New SSI Proposal Could Cut Benefits for Over 400,000 Americans

New SSI Proposal: A new Social Security proposal could make life harder for a lot of people who get Supplemental Security Income, or SSI. The idea would change who counts as living in a “public assistance household.” If that rule changes, more than 400,000 Americans could end up with smaller SSI checks or lose benefits fully. SSI is a program for older people, blind people, and disabled people who have very little income or savings, so even a small cut can hurt a lot.

The worry is that the proposal would undo a rule Social Security already updated. The final rule that took effect on September 30, 2024, expanded the “public assistance household” definition to include households getting SNAP food benefits and households where not every person in the home gets public assistance. Social Security said that change would help more people qualify for SSI, raise some payment amounts, and reduce reporting work for people in those households.

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What the proposal would change?

The whole issue is about how Social Security looks at help from other people in the home. Under the newer rule, SNAP can help a home count as a public assistance household. That matters because it can protect SSI recipients from having some household support counted against them. The proposed change would remove SNAP from that list. It would also bring back the older idea that every person in the house must get public assistance for the household to qualify.

If that happens, more people could be treated as getting “in-kind support and maintenance,” which is the value of help like food or shelter. When Social Security counts that help, SSI payments can go down. In some cases, a person can even lose SSI eligibility. Social Security’s own 2023 proposal explained that SNAP recipients are usually low income and that adding SNAP to the rule better reflects today’s real world of need.

Why advocates say the cut would be harsh?

The Center on Budget and Policy Priorities said the Trump administration was preparing to propose a rule that could cut SSI benefits for nearly 400,000 low-income older people and disabled adults and children. CBPP also said Social Security’s 2024 analysis estimated that about 277,000 SSI recipients would get higher benefits under the expanded rule, while about 109,000 more people would become eligible. Reversing that policy could affect a similar number of people in the opposite direction.

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Advocates say the change would punish people for living with family members or caregivers who are also poor. For many people, that shared home is what keeps them from homelessness or from needing an institution. CBPP also noted that the typical multi-person SNAP household with at least one SSI recipient has an annual income of about $17,000, which is far below the poverty line.

The administration is expected to say the change would tighten the rules and cut improper payments. Even so, the practical result could be very rough for families already living on the edge. A rule written in technical language can still mean less money for rent, food, medicine, and other basics. For a lot of disabled and elderly people, that is not a small trim. It is a wobble in the floor.