Starting in October 2024, the Social Security Administration (SSA) will implement significant changes to the Supplemental Security Income (SSI) program, impacting millions of low-income Americans who rely on these benefits. SSI provides financial support to those over 65, as well as adults and children with disabilities or blindness.
These upcoming adjustments aim to make SSI more accessible, expand eligibility, and provide better financial stability for beneficiaries. If you or someone you know depends on SSI, these changes are crucial to understand.
Increased Benefits
One of the major changes involves an adjustment in SSI benefit amounts. Currently, individual recipients receive an average of $943 per month, while couples can receive up to $1,415. The SSA has announced that a cost-of-living adjustment (COLA) will further increase these payments in 2025. Although the exact amount is yet to be determined, experts project a 2.5% COLA increase. This boost means that monthly payments will exceed the current $943, offering more financial security to recipients.
The SSA is also raising the monthly income threshold, making more individuals eligible for these essential benefits. By expanding eligibility criteria, more people will be able to receive support, easing their financial burden.
Updated Eligibility Criteria
The SSA has redefined the concept of a “public assistance household,” significantly changing eligibility criteria. Under the old rule, every member of a household had to receive public assistance for the household to qualify for SSI benefits. Starting September 30, 2024, however, only one member of the household needs to be an SSI recipient, and at least one other member must receive some form of public assistance, such as SNAP (Supplemental Nutrition Assistance Program) benefits. This update opens the door for thousands of households that previously didn’t qualify.
The new eligibility rules are expected to increase SSI payments for around 277,000 current beneficiaries and make an additional 109,000 people newly eligible for SSI. This expansion promotes greater fairness and accessibility for low-income Americans.
Changes to Resource Limits
In addition to adjusting income thresholds, the SSA is modifying SSI resource limits. This change allows beneficiaries to retain more assets without losing their SSI eligibility. Previously, strict resource limits often disqualified people who had modest savings or owned certain assets. By loosening these rules, the SSA is helping recipients maintain a greater level of financial stability.
Food Assistance
A significant change in SSI calculations is the treatment of in-kind support and maintenance (ISM), particularly regarding food assistance. Previously, any free food received from friends, family, or community programs was considered unearned income, which could reduce an individual’s SSI payment. This rule was often criticized for penalizing recipients who received informal support from loved ones.
Starting in September 2024, food assistance will no longer be factored into ISM calculations. This means SSI recipients can accept help with food without worrying about their payments being reduced. The new rule will make it easier for low-income individuals to receive the assistance they need without unnecessary penalties, improving both fairness and access to benefits.
Nationwide Expansion
Another significant update is the nationwide expansion of the SSI rental subsidy exception. Previously, this policy was only available in seven states. Under the new rule, if an SSI recipient pays rent that meets or exceeds the “Presumed Maximum Value,” their SSI payments will not be reduced based on the value of rental assistance received.
This change is crucial for many low-income individuals who rely on rental assistance to afford housing. By expanding this policy nationwide, the SSA is ensuring that more people can receive the full benefit of their SSI payments, providing greater stability for those struggling with housing costs.
Promoting Fairness
Social Security Commissioner Martin O’Malley emphasized that these changes are designed to promote fairness and remove hurdles to SSI access. By streamlining eligibility rules and incorporating additional programs like SNAP benefits, the SSA aims to create a more equitable system for all low-income families.
The adjustments will not only enhance payments for current beneficiaries but will also increase access for new applicants. By making SSI more accessible and increasing benefit amounts, these changes represent a significant step towards better support for low-income Americans.
FAQs
What is the new income threshold for SSI eligibility?
The SSA has updated the income threshold, allowing more individuals to qualify for SSI.
How will food assistance affect SSI benefits in 2024?
Starting in September 2024, food assistance will no longer reduce SSI payments.
What is the expected COLA increase for 2025?
The projected COLA increase for 2025 is around 2.5%.
How will the rental subsidy exception impact SSI payments?
The nationwide expansion of the rental subsidy exception will prevent SSI payments from being reduced due to rental assistance.
Who will benefit from the new SSI rules?
The updated rules will benefit both current recipients and new applicants, increasing payments and broadening eligibility.
