Social Security Change Could Cut Benefits for 400,000 Americans

A proposed rule change from the Social Security Administration (SSA) could reduce or eliminate benefits for hundreds of thousands of Americans, including many of the most financially vulnerable. Based on a new rule change submitted by the SSA that is under review, up to 400,000 Supplemental Security Income (SSI) recipients could have their payments reduced or cut off entirely. Why It Matters SSI provides financial support to low-income seniors , people with disabilities and other Americans with limited resources.

For many recipients, benefits already fall short of covering basic living costs, and even small reductions can have major financial consequences. The proposed change could disproportionately affect those who rely on family for housing and already struggle to meet basic needs. The Social Security Administration logo outside a field office in central Anaheim, California, on March 29, 2025.

What to Know The SSA is considering a rule that would change how household income and support are calculated and limit which benefits count toward Public Income Maintenance (PIM). The rule would also remove SNAP benefits (food stamps) from qualifying income categories. This matters because SNAP currently helps define whether someone qualifies for SSI protections.

Removing it could lead to reduced benefits and even loss of eligibility. “We further propose to adopt our former longstanding definition of a public assistance household, according to which every household member has to receive a PIM payment for the household to constitute a public assistance household,” the statement from the Office of Information and Regulatory Affairs, Office of Management and Budget proposal said. Who Could Be Affected Most at-risk groups: Disabled adults Low-income seniors People living with family or caregivers The proposal could remove about 277,000 current recipients from SSI and prevent another 109,000 people from qualifying in the future.