Biden Administration Reducing Penalties In Supplemental Security Income Program

The SSI program disallows beneficiaries from saving money, but new rule changes will allow them to accept food from friends without losing benefits.

WASHINGTON ― The federal government will soon stop docking disability benefits for people whose friends, family or roommates help them out with food.

The Social Security Administration finalized the rule change this week as part of a broader mini-makeover for the Supplemental Security Income program, which provides monthly benefits for more than 7 million Americans with disabilities.

The maximum SSI benefit is $943 per month, but the government can reduce the amount by a third if someone else in the household provides “in-kind support” in the form of food or shelter. Come September, the government will take food out of the equation.

“Simplifying our policies is a common-sense solution that reduces the burden on the public and agency staff and helps promote equity by removing barriers to accessing payments,” SSA commissioner Martin O’Malley said in a press release.

The government did not say how many individuals would be affected, though an initial estimate last year said the proposed change would increase SSI spending by less than 1%. But the Social Security Administration is considering further changes to its in-kind support rules that would have a bigger impact, including one that would shield SSI recipients from benefit cuts if members of the household receive federal food assistance. Another proposal would reduce penalties for receiving help on rent.