Social Security Benefits Could Change for Hundreds of Thousands With New Bill

A newly introduced bill could help retirees keep more of their Supplementary Security Income (SSI) senior benefits, even if they receive assistance from others. The legislation seeks to change a longstanding rule that reduces SSI benefits for seniors or people with disabilities if they receive help like caregiving or housing assistance from friends and family.

Here's what to know about the bill and how it might help you or a loved one on SSI.

Understanding SSI benefits

SSI is a federal program that provides benefits to people who have little to no income. To qualify, recipients must either have a disability or be age 65 or older. The program provides monthly cash distributions to help recipients cover needs like food, clothing, and shelter.

According to the Social Security Administration, SSI is usually for individuals who don't earn more than $2,073 per month from work. Couples and parents who apply for children have higher income limits. Additionally, other income sources, like disability benefits, unemployment, and pensions, are considered when determining if an individual qualifies and in calculating their benefit amount.

When the new legislation was introduced

Democratic Representatives Sharice Davids (KS) and Mary Gay Scanlon (PA) introduced the legislation on April 15. The SSI Savings and Efficiency Act of 2026 takes aim at an SSI policy that could potentially harm recipients by reducing their benefits.

"In Kansas, we take care of our neighbors — whether that's a parent helping their child get through a tough month or a family making sure a loved one has a place to stay," Davids explained. "But right now, federal rules can actually punish seniors and people with disabilities for receiving that kind of support."

What the bill seeks to change

Under current law, an individual's SSI benefits may be reduced if they receive non-cash help, like food or housing assistance, from a family member or friend. Additionally, if certain income from their household is counted toward the recipient's income, the recipient's benefits might be reduced.

Such reductions could strain a recipient's already low budget. They also make the SSI program more complex for beneficiaries to navigate and understand. Reducing benefits for non-cash help works against recipients who lean on informal support networks from friends and family to get by.

How the bill might change SSI benefits

The bill seeks to change the treatment of "in-kind support and maintenance" for beneficiaries. If the bill were to pass, it would eliminate the rule that decreases benefits if SSI beneficiaries receive in-kind support for basic needs, like food and housing.

When individuals and families are already living on a tight budget, in-kind support may make a significant difference in their overall financial security. Allowing SSI recipients to receive in-kind support might help stretch their budgets.

How the bill might encourage community connections

It's possible that allowing SSI recipients to receive in-kind support could also encourage community connections.

"Social Security provides a critical social safety net for seniors, people with disabilities, and families with children," explained Scanlon. "SSI's rules disfavoring in-kind support and maintenance punish people receiving basic assistance from friends and family. At a time when the cost of living has skyrocketed, it is critical that we address these harmful rules, which discourage people from staying connected to their communities."

When SSI recipients are allowed to accept assistance from the community, they may be more likely to maintain those valuable connections, such as accepting a free room in a house or accepting meals that a family member prepares and brings to them.

Who the bill could affect

Millions of people could potentially be affected by the bill. According to the Center on Budget and Policy Priorities data, the latest available, 7.4 million people received SSI benefits in January 2024. Approximately 1 million beneficiaries were children.

If passed, the bill could affect not only those SSI beneficiaries, but also their friends and family who want to support them but who are afraid of inadvertently causing a reduction in their benefits.

Bottom line

The bill has been endorsed by the American Network of Community Options and Resources, the National Down Syndrome Congress, Autism Speaks, Justice in Aging, and more. It has been introduced and may now head to committee, but its passage faces an uncertain path given broader scrutiny over Social Security's long-term funding. Since there's concern over Social Security funds running out as soon as 2035, according to the Cornell Chronicle, it's possible that Congress might choose to focus on addressing the broader Social Security program, rather than focusing on the shortcomings of SSI.

SSI may be a lifeline for individuals with very low incomes, helping them cover the basic expenses they need to survive. If passed, this bill might expand options for retirees, so in addition to SSI benefits, in-kind support could become a part of their retirement plan.

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