Social Security could change eligibility rules for disability - blocking benefits for 750,000 disabled Americans

By Jessica Hall

'Further tightening of an already strict program would likely worsen outcomes,' new report says

The changes could affect the financial security of those with disabilities, especially older adults, the Urban Institute's report said.

The Social Security Administration could change the job and age criteria that helps determine disability eligibility - meaning that 750,000 disabled Americans could be unable to get such benefits.

The expected rule change from the Social Security Administration would cut eligibility for disability benefits, particularly among older workers, and reduce the size of the Social Security Disability Insurance (SSDI) program, according to a report by the Urban Institute, a think tank that researches economic and social policy issues.

It would mark the most significant changes to the disability program in its history, according to Jack Smalligan, senior policy fellow at the Urban Institute. SSA's expected rule change could reduce SSDI eligibility by as much as 20% overall, and as much as 30% among older adults, he said.

The changes were under consideration during the first Trump administration and could be decided by the end of this year, the Urban Institute report noted.

The Social Security Administration did not immediately respond to a request for comment.

To estimate the impact of the changes, the Urban Institute said that by reducing overall SSDI eligibility by just 10%, roughly 500,000 people would lose eligibility by the end of a 10-year span, including 80,000 widows and children. Another 250,000 beneficiaries would lose eligibility for some of that 10-year period. The changes would mean about $82 billion in benefits would not be released, the report found, and the impact could be worse if the changes are more severe.

"The estimate is not the worst-case scenario. The impact could be more substantial," Smalligan said.

Also read: Disabled student-loan borrowers are eligible for debt relief. They're not getting it.

The debate centers on how the Social Security Administration uses different job descriptions and requirements, as well as an individual's age, in making eligibility decisions, according to the report.

"Further tightening of an already strict program would likely worsen outcomes overall and increase poverty, hardship and mortality," the Urban Institute said in its report.

The issue of age is important because the Social Security Administration currently recognizes that the ability to adapt to new work decreases with age, the report noted.

"People who are denied in their 50s have a low rate of returning to work. Those who are denied disability would need to draw down their retirement savings, then apply for Social Security at the earliest age of 62," Smalligan said. As a result, they would get a lower monthly Social Security benefit than if they were able to wait until their full retirement age.

Smalligan said changing the criteria for disability benefits would affect new applicants. It's unclear how the changes would affect those already on disability.

Read next: Social Security is on track to be insolvent in less than 10 years - but its commissioner says there's 'plenty of time' to find a solution

-Jessica Hall

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09-20-25 1355ET