How will the SSDI rules change impact continuing disability reviews and work incentives?
Executive summary
Proposed and implemented 2025 SSDI rule shifts mostly raise income thresholds and benefits: the SGA for non‑blind disabled workers rose to $1,620 per month in 2025 and COLA increases (reported between 2.5–3.2% across outlets) boost average SSDI checks, allowing beneficiaries to earn more before losing eligibility [1] [2] [3]. Agencies and advocates also highlight higher taxable wage caps and trial work thresholds that change work‑incentive calculations for beneficiaries considering return to work [4] [5].
1. Bigger safety net numbers — what changed and why
SSA and legal/advocate summaries report 2025 increases that directly affect continuing disability reviews (CDRs) and work tests: the SGA for non‑blind workers is $1,620/month in 2025, COLA adjustments raise benefit amounts (variously reported as 2.5% or 3.2% depending on source), and the maximum earnings subject to Social Security tax increased under new tax limits—facts cited in SSA Red Book summaries and firm postings [1] [2] [4].
2. How higher SGA and COLA shift the CDR calculus
Raising SGA means more beneficiaries can earn modest wages without being viewed as engaging in Substantial Gainful Activity; that lowers the immediate trigger for benefit cessation during a CDR or post‑work activity assessment [1] [3]. Sources note that incremental SGA increases and COLA give claimants more breathing room between medical review cycles and income‑based disqualification [3] [6].
3. Trial Work Periods, Medicaid‑while‑working thresholds, and layered incentives
Legal guides and SSA materials indicate that trial work rules and Medicaid‑while‑working thresholds were adjusted for 2025: the Red Book shows higher state threshold amounts used to determine whether earnings replace SSI/Medicaid and therefore influence benefit interactions when someone tests employment [1]. Practitioners emphasize those thresholds as practical work incentives: beneficiaries can try work while retaining healthcare, which changes how beneficiaries and adjudicators treat work attempts during CDRs [1] [6].
4. Practical impacts for people under review or expecting a review
For people facing CDRs, higher SGA and related thresholds reduce the number of reviews that end in automatic termination solely for modest earnings. Firms and advocates predict fewer immediate suspensions for marginal earners and more cases where medical evidence — not just income — determines the outcome [3] [6]. However, available sources do not mention specific SSA operational changes to the frequency or automation of CDRs beyond noting efforts to reduce backlogs [3].
5. Financial incentives and tax policy that change the return‑to‑work math
Some reporting highlights that increases in the maximum taxable wage base (reported at $176,100 in one legal post) and COLA boosts change net‑income calculations and benefit taxation for higher earners, which can alter the incentive to return to substantial work or remain on benefits depending on household circumstances [4] [7]. Those tax‑and‑benefit interactions matter most to dual‑income households or those near taxable‑benefit thresholds [4] [7].
6. Conflicting figures and the need to check SSA primary sources
Public sources show inconsistent headline numbers: COLA is reported as 2.5% in some legal posts and 3.2% in others, while later SSA COLA pages list 2.8% for 2026 — illustrating shifting updates and reporting differences across outlets [2] [3] [8]. For precise planning, advocates in these sources urge checking SSA publications (Red Book, SSA notices) and counsel guidance rather than relying on secondary summaries [1] [3].
7. What advocates and law firms recommend beneficiaries do now
Disability law firms and advocates recommend: monitor your SGA and trial work figures; document medical evidence carefully for CDRs; use expanded Medicaid‑while‑working rules to test employment without immediate loss of coverage; and seek case‑specific advice because tax and COLA changes interact with household income in complex ways [6] [1] [4].
Limitations and final context: reporting in the provided sources mixes official SSA Red Book entries with law‑firm summaries; where SSA gives precise 2025 figures (SGA $1,620; Medicaid‑while‑working increases), cite those as primary [1]. For items not in these sources — for example, any specific change in CDR scheduling or automated review algorithms — available sources do not mention those details.