Retirement Social Security

Social Security Payments Set For Major Overhaul Under New ‘Calculation‘ Bill

A new way to calculate SSI payments could be a lifetime for those who count on that money.

By Maurie Backman , Edited by Laura Hohenstein

Updated May 5, 2026

Add Us On Google

For millions of Americans, Social Security is the key to a stress-free retirement. But the program doesn't only pay retirement benefits. It also provides Supplemental Security Income, or SSI, to millions of people with limited income and resources.

Under current SSI rules, recipients who receive non-cash assistance, such as a family member helping to cover rent or paying utilities, can see their monthly payments reduced. A new bill seeks to change that calculation and put more money in SSI recipients' pockets.

Here's what the new bill entails and why it could end up being a true game changer for people who rely on SSI.

Get a protection plan on all your appliances

Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

A home warranty from Choice Home Warranty could pick up the slack where insurance falls short.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

Get a free quote

What the SSI Savings and Efficiency Act of 2026 seeks to do

Introduced by Democratic Reps. Sharice Davids and Mary Gay Scanlon, the SSI Savings and Efficiency Act of 2026 aims to amend Title XVI of the Social Security Act to exclude in-kind support and maintenance (ISM) from being counted as income, thereby avoiding reduced SSI payments. Lawmakers say this "could potentially lead to savings for both recipients and the government."

Who really has the cheapest auto insurance in your area? Check your zip code here.

What counts (and doesn't count) toward ISM?

In-kind support and maintenance refers to non-cash benefits that a person receives. For example, if an SSI recipient has a parent who pays rent for them, that counts as ISM.

Effective September of 2024, food is no longer included in ISM calculations. However, other types of support can lead to reduced payments.

These include:

Rent payments on your behalf or rent given for free
Utility bills
Mortgage payments made on your behalf

As an example, let's say you receive SSI and move into your child's home. Your child doesn't charge you rent. Since a big expense of yours is being covered, your SSI may be reduced.

And it's not just support from loved ones that can lead to reduced SSI. SSI can also be reduced if you:

Are admitted to a nursing home or hospital for an entire month and Medicaid pays for more than 50% of the cost
Are a minor child in a hospital or nursing home for an entire month and private insurance and/or Medicaid pays for more than 50% of the cost
Are in a public or private medical treatment facility and Medicaid pays for more than 50% of the cost

The good news is that ISM is pretty much limited to housing-related expenses. If someone gives you clothing, helps pay medical expenses, or covers your phone bill, it generally doesn't count against you.

Also, in the context of housing, the following isn't considered ISM:

You live with only a spouse and minor children and no one outside your household pays your rent, mortgage, or utilities
You live with other people (such as a roommate) and pay your share of the rent

Why the new bill could be huge

SSI benefits are a lifeline for people who receive them. But the maximum federal SSI benefit in 2026 is only $994 per month for an individual.

Meanwhile, ISM can reduce SSI by as much as one-third of the SSI Federal Benefit Rate of $994 plus $20. This year, that equates to $331 plus $20, or $351.

For people who rely on SSI, that could amount to a huge loss of income. So excluding ISM could put a lot of money back into recipients' pockets.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $15 the first year with auto-renewal.

A long overdue fix

Given that an estimated 7 million American seniors today are living in poverty, it's not surprising that the SSI Savings and Efficiency Act has drawn support from a number of advocacy groups.

Barbara Merrill, Chief Executive Officer of the American Network of Community Options and Resources (ANCOR), said, "By removing SSI's in-kind support and maintenance rules, the SSI Savings & Efficiency Act would take us closer to an SSI program that is fairer, simpler, and more responsive to the daily realities facing people with intellectual and developmental disabilities."

The bill has also been endorsed by Autism Speaks, the National Down Syndrome Congress (NDSC), the National Organization of Social Security Claimants' Representatives, Access Ready Inc., and Justice in Aging.

Bottom line

People on SSI often struggle to make money and need those benefits to cover their basic needs. The SSI Savings and Efficiency Act, if passed, could help SSI recipients collect larger checks and avoid financial stress. At this stage, the bill has been referred to the House Committee on Ways and Means. That means it still faces some hurdles.

There's also another bill, the SSI Restoration Act, that's been introduced. That bill seeks to make broad updates to the program, such as increasing benefit levels and updating outdated asset limits.

So all told, it's clear that lawmakers are invested in modernizing SSI and making sure those in need of those benefits aren't sentenced to perpetual poverty. Whether these bills actually pass, though, is yet to be determined.

More from FinanceBuzz: