If you have ever thought that it’s hard to get by on SSI, we have some fantastic news for you today. Lawmakers have introduced what they’re calling the SSI Restoration Act, and this could make a huge difference for those of you who rely on this critical program because it could bring a lot of you over the poverty line.
Today we’re going to talk about what this act is, what it could do for you, and why you need to take action to help make this a reality.
This is a transcript of our video. You can watch the full video on our YouTube channel: Low Income Relief.
What Is SSI?
This is a total modernization of the SSI system that lawmakers are discussing. So, of course, the first thing we need to address is what SSI is in the first place.
SSI stands for Supplemental Security Income. This is a monthly cash benefit that mostly helps people who are age 65 and older, or adults or children with disabilities who have very low income and very few assets.
SSI is run by the Social Security Administration, but it is not funded by Social Security taxes. Instead, it’s funded by general federal taxes—basically money that’s been set aside to help those who need it the most.
This program was created back in 1972, and many of its rules have never been updated, even as the cost of living has absolutely skyrocketed. I know you’re familiar with that problem because I think we’re all well acquainted right now with how expensive everything seems to be getting.
When it comes to SSI, the maximum individual benefit is $994 a month right now. That’s less than $1,000 a month. Honestly, that means if you’re getting this, you’re at about 75% of the federal poverty level, which means you’re well below the federal poverty guideline.
We know that about 30% of all SSI households are living in what is called deep poverty, and a lot of that comes down to that maximum monthly benefit cap.
The Problems With The Current SSI System
But that’s not the only problem. There’s also an asset trap built into SSI.
Many of you have experienced this and learned about it the hard way, but the SSI rules say that you can’t have more than $2,000 in the bank or in assets or you could lose your benefits. That rule hasn’t changed since 1989.
There’s also a marriage penalty built in. If two people get married and both of them are getting SSI individually, as soon as they get married their check gets cut. They only receive one and a half times the individual rate, instead of the two times the individual rate they would have had if they hadn’t gotten married.
So a lot of people find themselves forced to choose between their relationship and their financial survival, which creates serious long-term problems.
And if you thought we were done, we’re not, because there are still more issues built into SSI.
Many people can get punished for getting help from their families. We’ve talked about this in a lot of our videos. It’s called in-kind support and maintenance (ISM).
Basically, if a family member pays for your housing or utilities, the Social Security Administration can cut your check by one-third. This affects almost 10% of people who receive SSI, and sometimes it can blindside you and put you in a crisis.
There are also serious delays in the disability decision process. Many people wait an average of eight months for an initial disability decision. In 2023 alone, about 30,000 people died before a decision was even made on their case.
As you can see, there are a lot of problems with SSI right now. Those are exactly the problems that the SSI Restoration Act aims to fix.
Raising The SSI Benefit Level
Now that we’ve talked about the bad news and the things you’re currently dealing with, let’s talk about what this bipartisan bill could do to fix those poverty traps.
First, lawmakers want to raise the benefit floor.
Instead of giving you $994 a month—which is about 75% of the federal poverty level—they want to raise the maximum benefit to 100% of the federal poverty level, so that no one is forced to live below that line.
The goal is to make sure that people receiving SSI are no longer living below the federal poverty guideline.
Increasing Asset Limits
The next change would increase the asset limits.
Assets include money in the bank, savings, and sometimes things like insurance policies and other resources. Right now, those limits are:
- $2,000 for an individual
- $3,000 for a couple
The SSI Restoration Act would raise those limits to:
- $10,000 for an individual
- $20,000 for a couple
That’s far more generous and would help many people keep their benefits while reducing the overpayment problems we’ve been seeing in the program.
Now, I know $10,000 can feel unachievable for many people, but raising the cap means fewer people will accidentally trip over it if they need to fix a car, cover a medical bill, or handle an emergency.
We’ve received messages from people trying to save up enough money to move into a different apartment, but they couldn’t save up the security deposit because if they did, they’d lose their SSI. It becomes a terrible catch-22. Raising these caps would solve a lot of that.
Ending The Marriage Penalty
Another major change would end the marriage penalty.
If a couple gets married, they would be able to receive two times the individual rate, instead of having their benefits reduced just because they chose to get married.
I’ve personally known people who have had to make incredibly tough decisions about this. Removing the marriage penalty would do a lot of good for many families.
Letting You Keep More Of Your Income
Lawmakers also want to help you keep more of your money.
Right now, the Social Security Administration uses something called disregards, which are amounts of outside income that they ignore when calculating your benefit.
For example, the current rule ignores the first $20 a month of outside income.
Under the SSI Restoration Act, they would ignore up to $158 per month, allowing more of that money to stay in your pocket.
They also want to change the earned income rules. Instead of disregarding only the first $65 you earn from work, you could earn up to $512 a month from work before any reductions would occur.
This is meant to encourage people to work without penalizing them for doing so.
Removing The Family Help Penalty
Another big change would eliminate the in-kind support and maintenance rule.
That means you could receive help from family or loved ones with housing or utilities without having your SSI reduced.
This would provide a lot more stability for families and could even reduce government administrative costs, because tracking and calculating those changes is a bureaucratic nightmare.
How The Bill Could Reduce Poverty
Research from the Roosevelt Institute looked at what would happen if the SSI Restoration Act passed.
Right now, the poverty rate among SSI recipients is about 29.3%. Researchers say that if the act passed, it could drop to 11.2%.
Deep poverty would be nearly eliminated, and about 2.2 million people would be lifted out of poverty.
The bill would also extend full SSI benefits to all U.S. territories, including:
- Puerto Rico
- Guam
- U.S. Virgin Islands
- American Samoa
It would also make it so that 401(k) retirement savings would no longer count toward the asset limit.
What Would It Cost?
A lot of people wonder about the cost of changes like this.
Estimates suggest the program would cost about $60 billion per year, which is comparable to the cost of a tax break for large corporations or high earners.
In other words, it’s something that policymakers could realistically choose to fund.
What Happens Next
Here’s the important caution: this is still just a proposed bill.
It does have bipartisan support, meaning lawmakers on both sides of the aisle are working on it. However, it still needs additional support to pass through Congress.
That’s why it’s so important to contact your representatives and tell them how SSI affects your life and what this bill would mean for you. When people speak up, it really can make a difference.
While you’re checking things out, don’t forget that you can also get discounts from Walmart and Amazon on their subscription programs that offer free shipping, free delivery, video streaming, and other benefits. You can find those links on the screen, in the pinned comment, and in the description below.
Ultimately, I’m excited about the SSI Restoration Act because SSI was meant to be a safety net, not a trap. I’m hopeful that these changes could help a lot of you.
But until it passes, you need to be very aware of what those ISM rules can do to your benefits. Make sure you check out our other video where we explain that in detail.
We’ll be back soon with more ways you can save money and get free stuff.
