Social Security Measure – SSI Payments Increased by $132 for Over 40,000 Recipients

The Social Security Administration (SSA) has recently expanded the rental subsidy exception to all Supplemental Security Income (SSI) applicants and beneficiaries across the United States. This new measure, effective in all 50 states, aims to provide more Americans with financial relief by improving access to benefits they may not have previously qualified for. So, what does this change mean for SSI applicants? Let’s break it down.

Expansion Across States

Before this change, only seven states allowed SSI applicants to benefit from the rental subsidy exception. However, this exception is now available nationwide. The result? Approximately 41,000 additional Americans are expected to receive an increase in their SSI payments, worth around $132. This can be a significant boost, especially for those struggling to cover basic needs like rent and utilities.

To qualify for this additional benefit, SSI recipients must contribute at least a specific amount toward their rent. By doing so, they will no longer be subject to ISM (In-Kind Support and Maintenance) in the form of rental assistance, which typically lowers their benefits. Essentially, paying rent out of pocket ensures they receive the full payment without deductions for outside rental help.

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Other Advantages

While the main draw of the new rule is a potential increase in SSI payments, it offers other perks as well. This expansion could help more people qualify for SSI benefits in the first place. Previously, many applicants may have been disqualified due to income limits, preventing them from receiving these federal benefits. With the new rule in place, individuals who were previously ineligible should consider reapplying, as they may now meet the updated criteria.

The SSA’s removal of certain barriers makes it easier for more Americans to access essential financial support. If you were previously denied SSI benefits due to income restrictions, now might be the time to check if the rule change affects your eligibility.

SSI Payments

It will be fascinating to observe how these changes affect the average SSI payment amounts. The Social Security Administration releases monthly reports, such as the Monthly Statistical Snapshot. In comparing the report for August 2024 (released in September) to the one for October, we should see an upward trend in SSI payments, starting from the current average of $698.

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The expansion of the rental subsidy exception isn’t the only recent update to SSI rules. The SSA has also removed food from the ISM calculations, effective September 30, 2024. This rule change will affect more than 90,000 recipients, with an estimated average increase in benefits of $131.

Removal of ISM Calculations

For SSI recipients, the exclusion of food from ISM calculations can mean significant financial relief. Before, ISM calculations would reduce benefits if recipients received help with food or shelter from outside sources. Now, with food no longer part of the equation, benefits will increase for thousands of recipients.

In total, around 90,000 Americans will see their payments increase by about $131, thanks to this change. For those on SSI, who are already struggling to make ends meet, an extra $131 can be a lifeline, helping to offset inflation and rising costs of living.

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Impact on SNAP

The SSA has also broadened the definition of a “public assistance household,” which positively affects SSI recipients who also receive Supplemental Nutrition Assistance Program (SNAP) benefits. Under the new definition, even if not everyone in the household receives public assistance, the household may still qualify for expanded benefits. This change will enable more recipients to maximize their assistance and better meet their financial needs.

These updates from the SSA come as welcome news for many SSI recipients. In a time when inflation and rising prices are squeezing household budgets, the expanded rental subsidy exception and removal of food from ISM calculations are helping to ease some of that pressure. The $131 increase in benefits for tens of thousands of Americans could provide significant relief.

For those who previously didn’t qualify for SSI or found their benefits reduced due to rent or food support, now is a great time to reassess their eligibility. The SSA’s recent changes are designed to support more Americans in need, ensuring that fewer fall through the cracks.

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