President Trump is quietly planning to cut important Social Security benefits

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Social Security benefits are a critical source of income for many people. Unfortunately, some of the individuals who are reliant on benefits may soon find themselves facing one of the biggest benefit cuts in history.

This change is flying somewhat under the radar, as there has been no big formal announcement or legislation introduced. Instead, it would come through a shift in regulations that makes qualifying for benefits more difficult.

Here’s what the Trump Administration is proposing, along with some details on how it could cause harm to potential Social Security benefit recipients. 

Will a cut to Social Security benefits occur? 

The Trump Administration has put forth a proposal to modify regulations in a way that could make Social Security disability benefits much more difficult to qualify for. 

Specifically, the proposal would, if finalized:

• Replace outdated data: This proposed change has bipartisan support. It would use the Bureau of Labor Statistics’ Occupational Requirements Survey (ORS) to replace the Dictionary of Occupational Titles. The Social Security Administration must make decisions about how to interpret occupational data, including determining how many jobs exist at different skill levels and requiring different levels of exertion, as these factors impact eligibility. Regulatory changes would both alter the data source and modify this process. 
• Change how certain factors influence disability determinations. Specifically, the SSA may change how the Administration factors in age, education, and past work experience when determining if someone is eligible for benefits.  

These changes could have a major impact and could, especially, make it much harder for older people to become eligible for benefits. Under earlier drafts of the proposal, the guidelines would no longer assume that age seriously impacts someone’s ability to adapt to simple entry-level work, and Social Security Disability benefits applicants would now need to be 55, instead of 50, before education and work experience are considered in determining benefits eligibility. 

How would these changes affect Social Security benefits applicants?

The changes would affect both people applying for Social Security Disability Insurance (SSDI) benefits and for Supplemental Security Income (SSI) benefits. According to the Urban Institute, the modified rules could reduce eligibility for new benefits applicants under the SSDI program by around 20% overall and by 30% among older workers. The impact on SSI applications isn’t known. 

Even just a 10% reduction in SSDI eligibility would reportedly lead to an estimated 500,000 people losing benefits access over 10 years, and another 250,000 could lose benefits for at least part of that time. Medicare and Medicaid eligibility would also be affected as a result of this change. 

Older workers who are denied SSDI would also likely be prompted to claim Social Security retirement benefits early, which could lead to a 30% reduction in their lifetime retirement income. 

These are major changes that anyone who may apply for SSDI or SSI needs to be aware of. It is not yet clear if the rule change will happen since similar changes were proposed but not implemented during the President’s first term. Still, it is a very real possibility, and those who may need to rely on these programs should be aware of these potential changes, especially since it is already very difficult to qualify for disability benefits. 

For those worried about covering costs in case of disability benefits changes or other adjustments to Social Security, it can also be worth talking with a financial advisor about options like private disability insurance or about ways to fill gaps in a budget when benefits don’t come through as expected. 

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