New Social Security Measure – SSI Payments Increased by $132

The Social Security Administration (SSA) recently expanded its rental subsidy exception policy for Supplemental Security Income (SSI) applicants and beneficiaries, making it available in all 50 states. Previously limited to just seven states, this rule change is expected to provide significant financial relief for many Americans, including an estimated 41,000 individuals who could see a monthly increase of $132 in their SSI benefits. Here’s what this change means for SSI recipients and how it could affect eligibility and payments.

Rental Subsidy Exception

The rental subsidy exception refers to how In-Kind Support and Maintenance (ISM) is calculated for SSI beneficiaries. ISM represents non-cash assistance, such as free rent or food, that could reduce an SSI payment. The rental subsidy exception allows those paying a certain amount toward rent to avoid reductions in their SSI benefits due to ISM.

Before September 30, 2024, this exception was only available in seven states: Connecticut, Illinois, Indiana, New York, Texas, Vermont, and Wisconsin. With the new policy, this exception now applies nationwide, enabling more SSI recipients to receive higher payments.

Eligibility Criteria

Under the new rule, if an SSI applicant or recipient pays at least the Presumed Maximum Value (PMV) for rent, they will not be considered to receive ISM in the form of rental assistance. This means they are exempt from rent-related deductions in their SSI payment, leading to a higher benefit amount.

Here’s how the new rule works:

• If your monthly rent equals or exceeds the PMV, you are not subject to ISM for rental assistance.
• If your rent is lower than the PMV, Social Security calculates ISM, which is the difference between your rent and the lower of the PMV or the current market rental value (CMRV).

This rule simplifies the SSI process and promotes fairness by ensuring all applicants and beneficiaries have the same opportunity to avoid ISM charges for rent.

State	Rental Subsidy Exception (before)	Expanded Rule (after Sept. 30, 2024)
Connecticut	Available	Available
Illinois	Available	Available
Indiana	Available	Available
New York	Available	Available
Texas	Available	Available
Vermont	Available	Available
Wisconsin	Available	Available
All Other States	Not Available	Available

Additional Benefits

In addition to the rental subsidy exception, the SSA has implemented other changes aimed at boosting benefits and expanding eligibility for SSI recipients:

• In-Kind Support and Maintenance (ISM) Changes: Starting September 30, 2024, food will no longer be considered in ISM calculations. This change is expected to benefit 90,000 SSI recipients, increasing their payments by an average of $131 per month.
• Expanded Definition of Public Assistance Household: The SSA has also broadened the definition of a public assistance household, which will positively impact those receiving SNAP benefits. Households where not everyone receives public assistance can now benefit from expanded rules, helping more people qualify for higher SSI payments.

These changes are particularly important in today’s economic climate, where inflation and rising costs are making it harder for many Americans to make ends meet. The added financial support through SSI can provide much-needed relief.

Who Should Apply?

If you previously applied for SSI and were denied due to income limits, this is an excellent time to reapply. The expanded rental subsidy exception could make you eligible for benefits, even if you didn’t qualify before. The SSA advises applicants to check their eligibility again under the new rules, especially if they are paying rent.

This change is expected to increase the number of qualified SSI recipients, as those who were previously disqualified based on ISM calculations may now meet the income requirements.

Projected Impact

With these new rules in place, SSI recipients can expect to see an increase in their average payments. As of August 2024, the average SSI payment was $698. With the expanded rental subsidy exception and removal of food from ISM calculations, this amount is expected to rise.

The Monthly Statistical Snapshot for October 2024 is expected to show a noticeable increase in the average payment, thanks to these changes.

Take Advantage

If you are an SSI applicant or recipient, here’s what you need to do to benefit from the new rental subsidy exception:

1. Ensure you pay at least the PMV in rent to avoid ISM deductions. If your rent is lower than the PMV, Social Security will calculate ISM based on the difference.
2. Gather necessary documents to show proof of rent payments if you are applying for the rental subsidy exception. Ensure that your rental agreement and payments are up to date.
3. Reapply if you were previously denied SSI benefits due to income limits, as the expanded rules may now make you eligible.
4. Monitor your SSI payments for changes. If you already receive SSI, you should see an increase in your payments if you qualify for the expanded rental subsidy exception or the removal of food from ISM calculations.

The Social Security Administration’s decision to expand the rental subsidy exception and adjust ISM calculations for SSI beneficiaries is a major step toward simplifying the program and promoting fairness. These changes will increase payments for tens of thousands of Americans and open the door for more people to qualify for this critical financial assistance. For those paying rent or living in public assistance households, these adjustments could provide a significant boost in monthly income, helping to offset the rising cost of living.

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