SSI Rule Change: Food Assistance will No Longer Affect Beneficiaries' Payments

Changes in Social Security Administration Rules

The Social Security Administration has introduced a new rule that will alleviate the impact of food assistance on payments for certain beneficiaries. This rule applies to Supplemental Security Income (SSI), a program that offers monthly financial support to individuals and children who are disabled, visually impaired, or aged 65 and above, and have limited income and resources. Currently, approximately 7.4 million Americans rely on SSI as their sole support or in combination with Social Security.

Elimination of Food Assistance in Benefit Calculations

Effective from September 30, the new rule eliminates the consideration of food as part of the In-Kind Support and Maintenance (ISM) calculations for SSI eligibility. Previously, food, shelter, or both could be regarded as unearned income for SSI beneficiaries, potentially affecting their benefit eligibility or reducing their payments. This change aims to alleviate the concerns of SSI beneficiaries receiving groceries or meals from family and friends, as it will no longer impact their monthly benefits.

Financial Criteria for SSI Eligibility

To qualify for SSI, beneficiaries must typically earn less than $1,971 per month from work and possess less than $2,000 in individual resources or $3,000 in couple resources. These resources include money or assets that can be converted into cash, such as bank accounts, bonds, property, and stocks.

Impact and Future Changes

Darcy Milburn, director of Social Security and health care policy at The Arc, a nonprofit organization serving people with developmental and intellectual disabilities, expressed that the new rule represents a significant step in addressing a complex and burdensome policy that affects people with disabilities who receive SSI. The change is the first in a series of updates planned by the Social Security Administration for SSI beneficiaries and applicants, aiming to simplify policies, reduce administrative burden, and promote equity.

The new rule is anticipated to provide relief to SSI beneficiaries amidst high inflation, which has led to increased food and grocery costs for all Americans. Thomas Foley, executive director at the National Disability Institute, also highlighted the potential for fewer overpayments or underpayments of benefits, thereby enhancing financial security for beneficiaries.

Legislative Considerations

Congress is currently considering a bipartisan bill that seeks to raise the asset limits for SSI beneficiaries to $10,000 for individuals (up from $2,000) and $20,000 for married couples (up from $3,000). This proposed change aims to address the impact of asset limits on individuals' ability to save and improve their financial future. Notably, this bipartisan issue has garnered support from notable figures, including bank CEOs like JPMorgan Chase CEO Jamie Dimon, who emphasized the need for updating SSI's rules to ensure equitable support for individuals.