WASHINGTON (AP) - President Barack Obama wants 50 million
seniors to get $250 payments to make up for no increase in Social
Security next year. But it's not clear yet where the money will
The Social Security Administration is scheduled to announce
tomorrow that there will be no cost-of-living increase next year.
By law, increases are pegged to inflation, which has been negative
The White House puts the cost of Obama's proposal at $13
billion. The president says he won't allow the payments to come out
of Social Security trust funds. A senior administration official
says Obama is open to borrowing the money, which would increase the
Senate Majority Leader Harry Reid says he supports the $250
payments. So does House Ways and Means Committee Chairman Charles
Other lawmakers say seniors shouldn't get the extra payments
because the formula doesn't call for it.
(Copyright 2009 by The Associated Press. All Rights Reserved.)