Proposed Social Security Change Could Cut Benefits for Hundreds of Thousands of People- Are You One of Them?
People who rely on Social Security benefits to survive are already facing significant challenges. Not only is the average payout too low for most people to survive on, but the fund that keeps the money flowing is predicted to run out within the next decade.
Now, Social Security recipients may be facing a new struggle, as a proposed rule change could kick almost 400,000 recipients out of the program. The rule change has been submitted by the Social Security Administration (SSA) and is currently under review. Keep reading to find out what this means for you and whether you or your loved ones will be caught up in the funding cuts if the proposal gets passed.
Social Security Rule Change Would Hurt the Most Vulnerable
The SSA's proposal would impose a limit on which types of benefits can be counted toward public income maintenance (PIM) payments, which is part of the qualification used to determine who is eligible for Social Security Income (SSI).
According to the Office of Information and Regulatory Affairs, Office of Management and Budget statement, the proposal includes rescinding the Supplemental Nutrition Assistance Program (SNAP) from the list of qualifying PIMs.
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"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 says. This change would dramatically impact recipients who live with family or friends, especially those who are receiving benefits as part of a disability or diagnosis.
Why Does the SSA Want to Cut Benefits
It sounds like the rapidly diminishing Social Security funds are behind the change. That's because NJ.com says the administration could drastically reduce the amount of money it pays recipients under this rule change, effectively helping fund the SSA just a little bit longer.
As such, 277,000 SSI recipients and 109,000 people who would be eligible to receive SSI in 2033 would be booted from the program. Unfortunately, the publication estimates that these cuts would harm the most vulnerable among us the most, and likely impact people who have to live with friends or family because they cannot afford to live on their own, or otherwise cannot take care of themselves, as it would take the income and assets of those whose homes they live in (and who are likely caregivers) and use it as part of their benefit determination.
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While the Trump administration defends this decision and says it will "promote program integrity," critics think that it will actually strip benefits from those who need the money the most, especially in cases where these recipients can't otherwise go out and get jobs or make a living wage so that they can afford to live on their own.
The proposal is still under review, and there doesn't appear to be any timeline on when a decision is expected to be made.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
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This story was originally published May 20, 2026 at 12:02 PM.