The proposed rule would change how the Social Security Administration (SSA) determines eligibility for Supplemental Security Income (SSI), potentially reducing or eliminating benefits for those living in households receiving food assistance (SNAP).
An estimated 400,000 SSI recipients nationwide could be affected, with up to 70,000 in Los Angeles County alone facing potential benefit reductions.
The rule change would treat living with family as receiving a form of income, even when no money is exchanged, leading to benefit deductions. Why this matters: This could create a contradiction where families poor enough to qualify for food assistance are still considered capable of financially supporting a disabled family member.
Safety-net programs like SSI have broader economic impacts, generating approximately $1.50 to $1.90 in economic activity for every $1 in benefits. Reducing these benefits could negatively impact local economies.
The proposed rule change centers on how the SSA defines a "public assistance household" for SSI eligibility. Historically, all members of a household had to receive public assistance for a disabled person to qualify. The Biden administration expanded this to include households where at least one member received SNAP benefits. The new proposal seeks to revert to the stricter standard and remove SNAP from the list of qualifying programs. This means that if a disabled person lives with family members who receive SNAP, their SSI benefits could be reduced based on the imputed value of the housing they receive. The maximum SSI benefit is approximately $994 per month, and recipients could lose up to one-third of that amount (around $300) due to 'in-kind support' rules. This change disproportionately affects regions with high housing costs, such as Los Angeles County, where multigenerational households are common. Los Angeles County has approximately 349,000 SSI recipients, with a large number relying on both Social Security and SSI to cover basic living expenses. A reduction in SSI could leave some with only a few hundred dollars per month for rent, food, and other essentials.
Q: Who will be most affected by this rule change?
Disabled adults and low-income seniors who live with family members and whose households receive SNAP benefits.
Q: How much could benefits be reduced?
Benefits could be reduced by up to one-third of the maximum SSI benefit, or about $300 per month.
Q: What is the next step in the process?
The proposed rule will be published in the Federal Register, opening a period for public comment.
The proposed rule change could significantly impact the financial stability of disabled adults and low-income seniors.
Families in areas with high housing costs may be particularly vulnerable.
Public comment can influence the outcome of the rule. Concerned individuals and groups can submit comments through Regulations.gov once the proposal is published.
What are your thoughts on the proposed rule change and its potential impact on vulnerable populations? Share this article with others who need to stay ahead of this trend!
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