Lower Bucks Today

Congressmen Brian Fitzpatrick and Danny K. Davis have introduced a new bill, the SSI Savings Penalty Elimination Act, aiming to update the Supplemental Security Income (SSI) program, which has not seen substantial changes for over forty years. Currently, SSI's asset limits detrimentally impact low-income seniors and individuals with disabilities, as they are penalized for accumulating savings, thus threatening their access to necessary benefits.

Under the existing regulations, individuals 65 or older or those with disabilities can only receive SSI benefits if their assets are below $2,000. For married couples, this threshold is $3,000. These limits, unchanged since 1984, effectively discourage financial prudence and marriage among beneficiaries.

The proposed legislation seeks to amend these limits by raising the asset caps to $10,000 for individuals and $20,000 for married couples, with provisions to adjust these amounts in line with inflation. The bill, introduced with bipartisan support in both the House and the Senate, is seen as a necessary reform to align the program with current economic conditions.

“Raising the SSI asset limits is a smart, long-overdue reform that updates a critical program to reflect today’s economic realities. For over forty years, outdated restrictions have discouraged work and penalized those who try to save for their future. The SSI Savings Penalty Elimination Act modernizes these limits, ties them to inflation, and ensures that seniors and individuals with disabilities are not forced to choose between earning a paycheck and keeping the benefits they depend on. This bipartisan legislation promotes financial independence and strengthens the integrity of our safety net,” stated Rep. Fitzpatrick.

Rep. Davis commented on the bill, saying, “I am honored to join with my colleagues to champion the SSI Savings Penalty Elimination Act that would improve the lives of lower-income seniors and people with disabilities. This bipartisan, bicameral bill would reform one of the most regressive, anti-savings measures in federal law by updating the outdated asset limits of the Supplemental Security Income program for the first time in almost 40 years. The necessity of this legislation is reflected in its support by over 200 businesses, faith-based groups, and organizations from across the political spectrum.”

Senator Catherine Cortez Masto highlighted the inadequacy of current savings limits: “A $2,000 rainy-day fund doesn’t go as far as it did in 1989, but that’s all the savings that people who rely on SSI benefits are allowed. We shouldn’t punish people who are working hard, saving their money, and planning for the future. Congress must raise the SSI asset limit to help our seniors and Americans with disabilities.”

Dr. Bill Cassidy also voiced support, "Outdated rules are making disabled Americans pick between a better job and losing their safety net. That’s wrong. Instead, let’s encourage work, help people save, and lift them out of poverty."

Senator Ron Wyden addressed the broader impact of the current rules, “Every year, SSI’s outdated rules prevent Americans from being able to work, save, or marry the one they love. This bipartisan bill gives Americans who are trying to make ends meet the chance to live independently without fear of being forced to forfeit an economic lifeline. As the Ranking Member of the Finance Committee, I am committed to making sure SSI is no longer stuck in yesteryear so every American can live with dignity and respect.”

The legislation is backed by a wide array of organizations, including AARP, The Autism Society of America, Microsoft, The National Council on Aging, and JPMorganChase. Several representatives from these and other groups praised the bill as crucial to enhancing life opportunities for SSI beneficiaries and urged Congress to pass it without delay.

Rebecca Vallas from the National Academy of Social Insurance stated, "A core component of the nation’s Social Security system, SSI is nothing short of a lifeline for more than 7 million of the nation’s poorest seniors and disabled people, including more than one million disabled children... Senators Cortez Masto, Cassidy, and Wyden and Reps. Davis and Fitzpatrick are to be commended for their bipartisan leadership on the SSI Savings Penalty Elimination Act —important legislation that would bring long overdue reform to one of the most regressive anti-savings policies on the books today."

The push to pass the SSI Savings Penalty Elimination Act reflects a cross-party commitment to reform Social Security provisions for the more than 7 million Americans reliant on SSI.

Supporters can read the full bill summary to understand the proposed changes and their potential impacts.