Major Update: Social Security Increases SSI Payments by $132 for 40,000+ Beneficiaries
The Social Security Administration (SSA) has announced an important change: the rental subsidy exception for Supplemental Security Income (SSI) applicants and beneficiaries has been expanded to all 50 states. Previously limited to just seven states—Connecticut, Illinois, Indiana, New York, Texas, Vermont, and Wisconsin—this measure will now provide relief to approximately 41,000 Americans with an average increase of $132 in their monthly benefits. This means that if you pay a specified amount toward rent, you will not be subject to In-Kind Support and Maintenance (ISM) calculations concerning rental assistance.
Additional Benefits for SSI Applicants
In addition to the increased payments, Social Security notes that there are further advantages associated with this new rule. More individuals may qualify for SSI, as the expanded rental subsidy policy opens doors for those who previously fell short of the income limits necessary for approval. If you were previously denied due to income restrictions, now is the time to reapply and see if you qualify under the new guidelines.
The upcoming Monthly Statistical Snapshot for August 2024, set for release in October, will allow SSI recipients to compare their average payments, currently at $698, with the adjustments made due to this rule change.
Changes to ISM Calculations and Their Impact
Starting September 30, 2024, the SSA will no longer consider food in the ISM calculations. This significant alteration is expected to boost benefit amounts for over 90,000 recipients, with an anticipated increase of approximately $131 for those affected. This relief comes at a critical time as inflation and rising costs make it increasingly challenging for individuals to manage their expenses.
Moreover, the SSA has broadened the definition of a public assistance household, positively impacting those who receive Supplemental Nutrition Assistance Program (SNAP) benefits. Recipients will benefit even if not everyone in their household is receiving public assistance.
For more information about these changes, visit the SSA Press Release.
Eligibility Criteria for the New Rent Subsidy Exception
The new policy, effective September 30, 2024, simplifies the SSI program and promotes equitable rental assistance nationwide. Under this revised policy, a “business arrangement” is defined, meaning that SSI applicants or recipients will not be deemed as receiving ISM if their monthly rent is equal to or exceeds the Presumed Maximum Value (PMV).
If an applicant’s rent is below the PMV, ISM is calculated as the difference between the rent and the lower of the PMV or the Current Market Rental Value (CMRV). However, there are exclusions available that can offset this ISM charge.
Overall, this expansion aims to enhance the SSI program by increasing payments for some beneficiaries and expanding eligibility criteria, ultimately promoting fairness and uniformity in rental assistance across the country.
