S. 4001: Supplemental Security Income Restoration Act of 2026

This bill, known as the Supplemental Security Income Restoration Act of 2026, proposes several updates and changes to the Supplemental Security Income (SSI) program. Here’s a breakdown of what the bill aims to accomplish:

Updates in Eligibility

• General Income Exclusion: The amount that can be excluded from income for SSI eligibility is proposed to be raised from $240 to $1,892, adjusted annually for inflation.
• Earned Income Exclusion: Currently set at $780, this exclusion would be increased to $6,149, also adjusted for inflation thereafter.
• Resource Limits: The resource limit for individuals will increase from $2,250 to $20,000 and for couples from $1,500 to $10,000, with similar annual adjustments.

Benefit Amounts and Marriage Penalty

• Benefit Updates: The monthly benefit amounts will be adjusted based on the federal poverty guideline, which aims to better align SSI payments with the cost of living.
• Repeal of Marriage Penalty: The bill seeks to eliminate the disparity in benefits for married individuals versus single individuals, allowing them to receive benefits based on combined income rather than being penalized for being married.

Treatment of Income and Resources

• In-Kind Support: Support provided in kind (like food or rent assistance) will not be counted as income for SSI eligibility.
• Retirement Accounts: Funds in retirement accounts will be excluded from resource calculations when determining SSI eligibility.
• Resource Disposal Penalty Repeal: The bill proposes to eliminate penalties for individuals who dispose of resources below fair market value.

State Tax Credits and Tribal Payments

• State Tax Credits: Clarifies that state tax credits and refunds will not be counted as income.
• Tribal General Welfare Payments: Proposes to exclude Indian General Welfare benefits from income and resources assessments.

Other Administrative Changes

• Elimination of Dedicated Accounts: Removes the requirement for dedicated accounts for past-due benefits.
• Extension of Exclusion Periods: Increases the exclusion period for certain payments from 9 to 21 months.
• Modifications for Marital Status Determination: Updates the rules for recognizing marital relationships for the purposes of SSI.
• Extension to U.S. Territories: Expands SSI eligibility to Puerto Rico, the U.S. Virgin Islands, Guam, and American Samoa, eliminating existing payment caps for these territories.

Effective Date

The changes proposed in this bill would take effect at the start of the first calendar month, one year after its enactment.

Relevant Companies

None found