(NEXSTAR) – The announcement from the Social Security Administration regarding the 2026 Annual Expenditure Adjustment (COLA) has been postponed due to the ongoing government shutdown and the agency’s struggles with reduced staffing and services for beneficiaries.
The COLA is designed to assist recipients of Social Security and Supplemental Security Income (SSI) in maintaining their purchasing power amid inflation increases. This announcement usually comes in mid-October, following the Bureau of Labor Statistics’ (BLS) release of the Consumer Price Index (CPI) data for September. For 2026, this increase is projected based on the third quarter—July, August, and September of 2025.
This year, however, the BLS plans to miss its usual mid-October CPI release. Nevertheless, the official COLA announcement is still pending, according to the BLS.
The BLS has stated, “We will release the September 2025 Consumer Price Index (CPI) on Friday, October 24, 2025, at 8:30 a.m. Eastern Time.” They noted, “No other releases will be rescheduled or produced until normal government services resume.”
Typically, the Social Security Administration releases its official COLA announcement alongside the BLS’s September CPI data.
In the meantime, various senior advocacy groups speculate that future COLAs could be around 2.7%. They argue that this rate won’t adequately address the increasing costs of essentials such as food, housing, and healthcare. There are worries about how the government shutdown may further impact the SSA and its beneficiaries.
Shannon Benton, Executive Director at The Senior Citizens League (TSCL), expressed some relief at the fact that Social Security payments will be issued on time. “However, many in-house services related to Social Security have been suspended, including things like issuing proof of income and processing overpayments,” she noted.
Benton added, “Delayed access and disruptions in service can really undermine the stability that seniors depend on. Older adults deserve a government that functions well and prioritizes their needs, not a political stalemate.”
According to an emergency response plan released prior to the current shutdown, the SSA anticipated furloughing nearly 6,200 of its 51,825 employees (just under 12% of the workforce) for a five-day “partial shutdown,” which officially began on October 1st.
Currently, SSA representatives haven’t commented on which specific services might be affected due to the ongoing closure. The contingency plan does highlight the suspension of several operations, which includes verifying benefits and responding to public inquiries.
The SSA noted in their plan that payments to beneficiaries would remain uninterrupted and that they would halt activities not critical to the timely payment of benefits.
However, TSCL Director Shannyn Benton pointed out that delaying the COLA announcement raises further concerns about the SSA’s efficiency. “It’s already a confusing period for retirees,” she remarked. “Even a slight change in the announcement date doesn’t help. Seniors are trying to plan their budgets, and any delays just heighten uncertainty.”
