The Social Security Administration (SSA) announced on Tuesday, October 14th, that it will soon release the cost-of-living adjustment (COLA) plan related to next year’s social security benefits. The SSA also confirmed that the current government shutdown will not affect the distribution of welfare payments for the year 2026.
Last weekend, the Bureau of Labor Statistics (BLS) issued a statement confirming that the Consumer Price Index (CPI) report for September 2025 will be released on October 24th. In its statement on Tuesday, the SSA mentioned that the BLS’s release would enable them to “ensure accurate and timely payment of benefits within the necessary statutory deadlines.”
The BLS further clarified that “no re-scheduling or release of any other reports and data will occur until regular government services are restored.”
A spokesperson for the SSA told the “Epoch Times” on Tuesday that the agency will use the CPI data released by the BLS to calculate and announce the 2026 COLA on October 24th simultaneously.
The SSA spokesperson added, “Approximately 75 million Americans will see adjustments to their social security and Supplemental Security Income (SSI) benefits starting January 1, 2026, based on the 2026 COLA, without any delays due to the current government funding interruption.”
The SSA relies on the urban wage earners CPI for the third quarter of each year (July, August, and September) to determine the COLA for retirement and disability benefits to be paid out the following year.
The Social Security Administration is expected to announce next year’s COLA shortly after the BLS releases the CPI data for September. The CPI report was originally scheduled to be released on October 15th.
However, due to the ongoing government shutdown, the collection, processing, and publication of other official economic data by the BLS will continue to be suspended until normal operations resume. The government shutdown began on October 1st after lawmakers failed to reach a consensus on a temporary funding plan.
The Senior Citizens League, one of the largest elderly advocacy groups in the U.S., predicted last month that the 2026 cost-of-living adjustment would be 2.7%. This adjustment would result in an average monthly increase of $54 for retired individuals, raising the benefit from $2,008 to $2,062.
In 2025, millions of social security and SSI recipients received a 2.5% COLA increase. The COLA increase in 2024 was 3.2%. According to the Senior Citizens League, the average annual COLA increase over the past twenty years is approximately 2.6%.
The rescheduled CPI report is set to be released just before the Federal Reserve’s policy meeting on October 28th to 29th. The Federal Reserve restarted its accommodative policies last month, lowering the federal funds rate by 0.25% to a range of 4% to 4.25% to support the labor market.
As of Tuesday, there has been little progress in Congress regarding reopening the government. Officials from the Trump administration have initiated layoffs during the shutdown period, with Vice President Vance warning of further layoffs on Sunday, October 12th.
President Trump announced last weekend that he has instructed Defense Secretary Pete Hegseth to “use all available funds to pay military salaries.” He also pledged to negotiate with the Democrats on healthcare issues once they agree to reopen the government. Democrats are hoping to extend certain healthcare subsidy programs after they expire at the end of the year.