Major Changes To Social Security Payment On The Way In New York

There are some major changes to Social Security on the horizon that New Yorkers need to know about. For people who rely on Social Security to survive, news about changes can be scary, especially with the way the current federal government is operating. There seems to be a major effort to eliminate or significantly reduce any type of benefits that help middle and low-income New Yorkers.

Federal Government Is Targeting SSI Benefits

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A proposed federal rule change will essentially punish people who are poor and/or disabled. If put in place, the rule would reduce or eliminate SSI benefits for hundreds of thousands of people, according to Newsweek. There is a push to remove SNAP as a qualifying form of public assistance. Under the proposed rule, per the Center on Budget and Policy Priorities, SSI beneficiaries living in households that get SNAP would see benefit cuts or elimination.

"It’s expected that receiving food assistance from SNAP would no longer be enough to qualify a family as a 'public assistance household'. The resulting SSI benefit cuts would be felt in low-income households with disabled family members or older relatives across the country."

You can read more about how the proposed rule will affect SSI recipients here.

New Yorkers Will Get Bigger Social Security Checks Next Year

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There is some good news for Social Security recipients in New York. Checks are expected to get bigger, meaning more money in you're pocket, in 2026. As the new year quickly approaches, Social Security beneficiaries will get a raise. The exact amount won't be available until October, but there is speculation based on previous increases. The annual cost-of-living adjustment, or COLA, which occurs under every administration, helps ensure that benefits keep pace with inflation. The current inflation rate, as of July 2025, is 2.7 percent and will likely increase due to tariffs. The Senior Citizens’ League predicts that the COLA will increase by that amount, 2.7 percent.

Massive Change Coming To Social Security Taxes For New Yorkers

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The One Big Beautiful Bill Act states that 88 percent of Social Security income recipients won't have to pay federal income taxes on their benefits.

That's the good news, but there is always a catch. The tax relief is temporary and only for a very short period. It will take effect in 2026 and will end after 2028. New Yorkers who are aged 65 or older and have an income of up to $75,000 for an individual or $150,000 for married couples can take a $6,000 tax deduction. In addition, the tax relief could spell problems for the Social Security program down the line.

According to The Motley Fool, the money that funds Social Security comes from three primary sources - payroll taxes (91%), taxes collected on benefits (4%), and interest earned on trust fund assets (5%). Because Social Security is already in a deficit, cutting taxes on benefits could cause future problems.

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