Since 1989, people with disabilities have been unable to save more than $2,000 in assets without losing their Supplemental Security Income (SSI). Furthermore, if they want to get married, their combined asset limit becomes $3,000 instead of $4,000 for two unmarried individuals. These outdated rules are unfair and discriminatory, and they disincentivize savings and the lifetime commitment of marriage. 

 The bipartisan, bicameral SSI Savings Penalty Elimination Act (H.R. 5408/S.2767), led by Senator Bill Cassidy (R-LA), Senator Catherine Cortez Masto (D-NV), Representative Brian Fitzpatrick (R-PA), and Representative Danny Davis (D-IL) would empower millions of people with disabilities to earn and save more money for their futures by: (1) Raising the asset limits for individuals to $10,000; (2) Raising the asset limits for couples to $20,000 to help correct a harmful marriage penalty; and (3) Indexing the asset limits to inflation moving forward. 

 SSI is critically important to people with Down syndrome and other disabilities because it provides monthly cash payments to people with disabilities and older adults who have little or no income or resources to pay for basic needs like food, clothing, and shelter. The monthly cash payments provided by SSI are extremely modest amounts, but SSI beneficiaries are currently unable to save more than $2,000 in total financial resources at any time (married couples are only allowed $3,000). Resources that count toward the SSI asset limit include cash, money in bank accounts, most retirement accounts, stocks and bonds, the value of life insurance policies and burial funds over $1,500, and some personal property.  As a result, SSI beneficiaries cannot save for necessary expenses like a security deposit or car repairs without the risk of losing their benefits.  

 SSI also serves as a gateway to other crucial public benefits such as Medicaid, which provides health care and waiver services. If SSI beneficiaries exceed asset limits, these essential benefits could be at risk. SSI’s strict asset limits have not kept pace with inflation and ignore the reality that costs for basic necessities have dramatically increased since 1989. As a result, SSI beneficiaries and their families are unable to have economic security or protect themselves against financial hardships. They are also less likely to get married because doing so would reduce by 25% their allowable asset savings (this is part of the “marriage penalty”). 

 The SSI Savings Penalty Elimination Act would make a long overdue correction to an out-of-date policy that discourages people from saving money and also disincentivizes them from getting married. It would also permanently index them to inflation so they will adequately reflect the cost of living. Please contact your U.S. Senators and Representatives and ask them to cosponsor this bipartisan bill. You can call the Capitol Switchboard at (202) 224-3121, email your Member of Congress directly through their website, or use NDSC’s Action Alert.