect their spending (especially on medical care), helping preserve their purchasing power.
Low‑income beneficiaries (SSI recipients and Medicaid enrollees) would be protected from losing eligibility because COLA-driven increases to title II benefits are excluded as countable income/resources.
Publication of monthly CPI–E data would increase transparency about older Americans' inflation experience and provide policymakers and consumers more timely information.
Higher COLAs tied to CPI–E would raise Social Security outlays, increasing federal spending and potentially widening deficits or accelerating long‑term strain on the Social Security trust funds absent offsetting reforms.
The Bureau of Labor Statistics will need additional funding and staff to produce monthly CPI–E (authorized as 'such sums as necessary'), which may require budget increases or divert resources from other priorities.