Bill Overview
Title: SSI Savings Penalty Elimination Act
Description: This bill increases resource limits used to determine eligibility for the Supplemental Security Income (SSI) program. SSI is a federal assistance program that provides monthly cash payments to aged, blind, or disabled individuals with limited income and resources. Specifically, the bill increases the resource limits from $2,000 to $10,000 for individuals and from $3,000 to $20,000 for married couples. The bill annually adjusts the limits for inflation.
Sponsors: Sen. Brown, Sherrod [D-OH]
Target Audience
Population: Individuals who are aged, blind, or disabled with limited income and resources.
Estimated Size: 7900000
- The SSI program provides support to low-income aged, blind, or disabled individuals.
- Approximately 7.9 million people received SSI benefits in 2021, according to the Social Security Administration.
- The increase in resource limits will enable more individuals to qualify for SSI or to maintain eligibility as their savings increase, thus directly impacting current and potential SSI beneficiaries.
- Globally, only U.S. citizens and some authorized non-citizens living in the U.S. are eligible for SSI, so this legislation affects primarily U.S. residents.
Reasoning
- When simulating the effects of this policy, it is important to consider how different demographics of the population would experience the changes based on their current resources and needs.
- The SSI program is specifically aimed at low-income aged, blind, or disabled individuals, so a direct way to measure the impact of this policy is by interviewing beneficiaries or those close to becoming beneficiaries.
- The budget constraints and specified target population mean that not every individual in need will benefit, so the interviews aim to reflect a mix of beneficiaries—some who will see improvements due to the legislation and some who may not be affected due to the limits of the policy.
- The diversity in gender, age, location, and different disabilities of the interviewees will provide a comprehensive understanding of how the policy may impact various individuals.
Simulated Interviews
Retired (New York, NY)
Age: 72 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- I can now save up a bit more for emergencies without losing my SSI benefits.
- This change gives me peace of mind about handling unexpected expenses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Unemployed due to disability (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 15.0 years
Commonness: 15/20
Statement of Opinion:
- It might make me eligible for SSI and help support daily needs.
- Knowing this change is possible reduces some stress around future finances.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Part-time caregiver (Los Angeles, CA)
Age: 64 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- The increase in resource limits could make it easier to handle medical expenses.
- I hope it will lessen the stress of living paycheck to paycheck.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 9 | 5 |
Freelancer (Chicago, IL)
Age: 29 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- This might help me through rough months without losing SSI, if I qualify.
- There's now a better safety net available which is reassuring.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Retired early due to illness (Rural Kansas)
Age: 53 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 12.0 years
Commonness: 4/20
Statement of Opinion:
- It's a relief to know my small savings account won't impact my SSI.
- The added flexibility allows for small improvements to my living situation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Unemployed (Miami, FL)
Age: 50 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 20.0 years
Commonness: 12/20
Statement of Opinion:
- This might allow better financial planning for challenging times.
- I hope this policy passes soon—it can change lives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Part-time retail worker (Phoenix, AZ)
Age: 62 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 8.5 years
Commonness: 9/20
Statement of Opinion:
- It might finally allow me to qualify for SSI without hurting my small savings.
- Brings hope for smoother transition into retirement with some security.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Artist (Seattle, WA)
Age: 36 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 7/20
Statement of Opinion:
- Allows me to keep a small emergency fund without risking SSI eligibility.
- It's a huge relief—it means I can plan better for personal growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Homemaker (Atlanta, GA)
Age: 58 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Policy changes would ease financial stress significantly and aid in medical costs.
- My husband and I could breathe easier about our future together.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 4 |
Administrative assistant (Denver, CO)
Age: 40 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 7.0 years
Commonness: 14/20
Statement of Opinion:
- Increased resource limits encourage me to apply, which would provide needed aid.
- Could potentially bridge the gap during health-related work disruptions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $8000000000 (Low: $7000000000, High: $9000000000)
Year 2: $8400000000 (Low: $7350000000, High: $9450000000)
Year 3: $8800000000 (Low: $7700000000, High: $9900000000)
Year 5: $9500000000 (Low: $8300000000, High: $10700000000)
Year 10: $11000000000 (Low: $9500000000, High: $12500000000)
Year 100: $30000000000 (Low: $25000000000, High: $36000000000)
Key Considerations
- The policy change significantly raises the resource limits from $2,000 to $10,000 for individuals and from $3,000 to $20,000 for couples, allowing more people to qualify for SSI.
- Annual inflation adjustments could lead to continual increases in program cost beyond initial estimates.
- There may be indirect economic effects due to increased spending among beneficiaries, potentially boosting local economies.