The Social Security Administration (SSA) is considering a major overhaul of its disability eligibility rules, a move that could affect hundreds of thousands of Americans.
According to a September 2025 report by the Urban Institute, proposed changes to job classification criteria and age-based rules could block up to 750,000 disabled Americans from accessing Social Security Disability Insurance (SSDI). Experts warn this would represent the biggest change in SSDI’s history and could deepen financial hardships for older and vulnerable workers.
What Are the Proposed Changes?
The SSA’s planned reforms focus on how job skills and age affect disability eligibility. Currently, the system acknowledges that adapting to new work becomes harder with age, giving older applicants a higher chance of qualifying.
If the new rules are adopted:
- Job descriptions used to assess eligibility would be tightened.
- Age-related considerations that favor older applicants could be reduced or eliminated.
- The overall SSDI applicant pool would shrink by up to 20%, and by as much as 30% among older workers.
These changes are expected to be finalized by the end of 2025, raising urgent concerns among policy experts and advocacy groups.
Potential Impact of the Rule Changes
The Urban Institute estimates that if SSDI eligibility is reduced by 10% over the next decade:
- About 500,000 people would permanently lose benefits.
- Another 250,000 would face gaps in eligibility.
- Total unpaid benefits could reach $82 billion.
This means fewer resources for families relying on SSDI to cover essentials like housing, medical costs, and food.
Estimated Impact of SSA Disability Eligibility Changes
| Category | Impact |
|---|---|
| Potential reduction in SSDI eligibility | Up to 20% overall |
| Older adults affected | Up to 30% |
| People losing eligibility (10-year span) | 500,000 permanent, 250,000 temporary |
| Benefits not released | £82 billion ($82 billion equivalent) |
| Widows and children losing support | 80,000 |
Why Is Age a Critical Factor?
Under current rules, age plays a crucial role in determining SSDI eligibility. The SSA recognizes that workers in their 50s and 60s may find it harder to adapt to new roles, especially when living with medical conditions.
If this age consideration is removed:
- Many older applicants could be denied SSDI.
- They may be forced to draw down retirement savings early.
- Many would then claim Social Security at 62, locking in a permanently reduced benefit instead of waiting until full retirement age.
This could accelerate financial instability for those already struggling with health conditions.
Who Could Be Most Affected?
The biggest impact would likely fall on:
- Older workers (50–64 years) with disabilities.
- Widows and children, with an estimated 80,000 losing benefits.
- Low-income families, who may fall into poverty without SSDI support.
Advocates warn that the changes could increase hardship, poverty, and even mortality among vulnerable groups.
Why Is SSA Making This Move?
The SSA’s goal is to modernize disability eligibility to reflect today’s labor market. Officials argue that outdated job lists and lenient age-based rules may allow individuals to qualify even when some work options exist.
However, critics argue that SSDI is already a strict and difficult program to access, and further tightening would unfairly penalize those who truly cannot work.
Key Dates to Watch
- September 2025: Urban Institute publishes impact report.
- End of 2025: SSA expected to announce final rule changes.
- 2026 onward: New applicants could face the stricter criteria.
The SSA’s proposed disability eligibility changes could deny benefits to as many as 750,000 Americans, stripping away up to $82 billion in support over the next decade.
While officials argue the reforms are necessary to modernize the system, advocates warn they could push vulnerable families deeper into financial hardship. With final decisions expected by the end of 2025, this debate is set to become one of the most significant Social Security reforms in decades.
FAQs
How many Americans could lose SSDI under the new rules?
Up to 750,000 Americans may lose access, including older workers, widows, and children.
When will these changes take effect?
The SSA is expected to finalize changes by late 2025, with implementation beginning in 2026.
Why are these changes controversial?
Critics say they could worsen poverty and financial insecurity, especially for older disabled workers with limited employment options.