A major policy change could be on the horizon for millions of Americans who rely on Supplemental Security Income (SSI). A newly introduced bill aims to overhaul how benefits are calculated, potentially increasing payments for hundreds of thousands of low-income seniors and people with disabilities.
The proposal, known as the SSI Savings and Efficiency Act of 2026, was introduced by Sharice Davids and Mary Gay Scanlon. The goal is to modernize the system and eliminate rules that critics say unfairly reduce benefits for those who receive basic help from family or friends.
How Current SSI Rules Reduce Payments
Under existing rules set by the Social Security Administration, SSI benefits can be reduced if a recipient receives certain types of non-cash assistance. This policy is known as “in-kind support and maintenance,” or ISM.
ISM includes help with essential housing costs such as rent, mortgage payments, and utilities. When someone receives this type of support, the SSA counts it as income and may reduce their monthly SSI payment by up to one-third.
In 2026, the maximum federal SSI benefit is $994 per month for an individual. That means recipients receiving ISM could see their payment reduced by as much as $331. This reduction has long been criticized for penalizing people who rely on informal support networks to meet basic needs.
What the New Bill Would Change
The SSI Savings and Efficiency Act of 2026 seeks to eliminate these reductions entirely. If passed, individuals would receive their full SSI benefit regardless of whether they receive non-cash assistance from others.
Supporters of the bill argue that the current system discourages people from seeking help from friends and family. They also say it creates unnecessary administrative complexity, making the program harder to manage and less predictable for recipients.
The proposed changes would simplify eligibility rules and ensure that low-income individuals receive consistent support, especially during a time of rising living costs.
Understanding In-Kind Support and Maintenance (ISM)
In-kind support and maintenance refers specifically to non-cash help related to shelter. This includes payments or assistance provided by others for housing-related expenses.
Examples of ISM include mortgage payments, rent, property taxes, and utility costs such as electricity, gas, water, and garbage removal. These forms of assistance are currently treated as unearned income by the SSA, which directly impacts SSI benefit calculations.
However, not all types of support are counted. Items like food, clothing, transportation, medical expenses, and education-related costs are excluded from ISM. Notably, the SSA already removed food from ISM calculations in recent years, meaning help with groceries or meals no longer reduces benefits.
What counts as ISM?
- Mortgage payments
- Home insurance (only if it is required by the terms of a mortgage)
- Rent
- Real property taxes
- Heating fuel
- Gas
- Electricity
- Water
- Sewer
- Garbage removal
What doesn’t count as ISM?
- Food
- Clothing
- Household furnishings and furniture
- Phone and cell phone services
- Cable and internet services
- Vehicles, including insurance, gas, and maintenance
- Travel
- Entertainment
- Education, tutoring, tuition
- Medical expenses including equipment, medication, therapy, treatment
- Taxes
Why Advocates Say Reform Is Needed
Lawmakers backing the bill argue that the current ISM rules are outdated and harmful. According to statements from Representative Scanlon’s office, the policy effectively punishes individuals for accepting basic assistance.
Critics say this creates a difficult choice for recipients: accept help and lose benefits, or struggle independently to maintain their full payment. In a time of increasing living expenses, this trade-off can be especially challenging for vulnerable populations.
The proposed legislation aims to address these concerns by removing penalties tied to informal support, allowing people to remain connected to their communities without financial consequences.
Other SSI Reform Efforts Underway
The SSI Savings and Efficiency Act is not the only proposal aimed at reforming the program. Another measure, the Supplemental Security Income Restoration Act, has also been reintroduced with broader goals.
This bill seeks to raise income thresholds, eliminate the so-called marriage penalty, and expand SSI eligibility to U.S. territories. Together, these proposals reflect growing bipartisan interest in updating the SSI system to better meet current economic realities.
Who Qualifies for SSI Benefits
SSI is a federal program designed to provide financial support to individuals with limited income and resources. It serves adults and children who are disabled or blind, as well as people aged 65 and older.
Unlike Social Security Disability Insurance (SSDI), SSI eligibility is based on financial need rather than work history. This makes it especially important for individuals who may not have been able to work enough to qualify for other benefits.
In 2026, the maximum monthly SSI payment is $994 for individuals, reflecting recent cost-of-living adjustments. Some recipients may also qualify for both SSI and SSDI if their disability benefits are particularly low.
Disability in the United States: Key Statistics
A significant portion of the U.S. population lives with disabilities that may qualify them for programs like SSI. Approximately 13.9 percent of adults experience cognitive disabilities affecting concentration or decision-making, while 12.2 percent face mobility challenges such as difficulty walking or climbing stairs.
Other categories include independent living disabilities at 7.7 percent, hearing difficulties at 6.2 percent, vision impairments at 5.5 percent, and self-care challenges at 3.6 percent. These figures highlight the importance of accessible and fair support systems.
Key Summary Table
| Aspect | Details |
|---|---|
| Bill Name | SSI Savings and Efficiency Act of 2026 |
| Main Change | Ends benefit reductions due to ISM |
| Current Max Benefit (2026) | $994/month |
| Potential Reduction | Up to $331 |
| Affected Group | Low-income seniors and people with disabilities |
| ISM Includes | Rent, mortgage, utilities |
| ISM Excludes | Food, clothing, medical, transport |
| Status | Under committee review |
| Related Bill | SSI Restoration Act |
The SSI Savings and Efficiency Act of 2026 represents a significant potential shift in how benefits are calculated for some of the most vulnerable Americans. By removing penalties tied to in-kind support, the bill aims to create a fairer and more straightforward system.
While the legislation still needs to pass through Congress, it reflects a broader push to modernize SSI and ensure that recipients are not penalized for relying on basic support from their communities. If approved, the changes could provide meaningful financial relief and stability for hundreds of thousands of people across the country.
