H.R. 2540: SSI Savings Penalty Elimination Act (119th Congress) Bill Summary

This legislation, titled the SSI Savings Penalty Elimination Act, aims to modify the Supplemental Security Income (SSI) program, which provides financial assistance to individuals with limited income and resources. The main provisions of the bill are as follows:

1. Increase in Resource Limits

The bill proposes a significant increase in the resource limits for eligibility in the SSI program:

For individuals, the resource limit will increase from $2,250 to $20,000 starting in calendar year 2025.
For couples, the resource limit will increase from $1,500 to $10,000 starting in calendar year 2025.

These limits are subject to annual adjustments based on inflation as specified in another section of the Social Security Act.

2. Inflation Adjustment for Future Years

The bill will also introduce an inflation adjustment mechanism for the resource limits specified in the SSI program:

Starting in calendar year 2026 and thereafter, the resource limits will be adjusted annually based on the Consumer Price Index (CPI) to ensure that the limits keep pace with inflation.
The adjustments will be calculated by comparing the CPI for the year ending September of the previous year with the CPI for the year ending September 2024.

The intent of these changes is to remove the "savings penalty" that currently discourages SSI beneficiaries from saving money, thereby allowing them to have a greater financial cushion without jeopardizing their benefits.