Social Security's Trump Bump-Led 2027 COLA Is Doing Something That Hasn't Been Witnessed This Century
The fifth-largest Social Security raise over the last 35 years is only part of the story.
In the year 2027, Social Security recipients are set to experience a cost-of-living adjustment (COLA) that has never been seen before in the 21st century. The increase, which stands at 3.6%, is largely due to President Donald Trump's policies, including tariffs and the Iran war. The tariffs, first introduced in April 2025 and reimposed in July 2026, have contributed to a 2.9 percentage point increase in goods price inflation.
The war in Iran, which began in February 2026, further exacerbated inflation by disrupting the global energy supply and driving up gas and diesel prices. This combination of factors has resulted in the largest annual COLA increase since 1993, surpassing previous record highs. Additionally, this is the sixth consecutive year that Social Security benefits have increased by more than 2.5%, a feat that has not been witnessed since the 1980s.
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