Social Security alert: Government shutdown to delay key COLA announcement? Here’s how Americans will be impacted
As the prolonged government shutdown delays crucial inflation data, millions of Americans who depend on Social Security might be forced to wait longer to learn how much their benefits will increase next year.
The government shutdown will delay the announcement of Social Security benefit increases for 72 million Americans.(Unsplash)
The annual cost-of-living adjustment, or COLA, is determined by the Social Security Administration using the Consumer Price Index for September. However, the Bureau of Labor Statistics has suspended data collection during the shutdown.
How social security announcement will be impacted?
Usually announced in mid-October, the announcement establishes benefit increases for almost 72 million Americans who are survivors, retirees, or handicapped. According to officials, delays in processing will probably cause the inflation report and the eagerly anticipated COLA update to be postponed even if Congress strikes an agreement swiftly to reopen the government.
The federal shutdown will prolong the time it takes for millions of retirees and other beneficiaries of Social Security to figure out how much increase they will get in their 2026 checks.
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SSA and COLA
Every October, the SSA releases the COLA following the Bureau of Labor Statistics’ September CPI report. However, unless Republicans and Democrats resolve their political impasse, the shutdown will prevent the economic data from being released on Friday as planned.
The COLA announcement might still be delayed, though, even if the government shutdown ends, because staff will need to analyse the economic data.
“While the delay of a COLA announcement for Social Security recipients may not feel like a big deal, it can be for seniors who budget well in advance with limited income,” Alex Beene, who works as financial literacy instructor for the University of Tennessee at Martin, told Newsweek. The Social Security Administration will reveal the cost adjustments that recipients can anticipate receiving for the upcoming year in October, the expert continued.
Any delay in the announcement could cause beneficiaries to have trouble comparing their expected income from the program to their cost of living in 2026, Beene said.
Social Security and SSI payouts for over 70 million people saw a 2.5 percent COLA in 2025.
Will Govt Shutdown impact Social Security Payments?
Last week, the SSA announced that Supplemental Security Income and benefit payments would continue even in case of government shutdown.
“We want you to know that during the federal government shutdown, payments to all people who currently receive Social Security benefits and Supplemental Security Income (SSI) will continue with no change in payment dates. You will still receive your payments on time,” the SSA statement read.
The Social Security Administration stated that they “cannot provide proof of benefits letters, or update or correct earnings records,” but that “these in-person services will resume when the federal government is operating normally.”
