SSI Savings and Efficiency Act of 2026
- Sponsor
- Rep. Davids, Sharice [D-KS-3]
- Committees
- Ways and Means Committee (primary)
- Last action
- Apr 15, 2026
Bottom line
The bill simplifies the SSI program by ensuring that non-cash support from family or friends does not reduce an individual's SSI benefits, potentially increasing federal spending on the program.
What it actually does
This bill amends the Social Security Act to exclude in-kind support and maintenance (ISM) from being counted as income for individuals receiving Supplemental Security Income (SSI). Currently, if an SSI recipient receives non-cash assistance like free rent or food, their SSI benefit can be reduced. This bill eliminates that reduction, simplifying the program and potentially increasing benefits for many recipients. It also makes conforming changes to related sections of the Social Security Act.
Proponents argue
Supporters argue that excluding in-kind support from income calculations will significantly simplify the SSI program, reducing administrative burdens for both recipients and the Social Security Administration. They contend that the current rules penalize individuals who receive essential non-cash assistance, discouraging family and community support. By removing these complex rules, the bill would allow more low-income individuals to receive their full entitled benefits, improving their financial stability and reducing poverty.
Opponents contend
Opponents might argue that this change could lead to increased federal expenditures on the SSI program, potentially contributing to the national deficit without a corresponding increase in revenue. They may also raise concerns about program integrity, suggesting that individuals receiving substantial in-kind support might receive full cash benefits, which could be seen as less equitable compared to those who must cover all their living expenses independently. Critics might also question the long-term fiscal sustainability of expanding benefit eligibility.
The bill is very short and clearly written, making it highly accessible for a reader to understand its core changes within a few minutes.
Section 2(a), amending Section 1612(a)(2) of the Social Security Act
Exclusion of In-Kind Support and Maintenance from Income
This provision is the core of the bill. It modifies the definition of 'income' for the Supplemental Security Income (SSI) program to explicitly exclude 'support or maintenance furnished in kind.' This means that non-cash assistance, such as free housing, food, or utilities provided by another person, will no longer be counted as income when determining an individual's SSI benefit amount. It also removes the specific rule that reduced benefits by one-third for recipients living in another's household and receiving support.
Supporters argue
Proponents argue that this change will simplify a notoriously complex and often confusing aspect of the SSI program, making it easier for vulnerable individuals to receive the support they need without penalty. They highlight that the current rules often lead to benefit reductions for individuals who are already struggling, and that removing the in-kind support rule will provide a much-needed increase in effective income for many.
Critics contend
Opponents might contend that this provision could lead to an increase in federal spending, as more individuals will qualify for higher SSI benefits. They may also argue that it could create an imbalance where individuals receiving substantial non-cash support from others receive the same cash benefits as those who must pay for all their living expenses, potentially raising questions of fairness and program cost-effectiveness.
Tradeoffs
The provision balances the goal of simplifying the SSI program and supporting vulnerable individuals with the potential for increased federal expenditures. It trades off a more precise (though complex) assessment of a recipient's total resources for a simpler, more generous, and administratively less burdensome approach.
Section 2(b), amending Section 1611(c) and 1621(c) of the Social Security Act
Conforming Amendments to Remove In-Kind Support Rules
This section makes necessary adjustments to other parts of the Social Security Act to align with the primary change. Specifically, it strikes paragraph (6) of Section 1611(c), which contained the 'one-third reduction rule' for individuals living in another person's household and receiving support. It also clarifies Section 1621(c) regarding alien sponsors, ensuring that only cash support from a sponsor is considered income, consistent with the general exclusion of in-kind support.
Section 3
Effective Date
This section specifies that the amendments made by the Act will take effect one year after the date of its enactment. This provides a transition period for the Social Security Administration to implement the necessary changes to its systems, policies, and procedures, and to inform recipients and the public about the new rules.