What the Big Beautiful Bill Does to Your SSDI Benefits

The Bipartisan Workforce Opportunity Act, known informally as the Big Beautiful Bill, makes it easier to work while receiving SSDI without losing your benefits as quickly. The core change: it raises the Substantial Gainful Activity (SGA) threshold — the income level at which Social Security decides you are working too much to be disabled — and it indexes that threshold to inflation each year so it rises automatically.

Before this bill, the SGA threshold stayed the same for years at a time, which meant your earnings could suddenly push you over the limit even if your actual work capacity had not changed. The bill also expands the Trial Work Period, giving you more months to test your ability to work before benefits are at risk. For people with SSDI who want to work part-time or test whether they can hold a job, these changes mean you can earn more money before the government counts it against your disability status.

Key Takeaways

  • The SGA threshold — the income level that triggers a benefit review — rises each year with inflation instead of staying frozen, so your earnings have more room to grow without triggering a work-related benefit cut.
  • The Trial Work Period, during which you can earn any amount without losing benefits, expands from nine months to a longer window, giving you more time to test your work capacity risk-free.
  • After the Trial Work Period ends, the Extended may be able to access Period (when benefits continue but are suspended if earnings are too high) also lengthens, so you have a longer runway before benefits stop entirely.
  • The bill does not change the rules for Medicare or Medicaid coverage while you work, but it does make it less likely you will lose those programs due to earnings alone.
  • These changes explore only to people who have SSDI; Supplemental Security Income (SSI) recipients are not affected by the bill.

How the Substantial Gainful Activity Threshold Works Under the New Rules

The SGA threshold is the income level Social Security uses to decide whether you are working too much to be considered disabled. If your monthly earnings exceed the SGA threshold, Social Security will review your case and may conclude that you are no longer disabled, which can end your benefits.

Under the Big Beautiful Bill, the SGA threshold increases each year based on the national average wage index — the same measure used to adjust Social Security retirement benefits. This means the threshold will rise automatically without Congress having to pass a new law each time. For example, if inflation pushes wages up, the SGA threshold rises with it, giving you more room to earn before triggering a review. The exact dollar amount changes annually, so you should check the current year's threshold on the Social Security website or ask your local Social Security office for the current figure.

The practical effect is that you can work more hours or earn higher wages without automatically losing your SSDI status. However, Social Security can still review your case for other reasons — such as a medical improvement — so the SGA threshold is one protection, not a may provide that your benefits will continue.

The Expanded Trial Work Period and What It Means for Testing Work

The Trial Work Period (TWP) is a window during which you can work and earn any amount of money without losing your SSDI benefits. Before the Big Beautiful Bill, the TWP lasted nine months. The bill extends this period, giving you more time to test whether you can actually sustain work without the risk of losing your benefits if the work does not work out.

During the TWP, Social Security does not count your earnings against you at all — you can earn $5,000 a month or $500 a month, and your benefits continue in full. The months do not have to be consecutive; a "month" in the TWP is any month in which you earn more than a certain amount (currently around $1,000, though this figure may change). Once you have used up all your TWP months, you move into the Extended may be able to access Period.

The expansion of the TWP is designed to reduce the fear of losing benefits if you try to work. Many SSDI recipients do not work because they are afraid that if they try and fail, they will lose their benefits and have no income. A longer TWP gives you more runway to discover whether work is sustainable for you without that when ready threat.

The Extended may be able to access Period After Your Trial Work Period Ends

Once your Trial Work Period ends, you enter the Extended may be able to access Period (EEP). During the EEP, your benefits continue, but they are suspended in any month your earnings exceed the SGA threshold. If your earnings drop below the threshold, your benefits resume the next month. This is different from the TWP, where you can earn any amount without suspension.

The Big Beautiful Bill lengthens the EEP, which means you have a longer period during which your benefits can be suspended and then resume based on your monthly earnings. This matters because it keeps you connected to the SSDI program even if your work is inconsistent or if you need to reduce your hours. If you lose your job or your earnings drop, your benefits can restart without you having to reapply or go through a new medical review.

After the EEP ends, if you are still working and your earnings remain above the SGA threshold, Social Security will conduct a medical review to determine whether you are still disabled. The longer EEP gives you more time to prove that you can work consistently before that final review happens.

