Modern Estate Planning Blog

Takeaways

• The Trump administration proposes reversing a 2024 rule that expanded Supplemental Security Income (SSI) eligibility and benefits, particularly for disabled individuals, by narrowing the definition of a “public assistance household.”
• If implemented, this change could lead to benefit cuts or loss of eligibility for hundreds of thousands of SSI recipients.
• The rule change is currently a proposal and will undergo a lengthy process of public comment, review, and possible legal challenges.

At Chubb Law Firm PC in Folsom, California, we understand how important Supplemental Security Income (SSI) benefits are for families with disabled loved ones. Recent news from the Trump administration has sparked uncertainty about the future of these benefits, particularly for those in the Sacramento region who depend on SSI for daily living expenses. Understanding the proposed changes and what they could mean for your household is the first step toward protecting your financial stability and long-term care needs.

The Trump administration has proposed rescinding a Biden-era rule that expanded eligibility for Supplemental Security Income (SSI).

Under the proposed rule, hundreds of thousands of SSI recipients, including many disabled adults and children, would have their benefits cut or lose eligibility entirely based on how the Social Security Administration (SSA) defines a “public assistance household.”

The existing rule remains in place for now, and a change is not imminent. However, disabled households should understand what’s at stake—and how to prepare—if the benefits rollback moves forward.

What a “Public Assistance Household” Is and Why It Matters

Around 7.5 million low-income Americans receive SSI benefits. The resource limit to qualify is just $2,000 for individuals and $3,000 for couples. And although the top benefit amount is a modest $967 per person and $1,450 per couple, SSI helps many low-income and disabled Americans pay for essentials like food and shelter, keeping them out of dire poverty.

One factor the SSA looks at when deciding SSI eligibility is whether someone lives in what’s called a “public assistance household.”

• Before 2024, SSA narrowly defined what it considered a public assistance (PA) household. To qualify, every member of the household had to be receiving some type of public assistance (i.e., welfare) through a benefits program, including programs that assist with food and housing.
  
  If even one person in the home did not receive such benefits, the household might not qualify for SSI. This meant that many families where just one person was on SNAP (food assistance) or other welfare programs did not get the SSI advantage of living in a recognized PA household.
  
• SSA finalized a rule in 2024 that added programs like SNAP to the list of qualifying benefits and lowered the bar so that if even one other household member received a qualifying benefit, the household could qualify as a PA household. The change also eased how certain kinds of “in-kind support and maintenance” (such as food help from family) were counted, making it easier for people to either qualify for SSI or receive higher benefits. Roughly 400,000 people saw gains from this change.
  
• Trump’s SSA has proposed rescinding that broader, Biden-era definition and returning to the older, narrower pre-2024 rules. If implemented, programs like SNAP would no longer help a household qualify for SSI. The requirement that all members of the household receive public assistance would come back. As a result, many families, particularly those where only one person relies on SSI, could lose benefits or see them cut.

Disabled Households Would Be Among Hardest Hit by Rule Change

When the 2024 rule change was finalized last year, SSA estimated that the broader definition of a “public assistance household” would lead to more than 100,000 additional individuals receiving SSI and increased monthly payments for nearly 300,000 beneficiaries.

According to the Center on Budget and Policy Priorities (CBPP), removing SNAP as a qualifying form of public assistance would reverse these gains.

“Under the anticipated Trump administration proposal, it’s expected that receiving food assistance from SNAP would no longer be enough to qualify a family as a ‘public assistance household,’” says CBPP.

“The resulting SSI benefit cuts would be felt in low-income households with disabled family members or older relatives across the country.”

CBPP describes an adult with Down Syndrome requiring daily support from her low-income parents who receive SNAP. Current rules allow her to receive the full monthly benefit amount ($967). But under the proposed Trump rule, because she lives with her parents, the cash value of her bedroom would subject her to the in-kind support and maintenance (ISM) penalty and reduce her SSI benefit by one-third to less than $700/month.

Restricting what qualifies as a PA household could result in families seeing benefits slashed or eliminated. The rule change could also discourage families from helping disabled loved ones out of fear of jeopardizing their benefits and force more disabled individuals into institutionalized care because they could no longer afford to live in their community.

“Burdensome and invasive” reporting requirements for beneficiaries could also increase. For example, a disabled SSI recipient would regularly have to report their living arrangement, family members’ income, and details of their shelter expenses and who pays them as their family’s circumstances change.

These added burdens would add complexity to already-complex ISM rules at a time when SSA has experienced staff cuts, which could cause underpayments as well as overpayments that require disruptive “clawbacks.”

The risk of a disabled person having to turn to institutional care is exacerbated by Medicaid cuts in the recently passed One Big Beautiful Bill that will put pressure on states to reduce home- and community-based services that allow many disabled people to live on their own, adds CBPP.

Rule Change Status and What to Expect

The good news for disabled people and their families is that nothing has changed—yet.

SSA’s proposal to roll back the rule is just that for now—a proposal. Before anything can change, it must go through a lengthy rulemaking process that includes:

• Public notice and comment: Advocates, families, and individuals with disabilities will have the chance to submit comments explaining how the change would affect them.
• Review and final decision: The SSA must review comments, respond to concerns, and then issue a final rule. This process can take months or longer.
• Possible legal challenges: Even if a rollback is finalized, lawsuits from disability rights groups could delay or block it.

In short, the Biden-era rule that expanded SSI benefit amounts and eligibility is still in effect and will be for the foreseeable future. Households that currently qualify under the updated definition of “public assistance household” will continue to receive their benefits, unchanged, until further notice. However, change could be on the horizon.

What Families Can Do to Prepare For a Change to SSI Rules

The rollback might not move from proposal to an actual rule. However, families of disabled adults and children should consider taking steps now to be ready if SSI eligibility rules tighten in the future.

• Stay informed: Follow updates from the SSA and disability advocacy organizations. Rule changes move slowly, but early awareness gives families more time to adapt.
• Strengthen your paper trail: Keep documentation of all household benefits (SSI, SNAP, Medicaid, housing assistance, etc.). Having records in order could help with eligibility reviews or appeals amid shifting definitions and rules.
• Explore backup safety nets: Disabled households may want to check eligibility for state or local programs that can supplement reduced SSI benefits. Medicaid waivers, housing vouchers, and food programs may prove especially critical.
• Talk to a special needs planning professional: The rules around SSI are highly technical. Even small changes can create significant ripple effects. Professional guidance can help families protect benefits and plan for changes that might affect them.

For now, families should continue to expect their usual SSI disability benefits. At the same time, it’s important to stay informed and understand how changes could affect your household if the rollback moves forward.

While these proposed SSI rule changes are still under review, it is wise to prepare now. Families across Folsom and the greater Sacramento area can turn to Chubb Law Firm PC for guidance on special needs planning, public benefits eligibility, and disability law. Our attorneys stay informed on evolving Social Security and Medicaid regulations so we can help you safeguard what matters most.

If you have questions about how these proposed SSI changes could affect your family, call (916) 241-9661 to schedule your Discovery Call.

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