Recent reports suggest that the Trump administration is considering a plan that would reduce Supplemental Security Income (SSI) payments for close to 400,000 low-income seniors as well as adults and children with severe disabilities.
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Understanding the two main disability benefits
To grasp who might be impacted by this proposal, it's important to distinguish SSI from Social Security benefits. Social Security provides retirement and disability payments to individuals who have worked and contributed to Social Security taxes long enough to earn work credits, which are crucial in determining benefit amounts. Social Security Disability Insurance (SSDI) is for those unable to work due to a disability, and after two years on SSDI, recipients become eligible for Medicare.
On the other hand, SSI is a program based on financial need, designed for people who are disabled, blind, or elderly and have limited resources. SSI is funded by general tax dollars and offers monthly payments to help recipients meet basic living expenses. Most people who receive SSI also qualify for Medicaid.
Who could be affected?
At present, nearly 400,000 SSI recipients who are blind, disabled, or over 65 reside with relatives or friends. Data shows that many of these households are also facing significant financial challenges themselves. They might be working low-wage jobs, running small family businesses, or otherwise struggling financially. If the administration proceeds with its plan, SSI recipients living with friends or family could see their monthly payments reduced by several hundred dollars or lose their SSI eligibility altogether.
An August analysis from the Center on Budget and Policy Priorities (CBPP) notes that the proposal would add more bureaucratic hurdles, making it harder for eligible individuals to access and maintain SSI benefits. This problem would be worsened by the Social Security Administration’s already understaffed and overworked personnel.
The reasoning behind the proposal
Currently, SSI payments can be reduced by as much as one-third if recipients receive "in-kind support and maintenance," such as free housing or meals. This means that a blind, elderly, or disabled person living with a friend or family member could have their benefits lowered or even lose them entirely.
Additionally, SSI benefits may be decreased based on the income of a spouse, or a parent if the recipient is under 18, under the assumption that these family members will help cover the recipient’s living costs.
Details of the proposed changes
The administration’s suggested revisions would bring the program back to regulations first set more than four decades ago. In 1980, Aid to Families with Dependent Children (AFDC) was the main program for low-income families, and the Social Security Administration identified "public assistance households" by checking AFDC participation. Over the years, AFDC was replaced by Temporary Assistance for Needy Families (TANF), but today, far fewer families receive TANF cash support compared to AFDC in the past, according to CBPP.
Currently, receiving Supplemental Nutrition Assistance Program (SNAP) benefits is the clearest sign that a household needs all its income for basic necessities and cannot support another person. Because of SNAP’s role in identifying financially struggling families, the Social Security Administration updated its rules last year so that SSI recipients living with SNAP beneficiaries would not have their SSI reduced.
CBPP warns that under the administration’s expected proposal, SNAP participation would no longer be enough to classify a household as a "public assistance household." This would result in benefit reductions for elderly and disabled SSI recipients living in those homes.
SSI beneficiaries are not individuals with the means to invest in real estate—they simply require a secure place to stay. Although these benefit cuts are still under consideration, it’s understandable why many SSI recipients are worried about the potential changes.
