A newly reintroduced Social Security proposal would change how annual cost-of-living adjustments are calculated by requiring the government to use whichever produces the larger increase: the existing Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W, or a separate index reflecting spending by Americans aged 62 and older.
The provision is part of the Social Security 2100 Act, introduced in the House as H.R. 9519 by Representative John B. Larson, a Connecticut Democrat, on June 29, 2026. Senator Richard Blumenthal, also a Connecticut Democrat, introduced the Senate companion, S. 5042, on July 21. The proposal has not become law, so it does not change current benefits or the next scheduled COLA.
What the COLA Provision Would Change
Under current Social Security rules, the Social Security Administration determines the annual COLA by comparing the average CPI-W for July, August and September with the average for the same quarter in the last year a COLA took effect. The 2026 increase is 2.8 percent, raising the estimated average retired-worker benefit by about $56 a month.
Section 102 of H.R. 9519 would calculate Social Security COLAs using the higher annual percentage produced by CPI-W or the Consumer Price Index for Elderly Consumers, called CPI-E.
According to the published bill text, the change would apply to COLA computation quarters ending in calendar years 2027 through 2036. It is therefore a temporary 10-year provision in the current bill, rather than a permanent change.
The bill also directs the Bureau of Labor Statistics to publish a monthly CPI-E measuring price changes for consumption typical of people aged 62 and older. Until an official CPI-E is available, the legislation would use the agency’s existing research series, R-CPI-E, according to the legislation released by Larson.
Latest Verified Status
As of August 4, 2026, both measures remain at the introductory stage. H.R. 9519 was referred to the House Ways and Means Committee, as well as the Education and Workforce and Energy and Commerce committees. S. 5042 was read twice and referred to the Senate Finance Committee. Neither official record lists a committee vote, floor vote or enactment.
The Senate bill is sponsored by Blumenthal and initially cosponsored by Democratic Senators Elissa Slotkin of Michigan, Ben Ray Luján of New Mexico, Sheldon Whitehouse of Rhode Island and Tammy Duckworth of Illinois. The official Senate bill record confirms its introduction and referral to the Senate Finance Committee.
Larson’s office describes the legislation as a broader package that would increase benefits, strengthen minimum benefits and raise additional revenue from high earners.
Why CPI-E Is Debated
Supporters argue that an index based on older households’ spending may better reflect expenses such as medical care and housing. The Government Accountability Office found that using CPI-E historically would generally have produced small annual benefit increases compared with CPI-W, with the differences accumulating over a long retirement.
However, CPI-E is not currently an official federal inflation index. The Bureau of Labor Statistics describes R-CPI-E as a research measure and warns that its sample is comparatively small.
The areas, stores and items priced are drawn from broader urban-consumer data rather than a survey created specifically for older Americans, according to the agency’s CPI-E research guidance.
The Government Accountability Office has also said that changing indexes involves tradeoffs because higher COLAs would increase both benefit payments and Social Security program costs.
Why the Bill Matters Now
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The proposal arrives as Social Security faces a narrowing financing window. The 2026 trustees report projects that the Old-Age and Survivors Insurance Trust Fund can pay full scheduled retirement and survivor benefits through the fourth quarter of 2032.
After reserves are depleted, continuing income would cover about 78 percent of scheduled benefits unless Congress changes taxes, benefits or both. The projection does not mean Social Security payments would disappear, but it indicates that lawmakers would need to act to prevent an across-the-board reduction in scheduled benefits.
What Happens Next
For the COLA formula to change, identical legislation would need to pass the House and Senate and be signed by the president. Committee hearings, amendments and negotiations could substantially revise the current language.
Until that happens, beneficiaries should treat the measure as pending legislation. Current COLAs remain tied solely to CPI-W, and the official 2027 adjustment will still be determined under existing law.
The next significant development would be formal committee consideration in either chamber. Without committee approval and subsequent votes in Congress, the CPI-E provision will not affect Social Security payments.
