Social Security update: Hundreds of thousands would benefit under new proposal

A new bipartisan proposal in Congress is looking to modernize how families apply for Social Security survivor benefits.

Representatives Sharice Davids, a Kansas Democrat, and Gabe Evans, a Colorado Republican, introduced the Survivor Benefits Application Modernization Act on Wednesday.

The legislation would require the Social Security Administration (SSA) to create online tools allowing surviving spouses, children and dependent parents to schedule appointments and eventually file survivor benefit applications digitally.

“When a family loses a parent, spouse, or breadwinner, the last thing they should have to deal with is a maze of administrative red tape just to access the benefits their loved one earned through a lifetime of hard work,” Davids said in a statement. “This bipartisan bill would make it easier for families to get those benefits on their own, without having to navigate unnecessary hurdles during an already difficult time.”

If enacted, it could affect hundreds of thousands of Americans each year. According to SSA data, approximately 5.8 million people received survivor benefits as of April.

Newsweek reached out to the SSA for comment.

Why It Matters

Applying for survivor benefits is often one of the first financial challenges families face after the death of a spouse or parent.

While many Social Security benefits can be claimed online, survivor benefits generally still require applicants to interact directly with the SSA through scheduled appointments and physical paperwork.

That could bring along unnecessary delays at a time when many grieving families urgently need financial support.

What to Know

Under the legislation, the SSA would be required to launch an online self-scheduling portal for survivor benefit applicants within 180 days of the law’s enactment.

There would also be a new online system allowing eligible beneficiaries to complete and submit survivor benefit applications within one year.

In three years, Congress would analyze a report examining administrative cost savings and instances of fraud or identity theft deriving from the law.

“The bill is designed to help modernize the process of applying for survivor benefits. This will indeed help people who are well-versed in technology,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.

However, Thompson cautioned that some beneficiaries may be resistant to the new tech systems implemented under the law.

“Especially when it comes to retirees, most want less technology, not more, and often need some hand-holding throughout the process,” Thompson said. “Maybe for the next few generations this will be a great addition, but for the current generation, I think it could be a miss.”

What the Proposal Would Do

If approved, the new bill would:

• Require the Social Security Administration to create an online self-scheduling system for survivor benefit applicants within 180 days.

• Allow eligible surviving spouses, children and dependent parents to apply for survivor benefits through a secure online portal within a year.

• Reduce the reliance on paper-based applications and phone scheduling processes.

• Make it easier for families to access survivor benefits without unnecessary trips to Social Security field offices.

• Require the SSA to report to Congress on processing times, administrative cost savings, and any instances of fraud or identity theft associated with the new system after three years.

How Many Americans Receive Survivor Benefits?

SSA data released in April shows roughly 5.847 million people were receiving survivor benefits.

The total includes:

The average monthly survivor benefit across all categories was approximately $1,626.

“A household may lose one person, but it doesn’t suddenly lose half its expenses,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. “The mortgage or rent doesn’t get cut in half. Neither do property taxes, utilities or most of the basic costs of running a household.”

The new proposal affecting survivor benefits arrives at the same time that lawmakers are debating Social Security’s broader financial future.

According to Social Security trustees, the program’s trust fund reserves are projected to be depleted within the next decade unless Congress takes action.

However, even if the reserves are exhausted, the program would continue collecting payroll taxes, but beneficiaries could face automatic reductions if no reforms are enacted.

Social Security Trust Fund Timeline

What Happens Next

The bill has been introduced in the House of Representatives and will need to advance through the committee process before it can receive votes in the House and Senate.

If ultimately signed into law, the legislation would set deadlines for the SSA to create an online appointment scheduling system and a fully digital survivor benefits application process.

“By creating online appointment scheduling and a secure online application, the legislation would not increase the underlying benefit but could make it considerably faster and easier for survivors to access money they are already entitled to receive,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek.

Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here.

Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas

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