Social Security Benefits Could Change for Hundreds of Thousands in New Bill
Social Security benefits for hundreds of thousands of low‑income seniors and those with disabilities could increase under newly introduced legislation.
The bill, introduced Wednesday by Democratic Representatives Sharice Davids of Kansas and Mary Gay Scanlon of Pennsylvania, looks to eliminate a long‑criticized rule that can reduce monthly payments for recipients who receive help from family or friends.
Why It Matters
Even small reductions in Supplemental Security Income (SSI) could strain Americans’ budgets, especially as housing, food and health care costs continue rising.
Under current rules, SSI benefits can be reduced when recipients receive basic non‑cash help, such as shared housing or meals, from family members, friends or caregivers.
What To Know
The law would change how the SSI program treats so‑called “in‑kind support and maintenance,” such as food or housing assistance. Under current rules, that support can result in reduced SSI benefits even when it comes from informal help rather than cash income.
“The in-kind support rules and the reduction in benefits due to family provided care create unnecessary stress for people who are already dealing with enough. If the intent of the system is to support citizens, then supporting those who need additional care should not be where we draw the line,” Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek.
“What I find interesting is how little pushback there is when companies receive subsidies or tax abatements. That is rarely questioned. But when support is directed toward individuals and families in need, suddenly it becomes a burden on the system. That disconnect is hard to ignore.”
If passed, benefits would no longer be reduced based on non‑cash help that SSI recipients receive to meet basic needs, such as meals or housing.
“Social Security provides a critical social safety net for seniors, people with disabilities, and families with children,” Scanlon said in a statement.
“SSI’s rules disfavoring in-kind support and maintenance punish people receiving basic assistance from friends and family. At a time when the cost of living has skyrocketed, it is critical that we update rules which penalize people who are getting by with help from their communities.”
SSI is a federal program that provides monthly payments to seniors and people with disabilities who have low incomes.
What Happens Next
If enacted, the bill would allow recipients to receive the full SSI benefit for which they qualify, regardless of whether they receive non‑cash help like shared housing or meals from others.
The bill now heads to committee consideration before it’s up for approval from both the House and Senate.
“This proposal would revise that rule, allowing for beneficiaries to receive assistance from those sources without concern of it reducing their benefits. While this would certainly expand the amount beneficiaries receive, it comes at a time when Social Security’s budget and output are under increased scrutiny,” Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“With concerns over the depletion of its trust fund, Social Security is going to be at the center of many future conversations, and the alteration of rules that result in more funds being distributed may have a harder time finding passage.”