New SSI Food Rule: What Every Trustee, Family & Guardian Needs to Know

A landmark change to Social Security's In-Kind Support and Maintenance (ISM) rules took effect on September 30, 2024 — and its impact is still being felt by trustees, families, and benefits administrators across the country. This is not a minor technical update. For the millions of Americans who receive Supplemental Security Income (SSI) and whose trusts pay for food, this change represents a fundamental shift in how trust distributions can be used.

At Shared Horizons, we believe every beneficiary, family member, guardian, attorney, and state agency working with our trust community needs to understand what changed and what it means.

What Is In-Kind Support and Maintenance (ISM)?

ISM is the SSA term for food, shelter, or both that someone else provides to an SSI recipient. Under the old rules, if a trust paid for food or housing on behalf of a beneficiary, the SSA counted it as income — and could reduce the SSI payment by up to one-third of the Federal Benefit Rate (roughly $351/month in 2026).

This created a difficult dilemma for trustees: paying for food or rent was often the most direct way to improve a beneficiary's quality of life — but doing so could reduce their SSI by hundreds of dollars per month.

What Changed: The Food Rule

Effective September 30, 2024: The SSA no longer counts food as In-Kind Support and Maintenance. This means a trust — including a Pooled Special Needs Trust like those administered by Shared Horizons — can now pay for groceries, meal delivery services, restaurant meals, and nutritional supplements without reducing the beneficiary's SSI payment.

This is a major expansion of trustee flexibility. It means beneficiaries can live better — with more consistent access to healthy food — without the financial penalty that previously discouraged trustees from making food-related distributions.

What Did NOT Change: The Shelter Rule

Housing and shelter support can still reduce SSI depending on the living arrangement and how payments are made. Specifically:

• If a trust pays rent, mortgage, or utilities directly for a beneficiary who lives alone or with non-household members, this can still be counted as ISM and reduce SSI

• The maximum ISM reduction in 2026 is approximately $351/month

• Trustees should consult with a benefits specialist or attorney before making shelter-related payments

  
  

This does not mean avoiding shelter payments entirely — sometimes stable housing is worth a temporary SSI reduction. But trustees should make that calculation deliberately, not discover it on a benefit review notice.

What This Means Across the Shared Horizons Community

For trustees and Shared Horizons staff: You now have significantly more flexibility to use trust funds for food-related needs without penalty. Meal delivery services, groceries, and dietary supplements are all permissible.

For families and guardians: If your loved one's trust was previously avoiding food-related distributions to protect SSI, that restriction no longer applies. Work with your trustee to reassess the distribution plan.

For trial lawyers and settlement planners: When projecting lifetime care needs and trust distributions in a settlement context, food costs can now be funded through the trust without the former ISM penalty.

For Social Security and Medicaid staff: SSA's final rule eliminates food from ISM calculations. This is now federal policy — not a loophole — and benefits planners should update their guidance and training accordingly.

For state disability agencies and providers: Training direct support professionals and care coordinators about this rule change helps ensure beneficiaries and families are getting accurate information.

The Bottom Line for Our Community

At Shared Horizons, our job is to use trust funds in ways that genuinely improve the lives of our beneficiaries. The elimination of food from ISM calculations makes that job a little easier — and the outcomes for the people we serve meaningfully better. We are committed to staying current with every rule change that affects our beneficiaries, and to making sure every family, guardian, and attorney in our network has the information they need.

Have questions about how this change affects your beneficiary's trust? Call us at (202) 448-1460 or visit shared-horizons.org.

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Citations & Resources

1. SSA Final Rule — Elimination of Food from ISM, Effective September 30, 2024: ssa.gov

2. LegalClarity — New Rules for Special Needs Trusts (2026): legalclarity.org

3. Special Needs Trust Rule Changes 2026: specialneedstrustbystate.com

4. Michael Ryan Money — New Rules for SNTs, 2025: michaelryanmoney.com

5. 42 U.S.C. § 1396p(d)(4)(C) — Pooled Trust authority