New Rule Could Result in Increased Payments for SSI Beneficiaries
Americans who rely on Supplemental Security Income (SSI) may soon see an increase in their monthly payments, thanks to a new rule from the Social Security Administration (SSA). The rule aims to prevent reductions in payments for individuals who receive rental assistance. SSI payments are provided to disabled or blind adults and children, as well as individuals aged 65 and older with limited income and resources. However, there is a maximum limit on the monthly payments, which is currently set at $943 per person for 2024. Factors such as housing situations can also affect the amount received.
Under the current system, SSI payments are reduced if the recipient lives in someone else’s house but does not contribute their fair share of housing costs. For example, if an individual rents a home with a market value of $800 but only pays $600, the $200 difference is considered a rental subsidy. This subsidy is then deducted from the monthly SSI payment. So, if someone qualifies for the full $943 but has a rental subsidy of $200, the SSA only pays $743.
However, the SSA’s new rule, published on April 11, will change this situation. SSI recipients who receive rental assistance, such as discounted rent, will be less likely to see their monthly payments reduced. This change may increase the benefit amount for some people and allow more individuals to qualify for critical SSI payments. The rule is already in effect in seven states and will be expanded to all SSI recipients nationwide starting September 30.
The proposed rule received support from various organizations when it was initially proposed. The National Women’s Law Center emphasized that many SSI beneficiaries live in shared accommodation or rely on private assistance to pay rent. These individuals would see their monthly payments reduced without the new rule. The Charlotte Center for Legal Advocacy pointed out that many SSI recipients cannot afford fair market rents on just the federal benefit rate, making the rule change essential.
This new rule aims to ensure uniformity in how rental assistance is handled by the SSA. Previously, SSI beneficiaries receiving federal housing assistance were eligible for full benefits, while those relying on private assistance had their benefits reduced. The rule change will help SSI recipients who allocate a significant portion of their income to housing costs keep their full SSI benefit and meet more of their basic needs.
In addition to the relaxation of rental subsidies, the SSA has also announced changes regarding food assistance deductions from SSI payments. Starting September 30, food assistance will no longer be deducted when calculating SSI. This change removes a barrier for SSI eligibility and reduces month-to-month variability in payment amounts.
The SSA has been making several changes to benefit programs to better support beneficiaries. Last month, they announced a new measure that reduces the amount Social Security beneficiaries must pay to the agency to repay overpayments. Instead of withholding 100 percent of monthly benefits until the overpaid amount is recovered, the agency will now collect only 10 percent (or $10, whichever is greater) starting from March 25.
These changes aim to improve program equality and reduce administrative burdens for both beneficiaries and agency employees. By increasing monthly payments, removing barriers, and streamlining processes, the SSA is working towards ensuring that individuals who rely on SSI and Social Security benefits receive the support they need.
