New Social Security Measure Boosts SSI Payments By $132 For Over 40K Recipients: Know Eligibility

By Amit Tiwari

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New Social Security Measure Boosts SSI Payments By $132 For Over 40K Recipients

The Social Security Administration (SSA) recently introduced a new measure extending rental subsidy exceptions for Supplemental Security Income (SSI) across all 50 states. Previously available in only seven states, this expansion allows eligible recipients paying a certain amount in rent to qualify for an average monthly SSI increase of $132, benefitting approximately 41,000 Americans.

This change, along with additional updates to how In-Kind Support and Maintenance (ISM) is calculated, offers relief and increased eligibility to low-income households across the nation.

Here’s how this measure works and who qualifies for the enhanced benefits.

Expanded Rental Subsidy Exception

The newly expanded rental subsidy exception allows SSI recipients who meet specific rental payment requirements to qualify for higher payments by avoiding reductions associated with ISM.

ISM reductions can occur if SSI recipients receive help with housing or food costs, lowering their monthly benefit amount. With this update, if an SSI recipient pays at least the Presumed Maximum Value (PMV) in rent, they won’t be subject to ISM deductions for rental assistance.

This measure is especially beneficial for low-income households struggling with high rent, as it could significantly increase their monthly SSI benefit.

Previously, this rental subsidy exception applied only in Connecticut, Illinois, Indiana, New York, Texas, Vermont, and Wisconsin. Now, it is available nationwide, allowing many more SSI recipients to benefit from an expanded definition of independent living.

Impact on SSI Payments

The SSA estimates that approximately 41,000 Americans will see an increase in their SSI benefits due to the expanded rental subsidy policy, with payments rising by an average of $132 per month for those qualifying.

Additionally, over 90,000 recipients will receive an increase averaging $131 per month due to changes in ISM calculations, which no longer factor in food support. Together, these updates provide critical financial relief at a time when inflation and living costs continue to climb.

In practical terms, this measure could raise the average SSI monthly payment, currently around $698, providing low-income Americans with more resources to cover essentials like food, utilities, and other basic living expenses.

Removal of ISM Calculations for Food

Starting September 30, 2024, SSA made another significant change by excluding food from ISM calculations. Previously, if recipients received help with groceries or food expenses, their SSI payment could be reduced.

With this rule change, food assistance no longer counts against recipients, effectively boosting the benefit amount for around 90,000 SSI recipients.

The removal of food from ISM calculations is part of the SSA’s efforts to simplify and standardize the SSI program. This change, alongside the new rental subsidy exception, promotes fairness, making SSI more accessible and equitable for those who rely on federal support to make ends meet.

Expanded Definition of Public Assistance Household

Another SSA change aimed at promoting fairness is an expanded definition of what constitutes a public assistance household. For SSI recipients who live in households where not everyone receives public assistance, this updated definition may positively impact benefit amounts.

For example, if an SSI recipient lives with family members who receive SNAP benefits, they may now qualify for additional SSI benefits even if not all household members are receiving SSI or other public assistance.

These updates collectively aim to help more low-income Americans qualify for SSI benefits and to increase payments for those already eligible.

Eligibility Criteria for the New Rental Subsidy Exception

Here’s what SSI applicants and recipients need to know to qualify under the new rental subsidy exception:

  1. Geographical Eligibility: The rental subsidy exception is now available across all 50 states, including territories, as of September 30, 2024.
  2. Business Arrangement Requirement: To avoid ISM deductions for rental assistance, the SSI applicant or recipient must have a “business arrangement,” meaning they pay rent that equals or exceeds the PMV for their area.
  3. ISM Calculation: If rent is lower than the PMV, ISM will be calculated as the difference between rent and the lower of the PMV or the current market rental value (CMRV). However, other exclusions may offset this ISM charge, allowing some flexibility in qualifying for higher payments.

By making these changes, the SSA simplifies the application process and broadens access to SSI for applicants and current recipients across the country. This update may also help more people qualify for SSI benefits by loosening restrictions related to rental support and income levels.

What SSI Recipients Should Expect

These changes bring much-needed relief to SSI recipients in the U.S., with increased monthly payments that can make a meaningful difference for households under financial strain.

It’s expected that the expanded rental subsidy exception and new ISM calculations will improve benefit amounts in the Monthly Statistical Snapshot beginning in October 2024, showing a rise in average SSI payments.

The SSA advises all SSI recipients to check if they meet the eligibility requirements for these expanded benefits and to reapply if they were previously ineligible due to income limits. Those receiving SNAP or living in public assistance households may also want to explore these changes to see if they qualify for increased support.


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Amit Tiwari

A tax law expert with a knack for breaking down complex regulations into digestible insights. Amit’s articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

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