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Republicans proposed a 21 percent increase for the Social Security budget from 2025 to 2026, marking a substantially higher uptick in the retirement program's funding compared to past years. The budget recommendations for the following years are also substantially lower than the 21 percent sought from 2025 to 2026. Why It Matters Roughly 70 million Americans receive Social Security payments each month, and many rely on these funds for the bulk of their living expenses once they reach retirement.
The Social Security Administration faces a funding shortfall , however, with money for full payments estimated to run out by the mid-2030s. What To Know In the Republican budget, lawmakers proposed a 21 percent boost to Social Security from 2025 to 2026. But from 2026 to 2027, the budget is set to only go up by 9 percent.
And the following years will see smaller upticks of 6 percent until 2030, the budget proposal shows. Before 2026, the Social Security budget only increased in the 5 percent to 7 percent range. Higher inflation and steeper cost-of-living adjustments (COLAs) could account for the substantial budget uptick from 2025 to 2026, experts say.
Social Security budget is constantly changing based on inflation, the number of beneficiaries and any policy changes affecting benefits or payroll taxes. What People Are Saying Kevin Thompson, finance expert and founder/CEO of 9i Capital Group, told Newsweek : "The expectations of higher inflation and larger COLAs seem to be one of the main causes. However, economists generally believe inflation will be much lower in the coming years, while interest rates may remain higher in the future thus requiring lower amounts in future years.
" Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek : "The big increase for Social Security is more in perception than reality. In 2025, there was a significant drop in the cost-of-living adjustment compared to the last few years during and immediately following the pandemic. This means that the uptick for 2026 is going to appear greater in comparison, even if the true percentage is a more modest amount.
Assuming COLA doesn't change as substantially in future years, the future increases will be more steady and appear smaller." Aaron Cirksena, founder & CEO of MDRN Capital, told Newsweek : "The big increase in Social Security's budget for 2026 is largely due to more Baby Boomers hitting retirement and inflation-driven cost-of-living adjustments. After that, spending growth slows because the wave of new retirees evens out and COLA adjustments become more predictable.
" What Happens Next The years following 2026 are likely to see lower budget increases as inflationary costs of living even out. But the political parties in Congress can also differ in their Social Security efforts. "Politically, Republicans tend to focus on tax cuts and extending the Tax Cuts and Jobs Act (TCJA), which can limit government revenue and put pressure on spending," Thompson said.
"They generally push for less social spending overall. Democrats , on the other hand, prioritize maintaining or increasing funding for Social Security and other mandatory programs, resisting any proposed cuts." But seniors should establish their own retirement plans beyond Social Security to ensure sufficient living funds, Cirksena said.
"For retirees, the key takeaway is this: Social Security will change, but if you have a strong retirement plan that doesn't rely on it entirely, you won't be left scrambling.".
