Washington, D.C. – Today, U.S. Senators Catherine Cortez Masto (D-Nev.) and Bill Cassidy (R-La.), alongside Senate Finance Committee Ranking Member Ron Wyden (D-Ore.), introduced the SSI Savings Penalty Elimination Act to reform the Supplemental Security Income (SSI) program, which has not been updated in 40 years. Currently, the program unfairly punishes lower-income seniors and people with disabilities for saving responsibly for emergencies or their futures. A companion to this bill will be introduced in the House of Representatives by Congressmen Danny K. Davis (D-Ill.) and Brian Fitzpatrick (R-Penn.).
Right now, individuals with a disability or those aged 65 and older are only eligible for Supplemental Security Income if they have under $2,000 in assets. SSI’s marriage penalty restricts married couples to a total of $3,000 in financial resources to remain eligible. The Senators’ bipartisan, bicameral legislation would update SSI’s asset limits for the first time since the 1980s to allow millions of Americans with disabilities to marry, work, earn, and save money without putting the benefits they rely on to live at risk.
“A $2,000 rainy-day fund doesn’t go as far as it did in 1989, but that’s all the savings that people who rely on SSI benefits are allowed,” said Senator Cortez Masto. “We shouldn’t punish people who are working hard, saving their money, and planning for the future. Congress must raise the SSI asset limit to help our seniors and Americans with disabilities.”
“Outdated rules are making disabled Americans pick between a better job and losing their safety net. That’s wrong,” said Dr. Cassidy. “Instead, let’s encourage work, help people save, and lift them out of poverty.”
“Every year, SSI’s outdated rules prevent Americans from being able to work, save, or marry the one they love,” said Senator Wyden. “This bipartisan bill gives Americans who are trying to make ends meet the chance to live independently without fear of being forced to forfeit an economic lifeline. As the Ranking Member of the Finance Committee, I am committed to making sure SSI is no longer stuck in yesteryear so every American can live with dignity and respect.”
“I am honored to join with my colleagues to champion the SSI Savings Penalty Elimination Act that would improve the lives of lower-income seniors and people with disabilities,” said Congressman Davis. “This bipartisan, bicameral bill would reform one of the most regressive, anti-savings measures in federal law by updating the outdated asset limits of the Supplemental Security Income program for the first time in almost 40 years. The necessity of this legislation is reflected in its support by over 200 businesses, faith-based groups, and organizations from across the political spectrum.”
“Raising the SSI asset limits is a smart, long-overdue reform that updates a critical program to reflect today’s economic realities,” said Congressman Fitzpatrick. “For over forty years, outdated restrictions have discouraged work and penalized those who try to save for their future. The SSI Savings Penalty Elimination Act modernizes these limits, ties them to inflation, and ensures that seniors and individuals with disabilities are not forced to choose between earning a paycheck and keeping the benefits they depend on. This bipartisan legislation promotes financial independence and strengthens the integrity of our safety net.”
A study by JPMorganChase suggests that current asset and income limits on federal benefits for people with disabilities make it harder for them to work a part-time job or save money for an emergency. The SSI Savings Penalty Elimination Act would raise the SSI asset limits to $10,000 for individuals and $20,000 for married couples, and index them to inflation moving forward. The last update to SSI asset limits was passed by Congress in 1984 and went into effect in 1989.
Additional cosponsors include Senators Susan Collins (R-Maine), Maggie Hassan (D-N.H.), James Lankford (R-Okla.), Patty Murray (D-Wash.), Lisa Murkowski (R-Alaska), Sheldon Whitehouse (D-R.I.), and Rick Scott (R-Fla.).
The SSI Savings Penalty Elimination Act has the support of more than 200 businesses, faith-based groups, and organizations dedicated to improving the lives of older adults and people with disabilities, including: the AARP, the Autism Society of America, the Aspen Institute Financial Security Program, the Jewish Federations of North America, Microsoft, the National Council on Aging, the National Council on Independent Living, the National Down Syndrome Congress, Justice in Aging, the Arc of the United States, Bipartisan Policy Center (BPC) Action, the National Association of Evangelicals, the United States Conference of Catholic Bishops, and the U.S. Chamber of Commerce.
Read the full bill here.
Senator Cortez Masto has continually worked to make sure that Social Security and other government benefits efficiently function for America’s seniors and individuals with disabilities. Last Congress, the Senator helped pass the Social Security Fairness Act, bipartisan legislation supported to restore full Social Security benefits to thousands of retired law enforcement officers, firefighters, teachers, and other public servants. Cortez Masto also supports the bipartisan Veterans’ Compensation Cost-of-Living Adjustment Act, which would increase the rates of compensation for veterans with service-connected disabilities and military survivors under the Department of Veterans Affairs to ensure benefits keep up with the rising cost of living.
