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Congress Urged to Pass $250 One-time Payment for Seniors

October 14, 2005

Washington - US President Barack Obama on Wednesday has urged Congress to approve the $250 one-time payment that will be given to more than 50 million seniors to compensate for the suspension of inflation-based increase on Social Security benefits.

Generally, Social Security Administration (SSA) increases the cost-of-living allowance every year based on inflation rate. However, inflation is expected to remain flat or at least low for the next two years due to economic recession, prompting the agency to defer the adjustments.

In a statement, Obama said the one-time payment “will help seniors, who are the hardest hit sector by recession, pay their basic needs in the coming months.”

According to previous reports, the additional assistance will come from the general tax revenues and not from the Social Security trust funds which is facing a looming budget deficit as it pays out benefits more than the taxes it collects.

The White House estimated that the proposal will cost approximately $13 billion as it will also cover disabled workers and retired public employees who are receiving federal benefits.

Meanwhile, political analysts believe the one-time payment for Social Security beneficiaries will be supported by several Democratic lawmakers who earlier promised to provide additional benefits to retired workers.

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