Social Security Administration (SSA) has implemented a new rule that changes how Supplemental Security Income (SSI) eligibility is determined. SSI, which provides financial support for disabled or elderly Americans with limited income and resources, will now exclude food benefits like the Supplemental Nutrition Assistance Program (SNAP) from its eligibility criteria. This change aims to expand access to benefits by reducing the impact of “unearned income” on eligibility and payment amounts. The decision could lead to higher monthly benefits for many recipients, addressing a long-standing issue where food assistance unintentionally reduced SSI benefits.
How the New Social Security Rule Affects SSI Eligibility
The SSA’s update to eligibility criteria means that food benefits are no longer counted as unearned income. Previously, receiving SNAP or other food assistance could lower a recipient’s SSI benefit, reducing their financial support. By removing food benefits as a factor, more Americans may now qualify for SSI, and those who already receive benefits may see an increase. Financial educator Alex Beene notes this change could provide substantial support for beneficiaries, particularly for low-income Americans who rely on both SSI and food assistance for basic needs.
The impact of this rule change is timely, as the U.S. inflation rate recently hit 2.9%, and many Americans face higher costs of living. Average SSI payments, currently at $943 per month, could rise as more income categories are excluded from SSI eligibility calculations. This change represents a significant move toward a more inclusive Social Security benefits system, one that may now offer increased support to Americans relying on multiple assistance programs.
Anticipated Cost-of-Living Adjustments (COLA) for 2025
Each year, Social Security recipients receive a cost-of-living adjustment (COLA) based on inflation. For 2024, the SSA provided a 3.2% increase. However, for 2025, experts predict a more modest COLA in the range of 2.75% to 3.25%, reflecting slowing inflation rates. This COLA will determine adjustments across different Social Security programs, including retirement, survivor, disability, and SSI benefits.
Estimated COLA Impact on Social Security Checks for 2025
To illustrate how these adjustments will impact payments in 2025, the table below provides estimates based on two possible COLA scenarios: a 2.73% and a 3.2% increase.
| Benefit Program | Average Payment (2024) | Payment with 2.73% COLA | Payment with 3.2% COLA |
|---|---|---|---|
| Retirement Benefits | |||
| Average | $1,900 | $1,952 | $1,961 |
| Age 62 | $2,710 | $2,784 | $2,797 |
| Age 67 | $3,822 | $3,926 | $3,944 |
| Age 70 | $4,873 | $5,006 | $5,029 |
| Survivor Benefits | |||
| Average | $1,505 | $1,546 | $1,553 |
| Individual | $1,773 | $1,821 | $1,830 |
| 2 Children | $3,653 | $3,753 | $3,770 |
| Disability Benefits | |||
| Average | $1,537 | $1,579 | $1,586 |
| Blind Recipients | $2,590 | $2,661 | $2,673 |
| Maximum Payment | $3,822 | $3,926 | $3,944 |
| SSI Benefits | |||
| Average | $698 | $717 | $720 |
| Individual | $943 | $969 | $973 |
| Couples | $1,415 | $1,454 | $1,460 |
| Essential Person | $472 | $485 | $487 |
These estimates suggest that the SSA’s new rule, combined with COLA adjustments, could meaningfully increase monthly support for many Social Security recipients.
Implications of the New Rule and Lower COLA Expectations
- Expanded Access to Benefits
By removing food benefits from SSI eligibility requirements, the SSA has created a more inclusive pathway for qualifying low-income and elderly Americans. Many people who previously fell just above the eligibility threshold may now qualify for SSI, providing essential financial support. - Increased Benefits for Current SSI Recipients
For current recipients, the removal of food benefits as unearned income could mean higher monthly SSI payments. With inflation continuing to impact household budgets, this increase may offer much-needed financial relief. - Adjusting Expectations for COLA
While a lower-than-expected COLA may seem discouraging, even modest increases in Social Security payments can help retirees maintain their purchasing power in a low-inflation environment. However, those whose expenses have risen significantly due to medical costs, housing, or other factors may find these adjustments fall short.
With these changes to Social Security and SSI, retirees and low-income Americans can expect more support in 2025. As the SSA adapts its rules to better reflect real-world financial needs, beneficiaries may find it easier to meet their daily living expenses and plan for the future.
While COLA adjustments may be lower, the adjustments still provide essential increases in support for millions of Americans. As always, keeping up-to-date with Social Security announcements will help beneficiaries better manage their finances.
What is the new SSA rule regarding food benefits?
The SSA has decided that food benefits, such as SNAP, will no longer count as unearned income in determining SSI eligibility, allowing more Americans to qualify for benefits and receive potentially higher monthly payments.
How will the 2025 COLA impact my Social Security benefits?
The 2025 COLA is expected to be between 2.75% and 3.25%, increasing Social Security payments slightly. The exact percentage will be announced later in 2024.
Who qualifies for SSI benefits?
SSI benefits are available to disabled or elderly Americans with limited income and resources. With the new rule, food benefits will not affect eligibility.
