The fact of the matter is, inflation hasn't risen. That is, inflation based on the index CPI-W. Which is why many senior advocates suggest using the CPI-E index instead, which better accounts for seniors spending on prescription drugs and health care. Until that happens, seniors are stuck with no COLA. What the emergency $250 payment does is basically a small gesture to help out struggling seniors. While it does not fix the permanent problem, at least it is something.
Also, Congress voted against giving itself an automatic pay raise this year. There have been rumors flying around that they did vote themselves a raise, which is not true:
http://www.opencongress.org/articles/view/1846-Who-Voted-Against-Blocking-a-Pay-Raise-for-Congress- The legislation you are talking about last year was a one time payment like this one, not a permanent raise. Seniors were given $250 payment in the stimulus bill, however. I think its awful Feingold voted against it. Especially since I thought he was such a liberal guy:
http://www.opencongress.org/articles/view/1846-Who-Voted-Against-Blocking-a-Pay-Raise-for-Congress-