Retirement Social Security

Proposed Social Security Rule Change Could End Benefits For Nearly 400,000 Disabled People

A proposed rule change could reduce or eliminate SSI benefits for many.

By Paige Cerulli , Edited by Andrea Basse

Updated May 22, 2026

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If your retirement plan depends on Supplemental Security Income (SSI), then it's important to be aware of a rule change proposed by the Trump administration. If passed, the rule change could result in steep benefit cuts or even the loss of benefits for approximately 400,000 individuals with disabilities.

Here's what to know about the proposed rule change, the effect it might have, and the steps that come next.

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Understanding SSI

SSI is a federal program created in 1972. The program provides monthly cash assistance to disabled individuals or older adults who have little income or assets. According to the Center on Budget and Policy Priorities, 84% of SSI beneficiaries are eligible because of a severe disability, and as of January 2026, over 1 million beneficiaries were children. SSI serves around 7.4 million Americans.

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Who's at risk

The SSI program has strict requirements about the assets that beneficiaries may have. Individuals may have no more than $2,000 in assets, while couples may have no more than $3,000 in assets.

Most SSI recipients have no other source of income apart from the SSI benefits. The basic monthly SSI benefit in 2026 is $994 for an individual and $1,491 for a couple.

Since SSI beneficiaries have very minimal assets and often depend entirely on SSI benefits as their sole source of income, the proposed rule change would affect highly financially vulnerable individuals and households, particularly those living with individuals who receive SNAP assistance.

Pre-2024 SSI rules

Prior to 2024, the Social Security Administration (SSA) had a very narrow definition of a public assistance (PA) household, which is a factor used to determine SSI eligibility. To qualify as a PA household, every household member had to receive some type of public assistance. If one person didn't receive benefits, the household might be considered ineligible for SSI.

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The 2024 SSI changes

In 2024, a rule added programs like SNAP to the list of benefits that could qualify a household for PA and SSI. It also changed the rule, allowing a household to qualify as a PA household if even one member received a qualifying benefit, rather than requiring every member to receive qualifying benefits.

The broader definition of a PA household meant that approximately 100,000 additional individuals could receive SSI, while nearly 300,000 beneficiaries could receive increased monthly payments. The rule also relaxed how in-kind support and maintenance were counted, giving SSI recipients more flexibility in receiving support like food help from family members.

What the Trump administration's proposed rule change could do

The proposed rule change would rescind the expanded 2024 definition of a PA household, returning to the stricter pre-2024 definition and rules. If the rule change were to go into effect, then SNAP would not help a household to qualify as a PA household. Instead, the requirement that all household members receive some type of public assistance, excluding SNAP, would go back into effect, potentially causing families to lose their SSI benefits or to have those benefits cut.

The rule would also implement stricter in-kind support policies. For example, if an SSI beneficiary received a free room in a family's home, the cash value of that room could be calculated and might end up reducing that individual's monthly benefit.

The potential effects of the rule change

A ProPublica analysis of figures from the Social Security Administration projects that approximately 400,000 poor and disabled people could have their SSI benefits cut or reduced as a result of the proposed rule change.

Those affected could include younger adults with disabilities like Down syndrome and autism who live at home with low-income parents. Older people with health or financial problems who have moved in with their adult children could be affected. Individuals who have moved in with family or friends while relying on SSI because of a disability may also be impacted.

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How the rule change might result in less help

Since the rule change could implement a stricter approach to in-kind support, it also might discourage family and friends from helping out SSI recipients if they fear the help might reduce the individual's benefits.

SSI benefit amounts are low and difficult to live on, so many SSI recipients live with others and rely on in-kind support, such as meals. Without that support, SSI recipients might no longer be able to live and might have to seek out care in a facility like a nursing home.

Bottom line

The rule change is just a proposal at this time, and it hasn't yet been finalized. Before it could go into effect, the change would need to undergo a public notice and comment period, giving SSI recipients and their families the chance to submit comments about the rule's potential effect on them. The process of reviewing and responding to the comment period may take months.

If you live in an SSI household, it's important to be aware of what could be coming and to track the rulemaking process. For families whose retirement savings are stretched thin, the change could be devastating, so be prepared to submit a comment during the public comment period to share your story.

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