Today, the Social Security Administration announced that there will be no cost-of-living increase for 57 million Social Security beneficiaries next year because consumer prices have fallen.
This announcement marks the first time that Social Security benefits have not been increased year over year since the cost-of-living adjustment was put into effect in 1975.
Hoping to off-set the strain this will put on seniors and other Americans such as veterans and people with disabilities, President Obama is calling on Congress to send a second round of $250 in emergency recovery assistance. The original $250 relief payment was paid out of general revenue. That would likely be the case for the second payment as well.