Millions of Americans receiving government benefits will see major changes this month. Some will help. Others will hurt.
Social Security payments are going up 2.8% in January 2026. That means about $56 more per month for retirees. The average monthly benefit rises from $2,015 to $2,071, according to the Social Security Administration.
But there’s a catch.
Medicare Part B premiums are jumping from $185 to $202.90 per month. That’s a $17.90 increase—nearly $18 eaten from the Social Security raise. It’s the first time Part B premiums have crossed $200.
“The premium increase will offset a significant portion of the cost-of-living adjustment,” warns the Centers for Medicare & Medicaid Services.
For people on disability, the math is similar. SSDI payments increase by $44 per month on average. But Medicare costs are rising faster.
SSI recipients get smaller raises. The maximum federal SSI payment goes from $967 to $994 for individuals. That’s just $27 more each month. Couples see a $41 increase.
Seniors do get one big win this year. Americans age 65 and older can now claim an extra $6,000 tax deduction under the One Big Beautiful Bill Act signed in July 2025. Married couples where both are 65-plus can claim $12,000 combined.
The deduction starts phasing out at $75,000 income for singles and $150,000 for couples.
SNAP benefits face major restrictions in 12 states. Idaho, Utah, Indiana, Iowa, Arkansas, Florida, Oklahoma, Texas, Hawaii, Missouri, North Dakota, South Carolina, Tennessee, and Virginia can now block purchases of sugary drinks, candy, and energy drinks with food stamps.
Work requirements also got stricter. Adults without young children must work or train 80 hours per month to keep SNAP benefits. The age limit jumped from 54 to 64 years old.
Veterans with VA disability get the same 2.8% raise. A veteran rated at 100% disability will see about $107 more per month. The increase started December 31, 2025.
The child tax credit stays at $2,200 per child. But new rules require both parent and child to have valid Social Security numbers. Parents with only ITIN numbers cannot claim the credit, even for U.S.-born children with Social Security numbers.
Medicaid eligibility will shrink later this year. Starting October 1, 2026, refugees, asylees, and humanitarian parolees lose coverage in most cases. Only citizens, green card holders, and a few specific groups stay eligible.
Disability beneficiaries who work get higher earning limits. The substantial gainful activity threshold rises to $1,690 per month for non-blind workers. That’s up from $1,620 in 2025.
“These changes reflect the ongoing tension between providing assistance and controlling costs,” said policy experts tracking federal benefits.
For most Americans on fixed incomes, the bottom line is clear. Benefit increases won’t keep up with rising healthcare costs in 2026. Medicare premiums are climbing nearly 10%—three times faster than Social Security.
Beneficiaries should review their Medicare plans during open enrollment and check if they qualify for the new senior tax deduction. Every dollar saved on taxes helps offset what’s lost to higher premiums.
