Additional Coverage:
For many Americans, Social Security is a cornerstone of their retirement security. However, the program does more than provide retirement income-it also offers Supplemental Security Income (SSI) to millions of individuals with limited income and resources.
Currently, SSI recipients who receive non-cash support, such as a family member paying their rent or utility bills, may see their monthly payments reduced. A newly introduced bill aims to change this by excluding such non-cash assistance from the income calculations, potentially increasing the benefits for many SSI recipients.
What the SSI Savings and Efficiency Act of 2026 Proposes
On April 15, 2026, Democratic Representatives Sharice Davids and Mary Gay Scanlon introduced the SSI Savings and Efficiency Act of 2026. This legislation seeks to amend Title XVI of the Social Security Act to exclude in-kind support and maintenance (ISM)-non-cash assistance like housing costs-from being counted as income. Lawmakers argue this change could save money for both recipients and the government.
As of September 2026, the bill (H.R. 8298) remains under consideration by the House Ways and Means Committee and has not yet moved forward.
Understanding In-Kind Support and Maintenance (ISM)
ISM includes non-cash benefits such as a family member paying rent or utilities on behalf of an SSI recipient. Since September 2024, food assistance is no longer included in ISM calculations.
However, housing-related support continues to affect SSI payments. Examples include:
- Rent payments made on your behalf or free rent
- Utility bill payments
- Mortgage payments covered by someone else
For instance, if an SSI recipient moves in with their child who doesn’t charge rent, the value of that housing support could reduce their SSI benefits.
ISM rules also apply in certain medical situations, such as when Medicaid covers more than half the cost of care in a nursing home, hospital, or treatment facility.
Importantly, ISM is largely limited to housing-related support. Assistance with clothing, medical expenses, or phone bills generally does not reduce SSI benefits. Additionally, if you live only with a spouse and minor children without external support for housing costs, or if you share rent fairly with roommates, ISM rules do not apply.
Why This Bill Matters
SSI provides a vital income source, but the maximum federal benefit for an individual in 2026 is $994 per month. ISM rules can reduce benefits by up to one-third of the federal benefit rate plus $20-which translates to a potential reduction of $351 monthly. For many recipients, this represents a significant loss.
Excluding ISM from income calculations could therefore restore hundreds of dollars per month to SSI recipients, easing their financial burdens.
Advocates Support the Change
With over 6 million Americans aged 65 and older living below the poverty line, advocacy groups have welcomed the bill. Barbara Merrill, CEO of the American Network of Community Options and Resources, called the bill a step toward a fairer and more responsive SSI program, especially for people with intellectual and developmental disabilities.
The legislation has received endorsements from prominent organizations including Autism Speaks, the National Down Syndrome Congress, and Justice in Aging.
Looking Ahead
While the SSI Savings and Efficiency Act holds promise for improving benefits, it still faces legislative hurdles. Another related proposal, the SSI Restoration Act, aims to broadly update the program by increasing benefit amounts and adjusting outdated asset limits. Both bills currently remain under committee review.
These efforts reflect a broader commitment among lawmakers to modernize SSI and provide stronger support to vulnerable Americans. Whether these bills will pass remains uncertain, but they highlight important conversations about addressing poverty and economic security.
Practical Financial Tips for Everyone
Regardless of your financial situation, there are ways to strengthen your money management:
- Increase your income: Explore side jobs or other opportunities to supplement your earnings.
- Grow your savings: Benefit from compound interest by starting early and working with a financial professional to plan for retirement.
- Maximize savings: Take advantage of discounts and money-saving programs, especially available to seniors. Also, regularly review expenses like auto insurance to ensure you’re getting the best rates.
For those relying on SSI or preparing for retirement, staying informed and proactive about your finances is crucial to achieving greater stability and peace of mind.