Social Security Increases SSI Payments By $132 For Over 40,000 Recipients: Know Additional Benefits

The Social Security Administration (SSA) has introduced a new measure that expands the rental subsidy exception to Supplemental Security Income (SSI) recipients across all 50 states, marking a significant policy shift.

Previously, this benefit was only available in seven states. Now, an estimated 41,000 individuals will see their SSI payments rise by an average of $132 per month as a result of this change.

Expansion of the Rental Subsidy Exception

The rental subsidy exception allows SSI recipients who contribute toward their rent to avoid reductions in their benefits due to what’s known as In-Kind Support and Maintenance (ISM).

ISM considers assistance with housing or food as part of a recipient’s income, which can lead to a reduction in benefits. Under the expanded rule, if you pay rent, you are no longer penalized through ISM calculations, resulting in a higher monthly SSI benefit.

This adjustment is particularly crucial for low-income individuals who rely on SSI to meet their basic living expenses.

By expanding the rental subsidy exception to all 50 states, the SSA has ensured that more people will receive the full amount of SSI benefits they are entitled to, helping them better cope with the rising costs of rent and other essential expenses.

Additional Benefits for SSI Applicants

The $132 increase is not the only advantage of this rule change. The SSA has also indicated that more individuals may now qualify for SSI benefits.

Before this adjustment, some applicants were rejected because their income exceeded eligibility limits when ISM calculations were factored in. With the removal of rental assistance from ISM, those previously disqualified may now be eligible.

If you previously applied and were denied based on income, it’s worth reapplying to see if the new rule qualifies you for benefits.

Removal of Food from ISM Calculations

In addition to the rental subsidy expansion, the SSA is removing food from the ISM calculation, effective from September 30, 2024. This move is expected to impact over 90,000 SSI recipients, increasing their payments by approximately $131 per month.

By excluding food from ISM, the SSA is offering further relief to recipients who previously faced benefit reductions due to the provision of food assistance.

This change is expected to bring significant financial relief to individuals and families grappling with inflation and rising prices, allowing them to retain more of their benefits to cover essential costs.

Impact on SSI Payments

The new measure comes as inflation and the rising cost of living continue to strain the budgets of low-income Americans.

With the average SSI payment currently standing at $698, the additional $132 (for those benefiting from the rental subsidy exception) or $131 (for those impacted by the removal of food from ISM calculations) provides much-needed financial support.

For many recipients, these increases will make a critical difference in meeting daily expenses.

It will be interesting to observe the data in the SSA’s Monthly Statistical Snapshot report for October 2024, where the average SSI payment is expected to show a significant rise. This will highlight how the new rule has influenced the overall SSI payment landscape.

Expanded Definition of Public Assistance Households

As part of the broader changes, the SSA has also expanded the definition of what constitutes a public assistance household. This revision is expected to positively impact individuals who receive Supplemental Nutrition Assistance Program (SNAP) benefits.

If not every member of your household receives public assistance, you may still benefit from this new rule, which could further boost your financial standing.

These recent changes by the Social Security Administration represent a positive step toward supporting SSI recipients facing financial challenges due to inflation and rising living costs.

With the expansion of the rental subsidy exception, the removal of food from ISM calculations, and a broader definition of public assistance households, over 130,000 Americans will see an increase in their monthly payments.

For those who qualify, this additional financial relief can help cover essential living costs and ease some of the burdens associated with low incomes. If you think you may benefit from these changes, it’s worth checking your eligibility or reapplying for SSI.

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