S.1234 - SSI Savings Penalty Elimination Act (119th Congress)
Summary
S.1234, 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 adjusting asset limits that have not kept pace with inflation, potentially allowing more individuals and couples to qualify for benefits.
The bill is sponsored by Ms. Cortez Masto and several other senators, and has been referred to the Committee on Finance.
Expected Effects
If enacted, this bill would increase the number of individuals and couples eligible for SSI benefits by raising the allowable resource limits. This would provide a larger safety net for low-income individuals and couples, especially the elderly and disabled.
The inflation adjustment mechanism would help ensure that the resource limits maintain their real value over time, preventing future erosion due to inflation.
This change could also lead to increased government spending on SSI benefits.
Potential Benefits
- Increased eligibility for SSI benefits, allowing more low-income individuals and couples to receive assistance.
- Provides a more realistic resource limit that reflects current economic conditions and the cost of living.
- The inflation adjustment ensures the resource limit keeps pace with rising costs, maintaining its value over time.
- Simplifies the SSI application process by reducing the likelihood of asset-related denials.
- Potentially reduces financial stress and improves the quality of life for vulnerable populations.
Potential Disadvantages
- Increased government spending on SSI benefits, potentially straining the federal budget.
- May incentivize some individuals to limit their savings to remain eligible for SSI, potentially discouraging self-sufficiency.
- The increased resource limits could create administrative challenges in processing a larger volume of applications.
- Potential for increased complexity in calculating inflation adjustments and communicating these changes to beneficiaries.
- Could lead to debates about the appropriate level of resource limits and the overall scope of the SSI program.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause, as it aims to provide support for vulnerable populations. Specifically, the preamble states the goal to "promote the general Welfare".
Congress has the power to legislate and appropriate funds for social welfare programs under Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States.
However, the specific levels of benefits and eligibility criteria are policy choices subject to debate and legislative discretion.
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).