H.R.2540 - SSI Savings Penalty Elimination Act (119th Congress)
Summary
H.R.2540, the SSI Savings Penalty Elimination Act, aims to amend Title XVI of the Social Security Act, updating the resource limits for Supplemental Security Income (SSI) eligibility. The bill proposes increasing the resource limit for individuals from $2,250 to $10,000 and for couples from $3,000 to $20,000 in 2025. These limits would then be adjusted for inflation in subsequent years.
The bill seeks to modernize the SSI program by raising asset limits that have not kept pace with inflation, potentially allowing more individuals and couples to qualify for benefits.
The bill is currently in the House of Representatives, referred to the Committee on Ways and Means.
Expected Effects
If enacted, H.R.2540 would increase the number of individuals eligible for SSI benefits by raising the allowable resource limits. This would provide a larger safety net for low-income individuals and couples, particularly the elderly and disabled.
The inflation adjustment mechanism would help maintain the real value of these resource limits over time.
The increased eligibility could also lead to higher government expenditures on SSI.
Potential Benefits
- Increased Eligibility: More low-income individuals and couples would qualify for SSI benefits.
- Financial Security: Provides a stronger safety net for vulnerable populations, helping them maintain a basic standard of living.
- Inflation Protection: The inflation adjustment ensures that the resource limits keep pace with the rising cost of living.
- Modernization: Updates outdated asset limits that have not been adjusted for inflation for many years.
- Economic Stimulus: Increased SSI benefits could lead to increased spending, providing a small boost to the economy.
Potential Disadvantages
- Increased Government Spending: Expanding SSI eligibility would likely increase government expenditures, potentially adding to the national debt.
- Potential for Abuse: Higher resource limits could create opportunities for individuals to shelter assets in order to qualify for benefits.
- Complexity: The inflation adjustment mechanism adds complexity to the SSI program.
- Work Disincentives: Increased benefits may reduce the incentive for some individuals to seek employment.
- Unintended Consequences: There could be unforeseen impacts on other government programs or on individual behavior.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's broad mandate to "promote the general Welfare," as stated in the Preamble. Congress has the power to legislate regarding Social Security under Article I, Section 8, which grants it the power to lay and collect taxes to provide for the general welfare of the United States.
However, some might argue that increasing government spending on SSI could conflict with principles of fiscal responsibility, potentially raising questions about the long-term sustainability of such programs.
There are no apparent conflicts with specific constitutional amendments or other provisions.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).