“SSI’s $2,000 asset limit has been frozen in time since 1989. In today’s economy, that means SSI beneficiaries can’t save for necessary expenses like a security deposit or car repairs without the risk of losing their benefits. There’s also an outdated and unjust marriage penalty baked into the SSI asset limit that cuts the amount of money beneficiaries are allowed to save by 25% if they marry the person they love. We strongly endorse the bipartisan SSI Savings Penalty Elimination Act because it will give Americans with disabilities more freedom to build the futures they want and deserve,” said Darcy Milburn, Director of Social Security and Healthcare Policy, The Arc of the United States.
“Supplemental Security Income’s asset rules have been frozen since the 1980s and prevent disabled Americans from participating in everyday life, whether it be tying the knot to a long-term partner or putting a financial nest egg away. Raising the program’s resource limits will help eliminate work and marriage penalties and limit accidental overpayments. The Niskanen Center supports this pro-savings, pro-family legislative effort by Senators Cortez Masto, Cassidy, and their colleagues,” said Will Raderman, Employment Policy Analyst, Niskanen Center.
“JPMorganChase, like many companies, wants to attract and retain the very best qualified people of all abilities. We applaud the bipartisan reintroduction of the SSI Savings Penalty Elimination Act, whichwould make common sense updates to the outdated rules for SSI benefits to reflect current economic conditions and keep pace with inflation,” said Bryan Gill, Global Head of the Office of Disability Affairs, JPMorganChase.
“The U.S. Chamber of Commerce would like to thank Senators Cortez Masto and Cassidy and Representatives Davis and Fitzpatrick for their leadership in reintroducing the SSI Savings Penalty Elimination Act, which would help employers fill many open jobs with older, experienced American workers who wish to stay in the workforce by raising the current asset limits for Supplemental Security Income program eligibility,” said Chantel Sheaks, Vice President of Retirement Policy, U.S. Chamber of Commerce.
“SSI’s outdated asset limits have prevented older Americans and those with disabilities from being able to save even a small amount for an emergency or to have a modicum of economic security as they age, without the risk of losing vital benefits. Americans should not be prevented from saving a few dollars for unforeseen circumstances, and SSI beneficiaries are no exception. It is long-past time for Congress to update SSI’s asset limits, which have become overly restrictive and prevent the accumulation of even a small amount of personal savings. AARP therefore urges Congress to pass your SSI Savings Penalty Elimination Act as soon as possible,” said Bill Sweeney, Senior Vice President, AARP Government Affairs.
“Current policy imposes a difficult choice on Americans living with disabilities: spend their money now or lose access to essential support. This is nonsensical and denies some people the ability to save for future needs and opportunities. The SSI savings limit is long overdue for reform. A big thank you to the senators and representatives who are leading the way to a more humane policy,” said Galen Carey, Vice President of Government Relations, National Association of Evangelicals.
“The SSI Savings Penalty Elimination Act will update asset limits for Supplemental Security Income and remove outdated barriers that restrict economic opportunity and hinder workforce participation. We thank Senators Cortez Masto and Cassidy and Representatives Davis and Fitzpatrick, for championing this bipartisan legislation that will help broaden America’s workforce, bolster supply chains, and support disabled workers,” said Rylin Rodgers, Disability Policy Director, Microsoft.
“BPC Action commends this effort by Sens. Cortez Masto (D-NV) and Cassidy (R-LA) and Representatives Davis (D-IL) and Fitzpatrick (R-PA) and urges Congress to act on long-overdue bipartisan measures to empower seniors and Americans with disabilities enrolled in Supplemental Security Income to increase their household savings,” said Michele Stockwell, President, Bipartisan Policy Center Action.
“A core component of the nation’s Social Security system, SSI is nothing short of a lifeline for more than 7 million of the nation’s poorest seniors and disabled people, including more than one million disabled children. But because it’s been left to wither on the vine for decades, with key eligibility criteria never updated even for inflation, outdated savings limits now trap millions in poverty — even though SSI was established to offer a pathway out. Senators Cortez Masto, Cassidy, and Wyden and Reps. Davis and Fitzpatrick are to be commended for their bipartisan leadership on the SSI Savings Penalty Elimination Act — important legislation that would bring long overdue reform to one of the most regressive anti-savings policies on the books today. Even at a time of historic polarization, updating SSI’s asset limits is one issue Americans across the political spectrum can agree on — and the time is now to act,”said Rebecca Vallas, CEO, National Academy of Social Insurance.
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