For the first time since 1975 – the year when automatic adjustments were implemented – the Social Security Administration has officially announced that there will be no increase in Social Security next year. To make up for this, President Obama is calling on Congress to approve $250 payments to more than 50 million seniors in the country.
“This additional assistance will be especially important in the coming months, as countless seniors and others have seen their retirement accounts and home values decline as a result of this economic crisis” the President said in his statement.
President Obama’s proposal is similar to other bills in Congress. Several key members of Congress, such as Rep. Charles Rangel (D-N.Y.), chairman of the Ways and Means Committee, have already expressed their interest in providing relief to seniors to make up for the freeze on any increase to Social Security benefits.
In addition, the $250 payment will also be applicable to those receiving disability benefits, veterans’ benefits, railroad retirees and retired public workers who don’t receive Social Security. Under this program, recipients will be limited to one payment.
The White House set the cost of the program at $13 billion.
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