Major Changes Coming – Current SSI Benefits End in September

Millions of Supplemental Security Income (SSI) recipients will see a significant change as of September 30, 2024. The Social Security Administration (SSA) has announced updates to the SSI program that could alter eligibility requirements, impacting over 8 million low-income Americans who rely on these checks to cover essential expenses. Without these monthly payments, many would struggle to make ends meet, with some facing the harsh reality of poverty.

Purpose

SSI checks are designed to assist low-income seniors over 65, disabled individuals, and children in financial need. To qualify, applicants must meet strict income and resource limits. Currently, individuals can’t earn more than $1,971 monthly, and resources must not exceed $2,000 for individuals or $3,000 for couples. However, a new rule is set to shake things up.

In-Kind Support and Maintenance

The SSA has announced that it will no longer consider In-Kind Support and Maintenance (ISM) when determining SSI eligibility. ISM refers to unearned income in the form of food, shelter, or both, provided by someone living inside or outside the applicant’s home. This change could have a broad impact, as nearly 9% of SSI beneficiaries see reduced benefits due to ISM.

Impact

Data from the Modernized SSI Claims System (MSSICS) shows that ISM recipients are often those receiving outside support, typically in the form of shelter rather than food. These individuals often receive benefits near or below the ISM cap, particularly elderly SSI beneficiaries living independently. The existing ISM policies have been criticized for creating administrative burdens and discouraging families from supporting their low-income relatives, as it could lead to a dollar-for-dollar reduction in benefits.

Policy Challenges

The SSA’s current method of reducing benefits based on ISM received argues that those getting food or shelter assistance need less financial aid. However, this approach has faced criticism for its complexity and inequity. Applicants must answer detailed questions about household composition, expenses, and contributions from others, making the process cumbersome and often leading to reduced benefits.

Improvements

The new rule, effective September 30, 2024, is expected to enhance eligibility and financial support for about 7.4 million SSI recipients. By removing ISM from the calculation, many low-income individuals may see increased benefits or find it easier to qualify for assistance.

Payment

It’s important to note that SSI payment amounts vary depending on the recipient’s circumstances. Currently, the average monthly SSI payment is $943 for individuals and $1,415 for couples. However, these amounts could change in October with the anticipated Cost of Living Adjustment (COLA). While the current COLA is 3.2%, estimates suggest it might drop to around 2.63% for 2025.

In conclusion, the SSA’s decision to exclude ISM from SSI eligibility calculations is a significant shift that could benefit millions of Americans. This change aims to simplify the process, reduce inequities, and potentially increase the financial support available to those in need.

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