The Social Security Administration recently announced a final rule that will significantly impact Supplemental Security Income (SSI) beneficiaries by preventing food assistance from reducing their monthly payments. SSI provides financial support to disabled individuals, the blind, or those age 65 and older with limited income or resources. This change is set to take effect on September 30 and will eliminate food as a factor in determining eligibility for benefits, specifically In-Kind Support and Maintenance (ISM).
Currently, food, shelter, or both can be considered as unearned income for SSI beneficiaries, potentially reducing their payments or affecting their overall eligibility for benefits. The maximum federal SSI amounts for 2024 are $943 for individuals, $1,415 for couples, and $472 for essential persons. To qualify for SSI, individuals must earn less than $1,971 per month and have resources totaling less than $2,000 for individuals or $3,000 for couples, including cash, bank accounts, bonds, property, or stocks.
The new rule will alleviate concerns among SSI beneficiaries about their groceries or meal assistance impacting their monthly benefits. Darcy Milburn, director of Social Security and health care policy at The Arc, commended this change as a significant step towards addressing a burdensome policy affecting individuals with disabilities. Furthermore, the Social Security Administration will no longer have to devote resources to tracking beneficiaries’ receipt of free food and subsequently adjusting their benefits.
According to the Social Security Administration, this rule change is the first of several updates planned for SSI beneficiaries and applicants. Commissioner Martin O’Malley highlighted the importance of simplifying policies to reduce public and agency burdens while promoting equity by removing payment access barriers. This change comes at a crucial time as inflation continues to drive up food and grocery costs for all Americans.
Thomas Foley, executive director at the National Disability Institute, emphasized the positive financial implications of the new rule, such as potentially reducing overpayments or underpayments to beneficiaries. Additionally, there is bipartisan support for a bill that would increase asset limits for SSI beneficiaries to $10,000 for individuals and $20,000 for married couples, up from $2,000 and $3,000 respectively. This change aims to address the financial challenges faced by individuals with disabilities and promote savings for a better future.
Bank CEOs, including JPMorgan Chase’s Jamie Dimon, have expressed support for updating SSI rules to benefit employees and individuals entitled to these benefits. Dimon highlighted the impact of asset limits on people’s ability to save and build a secure financial future, calling for necessary reforms to address these issues. Congressional action may be needed to implement larger changes to the SSI program and support individuals facing financial hardships.
The new rule issued by the Social Security Administration will have a significant impact on SSI beneficiaries by eliminating the consideration of food assistance in benefit calculations. This change represents a step towards addressing financial challenges for individuals with disabilities and promoting financial security and stability. Continued support and advocacy for reform are essential to ensure the well-being and financial independence of vulnerable populations in our society.