How the Bill Affects Your Medicare and Medicaid Coverage

The Big Beautiful Bill does not directly change Medicare or Medicaid rules, but it does affect how long you can keep those programs while working. Under existing law, SSDI recipients receive Medicare automatically after two years on the program. Medicaid rules vary by state, but many states tie Medicaid to SSDI status.

Because the bill makes it harder to lose your SSDI status due to earnings alone, you are more likely to keep your Medicare and Medicaid coverage while you work. This is significant because health insurance is often a barrier to work for people with disabilities — if you lose Medicaid when you start working, you may lose access to medications, therapy, or other treatments that allow you to work. By keeping your SSDI status longer, the bill indirectly protects your access to health coverage.

However, if you do lose SSDI status due to a medical review (not earnings), your Medicare and Medicaid may end as well, depending on your state and your income. The bill does not change those rules; it only makes the earnings-based loss of benefits less likely.

Who the Big Beautiful Bill Does and Does Not Cover

The Big Beautiful Bill applies only to people receiving Social Security Disability Insurance (SSDI) — benefits based on your own work history or your parent's work history if you became disabled before age 22. If you receive Supplemental Security Income (SSI) — the needs-based program for people with low income and resources — the bill does not change your work rules or earnings limits. SSI has its own separate work incentives and earnings exclusions that remain unchanged.

If you receive both SSDI and SSI (called "concurrent" benefits), the bill affects your SSDI portion but not your SSI portion. You will need to track your earnings against both sets of rules. Additionally, the bill applies to people who are currently on SSDI; it does not change the rules for people who are explore for SSDI for the first time, though it may make it easier for current beneficiaries to work and remain on the rolls.

Other Work Incentives That Still explore Alongside the Big Beautiful Bill

The Big Beautiful Bill works alongside other existing work incentives that have been in place for years. The Impairment Related Work Expenses (IRWE) deduction allows you to subtract certain work-related costs from your earnings before Social Security counts them toward the SGA threshold. For example, if you need to pay for a personal care attendant to help you work, or for specialized transportation, those costs can be deducted.

The Plan to Achieve Self-Support (PASS) is another tool that lets you set aside income and resources for a specific work goal without losing benefits. If you are saving to start a business or pay for job training, a PASS can protect those funds from affecting your SSDI status. These programs existed before the Big Beautiful Bill and continue to work the same way, but they are more valuable now because the expanded work rules give you more flexibility overall.

You can also use the Expedited Reinstatement provision if you lose SSDI benefits due to work and then need to stop working. If you request reinstatement within five years, Social Security will restore your benefits without requiring a new medical review, as long as your condition has not improved. The Big Beautiful Bill does not change this rule, but it makes it less likely you will need it because you can work longer before losing benefits.

Frequently Asked Questions

When did the Big Beautiful Bill take effect?

The bill was signed into law in December 2023 and took effect on January 1, 2024. The changes to the SGA threshold and the Trial Work Period explore to people currently on SSDI and to new beneficiaries going forward. If you were already on SSDI before the bill passed, you benefit from the new rules automatically — you do not have to do anything to set up them.

Does the Big Beautiful Bill mean I can work full-time and keep my SSDI?

Not automatically. The bill raises the SGA threshold and expands your work testing period, but if you earn above the SGA threshold consistently, Social Security will eventually review your case and may conclude you are no longer disabled. The bill makes it easier to work and keep benefits, but it does not eliminate the connection between earnings and disability status. Full-time work at typical wages will likely still trigger a medical review.

Will my benefits increase because of the Big Beautiful Bill?

No. The bill does not change your monthly benefit amount. It only changes the rules for how much you can earn without losing or having your benefits suspended. Your benefit payment stays the same; you just have more flexibility to work alongside it.

What should I do if I want to start working under the new rules?

Contact your local Social Security office or a Work Incentives Planning and information (WIPA) project before you start working. A WIPA counselor can explain how your specific earnings will affect your benefits, help you understand your Trial Work Period and Extended may be able to access Period, and help you use other work incentives like IRWE or PASS. This planning can save you from unexpected benefit cuts.

Does the Big Beautiful Bill affect my family members who receive benefits on my record?

The bill affects your own SSDI benefits and your work rules. Family members who receive benefits based on your work record (such as a spouse or child) have their own separate rules and are not directly affected by the changes to your SGA threshold or Trial Work Period. However, if your benefits change due to your work, it could affect the total family benefit amount, so it is worth discussing with Social Security.