Social Security Plans to Roll Back SSI Eligibility Expansion

Proposed change would reverse a 2024 rule that broadened access to Supplemental Security Income for low-income households, potentially reducing benefits for thousands.

The Social Security Administration (SSA) has announced preliminary plans to limit access to Supplemental Security Income (SSI), a move that could reduce monthly payments or disqualify eligibility for many low-income beneficiaries, including individuals with disabilities and older adults.

In a recent regulatory notice, the SSA signaled its intention to rescind a 2024 rule introduced under the Biden administration that had expanded the definition of a "public assistance household." This classification is key in determining whether an SSI recipient is subject to benefit reductions based on in-kind support—such as rent-free housing or food provided by family members.

Currently, beneficiaries can face up to a one-third reduction in their SSI benefits if they receive in-kind support and maintenance, unless they live in a household classified as receiving public assistance. The 2024 rule expanded this classification to include households where only one member, not all, receives means-tested aid such as Supplemental Nutrition Assistance Program (SNAP) benefits.

Under the proposed reversal, the broader eligibility introduced last year would be eliminated. SNAP participation alone would no longer qualify a household as receiving public assistance, effectively narrowing the number of families eligible for full SSI benefits.

Advocates and policy analysts have raised concerns about the impact of such a rollback. According to a report from the Center on Budget and Policy Priorities, the typical multi-person household receiving SNAP and SSI has an annual income of around $17,000—well below the federal poverty line. 

“The resulting SSI benefit cuts would be felt in low-income households with disabled family members or older relatives across the country,” wrote Kathleen Romig and Devin O’Connor of the Center.

When the expanded rule took effect in 2024, the SSA projected it would enable 109,000 additional individuals to qualify for SSI and increase payments for approximately 277,000 existing recipients by 2033. Repealing this change could reverse those gains.

Critics also warn that rolling back the rule may create disincentives for families to provide informal support to their disabled or elderly members, fearing it could jeopardize vital benefits. Additionally, it could increase the burden of documentation and reporting required for recipients to maintain eligibility.

The recent announcement marks only the start of a longer rulemaking process. Any change would require formal proposal of a new rule, followed by a public comment period. The SSA has not yet indicated when this might occur.

SSI currently serves about 7.5 million Americans, offering up to $967 per month for individuals and $1,450 for couples in federal benefits. Many recipients live on fixed, limited incomes and rely on SSI as a primary source of financial stability.

Residents of New Jersey and across the nation could be directly affected, particularly those in multigenerational or shared housing arrangements where benefits are closely tied to household composition and income thresholds. As the rulemaking process unfolds, local stakeholders are encouraged to monitor developments and participate in public comment opportunities when available.