For people with disabilities, financial independence is an important part of living a full and meaningful life. Yet for millions of Americans who rely on Supplemental Security Income (SSI), an outdated federal policy can make something as simple as saving money a threat to their financial stability.
Beginning in January, the maximum monthly federal SSI benefit for individuals will increase to $1,029, surpassing $1,000 for the first time. And while that increase is welcome, the amount of money an individual can have in savings and other countable assets without jeopardizing their benefits remains just $2,000.
That limit has not changed since the 1980s.
When it was established, $2,000 represented more than five months of SSI benefits. Today, it represents less than two. And while the cost of living has increased dramatically over the past four decades, the rules governing how much someone can save have remained frozen in time.
Think about what that means for someone trying to build a more independent life. Saving for a security deposit on an apartment, an unexpected car repair or a replacement part for a wheelchair could put their SSI benefits at risk. In many cases, losing SSI can also jeopardize access to Medicaid and the essential health care services it provides.
At Community Access Unlimited, we see firsthand how policies like these affect people. Through our housing, employment, life skills and financial management programs, we support more than 3,000 people in building greater independence and participating fully in their communities.
Recently, one person we serve lost Medicaid coverage after exceeding the $2,000 asset limit. Our team worked with the individual and their family to explore options for protecting those funds, including an ABLE savings account, and helped them reapply for Medicaid coverage.
ABLE accounts offer one important option, allowing eligible people with disabilities to save money for qualified expenses without automatically jeopardizing certain public benefits. But these accounts do not eliminate the need for broader reform.
Two pieces of legislation currently before Congress offer opportunities for change. The bipartisan SSI Savings Penalty Elimination Act would raise the individual asset limit to $10,000 and adjust it for inflation going forward. The SSI Restoration Act would address another outdated restriction that begins reducing SSI benefits once an individual’s countable earnings exceed just $65 a month. It’s a threshold that has remained unchanged for decades.
Neither proposal has received a congressional hearing this session.
At CAU, we believe public policies should support the independence and financial security that people with disabilities work so hard to achieve. The ability to save for an emergency, pursue employment and plan for the future should be encouraged.
We support meaningful reform of these outdated rules and will continue advocating for policies that promote greater opportunity and independence.
For those who would like to learn more or share their perspectives with federal lawmakers, the U.S. Capitol switchboard can be reached at (202) 224-3121 to connect with your senators or representative.
After all, financial independence should be something people with disabilities can work toward with confidence, knowing that planning for tomorrow won’t put their security today at risk.