Donald Trump’s Proposed Social Security Rule Could Cut Benefits for Nearly 400,000 Americans

Many people think Social Security is only for people who have retired, but the program does more than provide retirement payments. It also helps some Americans who have very little income or savings through Supplemental Security Income, commonly known as SSI.

Congress created SSI in 1972, and the first payments were made in January 1974. The program was designed to provide financial help to older people with low incomes, as well as people who are blind or have disabilities.

As of August 2026, around 7.31 million people were receiving SSI payments, according to figures from the Social Security Administration.

However, a proposal from the Trump administration could change how SSI benefits are calculated for some people. If the proposal eventually becomes a final rule, hundreds of thousands of low-income Americans could be affected, and some could receive smaller monthly payments.

The proposal would reverse a change introduced during the Biden administration that gave additional protection to certain SSI recipients.

Under the proposed change, Supplemental Nutrition Assistance Program benefits, commonly known as SNAP or food benefits, would no longer be included when deciding whether a household qualifies as a public assistance household.

This is important because the current rules can protect some SSI recipients who live with relatives from having their benefits reduced.

In 2024, the Social Security Administration estimated that expanding the definition of a public assistance household to include SNAP would increase federal SSI payments by about $15 billion between the 2024 and 2033 financial years.

Changing that definition could therefore reduce the amount of money the government spends on SSI over time.

Under the Biden-era rules, a household could qualify as a public assistance household even if only one person in the home received certain qualifying benefits, including SNAP.

The Trump administration’s proposal would remove SNAP from the qualifying programs and return to stricter rules. This could particularly affect older or disabled SSI recipients who live with relatives.

For example, if an SSI recipient receives help from family members with housing or other basic needs, some of that support could potentially be treated as income under SSI rules. If that happens, the person’s monthly SSI payment could be reduced.

This could happen even when the family itself has a relatively low income and qualifies for food assistance.

The maximum federal SSI payment for an eligible individual is currently $994 per month. Estimates connected to the proposed changes suggest that some affected recipients could see their payments reduced by roughly one-third.

For someone receiving the maximum amount, that could mean their payment falling from $994 to around $663 a month. That is a reduction of approximately $331 every month.

For people already struggling financially, losing more than $300 each month could make a major difference. That money may be needed for rent, electricity and gas bills, transport, medication, groceries and other everyday expenses.

Reports suggest the proposed rule could result in around 277,000 current recipients losing SSI eligibility, while another 109,000 people could be prevented from qualifying in the future.

That means close to 400,000 Americans could potentially be affected if the proposal eventually takes effect.

The Social Security Administration has argued that the proposed changes are intended to make SSI rules more consistent and help protect the program over the long term.

However, people receiving SSI should understand that these changes have not taken effect.

As of October 2026, the proposal has not become a final rule. It has not even been formally published in the Federal Register as a proposed rule.

The Office of Information and Regulatory Affairs is still reviewing it. Because of this, the official public comment process has not yet started.

If the proposal is formally published, members of the public would normally have an opportunity to submit comments before officials decide whether to introduce a final rule.

For now, existing SSI rules remain in place. This includes the current rule allowing SNAP to be considered when determining whether certain households meet the public assistance household definition.

The debate over SSI is likely to continue. Some critics argue that overly generous benefit rules can discourage people from earning additional income. However, many people receiving SSI have serious limitations that can make working difficult or impossible.

In 2024, about 84% of SSI recipients qualified because they were disabled or blind.

For people who depend on SSI to cover basic living costs, losing a significant part of their monthly payment could create serious financial difficulties. It could also put more pressure on relatives who are already helping them with housing, food and other necessities.

Still, nothing has been decided yet. The proposed changes must go through further stages before they could become final.

Public opposition, comments from organisations, legal concerns or decisions by policymakers could also lead to the proposal being changed or withdrawn.

For now, SSI recipients will continue receiving benefits under the existing rules while the proposal remains under review.