This summer, many Americans will receive unexpected financial relief. This isn't a myth or an empty promise: it's official. Social Security, SSI, and the IRS are issuing additional or early payments that could make a big difference in thousands of households.
Here we explain what's happening, who benefits, and how to make the most of this opportunity.
Social security increase: a little more each month
Every year, Social Security adjusts its payments to keep up with inflation. This adjustment, known as the COLA (Cost-of-Living Adjustment), will be 2.5% for 2025.
What does that mean in real numbers?
- An average retiree who receives $1,927 per month will now get $1,976.
- That's $49 more each month, or about $588 per year.
This increase isn't limited to retirees. It also impacts widows, widowers, people with disabilities (SSDI), and other beneficiaries. The best part is that you don't have to do anything to receive it: the adjustment is automatic and will be reflected in January payments.
SSI: double payment in August due to a calendar technicality
There's another surprise on the way for those who receive Supplemental Security Income (SSI). Because September 1, 2025, falls on a holiday (Labor Day), the scheduled payment is moved up to Friday, August 29.
This means that:
- There will be two deposits in August (one on the 1st and another on the 29th).
- There won't be a payment in September, but it's not a loss: it's simply moved up.
For those with limited income, that second check at the end of August can be key to covering rent, food, or school supplies.
The IRS begins to release withheld refunds
After a long wait due to the PATH Act, the IRS has finally started sending refunds. The payments include the EITC and the Additional Child Tax Credit (ACTC).
Who qualifies?
- Families who filed early, especially with dependent children.
- Those who filed electronically and selected direct deposit.
Many of these refunds exceed $2,000, and in families with two or more children, they can exceed $5,000. They arrive just in time to face back-to-school expenses or catch up on outstanding bills.
Higher minimum wage in several cities
In addition to Social Security and the IRS, hourly workers are also seeing improvements. Various cities and states have increased the minimum wage starting in July:
- Washington D.C.: $18/hr
- Los Angeles: $17.87/hr
- Chicago: $16.60/hr
- Portland (OR): $16.30/hr
For someone working full-time, these increases represent hundreds of extra dollars per year.