The Social Security Administration has issued a final rule that will prevent food assistance from reducing payments to certain beneficiaries. This change applies to Supplemental Security Income (SSI), which provides monthly checks to adults and children who are disabled, blind or age 65 and older and have little or no income or resources. Approximately 7.4 million Americans receive support from SSI, either exclusively or in combination with Social Security. The new rule, which goes into effect on Sept. 30, will ensure that food no longer counts toward calculations for eligibility for benefits, known as In-Kind Support and Maintenance (ISM).
Currently, support in the form of food, shelter, or both can count as unearned income for SSI beneficiaries, potentially reducing their payments or affecting their eligibility for benefits. The monthly maximum federal SSI amounts in 2024 are $943 for individuals, $1,415 for couples, and $472 for essential persons who live with an SSI beneficiary and provide care. To qualify for SSI, beneficiaries must generally earn less than $1,971 per month from work and have less than $2,000 in resources per individual, or $3,000 per couple. This includes money or other assets that can be turned into cash, such as bank accounts, bonds, property, and stocks.
The new rule means SSI beneficiaries will no longer have to worry that groceries or meals they receive from family or friends may reduce their monthly benefits. Darcy Milburn, director of Social Security and health care policy at The Arc, a nonprofit organization serving people with developmental and intellectual disabilities, stated that this change represents a significant step to address a complex and burdensome policy that has impacted people with disabilities who receive SSI for a long time. The new rule is the first of several updates that the Social Security Administration plans to put in place for SSI beneficiaries and applicants.
The Social Security Administration indicated that simplifying policies is a common-sense solution that reduces the burden on the public and agency staff while promoting equity by removing barriers to accessing payments. This change may provide relief to SSI beneficiaries as high inflation continues to prompt higher food and grocery bills for all Americans. Thomas Foley, executive director at the National Disability Institute, mentioned that people on SSI are one of the most food-insecure groups in the United States and that the new rule may result in fewer overpayments or underpayments of benefits, increasing financial security for recipients.
Congress has the opportunity to enact more significant changes to SSI through a bipartisan bill that would raise the asset limits for beneficiaries to $10,000 for individuals, up from $2,000, and to $20,000 for married couples, up from $3,000. Foley emphasized that disability affects everyone, making it a bipartisan issue, and that restricting asset limits to $2,000 significantly impacts people’s ability to save and build a better financial future. In December, bank CEOs, including JPMorgan Chase CEO Jamie Dimon, testified before the Senate in favor of updating SSI’s rules, noting that employees were reluctant to receive salary increases as it could impact their benefits, which they are entitled to. The bill aims to address these issues and improve financial stability for SSI beneficiaries.
