Dear Senators Cortez Masto and Cassidy and Representatives Davis and Fitzpatrick: 

On behalf of the [XXX] undersigned organizations dedicated to improving the lives of older adults and people with disabilities, we enthusiastically endorse the SSI Savings Penalty Elimination Act, which – for the first time in nearly 40 years – would raise the amount of money Supplemental Security Income (SSI) beneficiaries can save without jeopardizing vital income support from SSI.

SSI provides an extremely modest cash benefit for low-income individuals with disabilities and older adults that meet the program’s strict means-tested criteria. Around 7.4 million people rely on SSI to help them live independently in their communities and meet basic needs for food, clothing, and shelter. SSI beneficiaries include 4 million working-age individuals with disabilities, 1 million children with disabilities, 2.4 million older adults, and 300 thousand veterans.[i]

Unfortunately, while costs for basic necessities have increased over the years, SSI’s strict asset limits have not kept pace with inflation and have remained the same since 1989. An individual on SSI is not allowed to have more than $2,000 in total financial resources at any time. Married couples are only allowed $3,000.[ii] Resources that count towards 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 – leaving many just one emergency away from homelessness and hunger. SSI’s outdated asset limits trap people in poverty, create barriers to work, and constrain their financial independence. A recent analysis by JPMorgan Chase found that the current asset limit makes it difficult for SSI beneficiaries to “achieve any measure of economic security” and called for it to be modernized.[iii] The current asset limits also penalize marriage by subjecting married couples to a lower asset limit than unmarried individuals.

The SSI Savings Penalty Elimination Act would significantly improve the lives of SSI beneficiaries by raising the asset limit to $10,000 per individual and $20,000 per married couple. This will correct a harmful marriage penalty and allow SSI beneficiaries to use their own savings to address emergencies when they arise. The legislation also adjusts that number for inflation every year, a critical element in today’s economy.

Thank you again for your leadership in introducing this critical legislation. We look forward to working with you to ensure this important change becomes law. If you have any questions, please contact Darcy Milburn, The Arc’s Director of Social Security and Healthcare Policy at (Milburn@TheArc.org).

Sincerely,

[i] Social Security Administration (SSA), “SSI Monthly Statistics, January 2025,” January 2025, https://www.ssa.gov/policy/docs/statcomps/ssi_monthly/index.html (accessed February 18, 2025).

[ii] Kathleen Romig, Luis Nuñez, and Arloc Sherman, “The Case for Updating SSI Asset Limits,” June 2023, https://www.cbpp.org/research/social-security/the-case-for-updating-ssi-asset-limits (accessed February 18, 2025); US Bureau of Labor Statistics, “CPI Inflation Calculator,” https://www.bls.gov/data/inflation_calculator.htm (accessed February 18, 2025).

[iii] JPMorgan Chase & Co., “Expanding Economic Opportunity and Mobility for People with Disabilities,” May 2022, https://www.jpmorganchase.com/news-stories/expanding-economic-opportunities-and-mobility-for-people-with-disabilities (accessed February 18, 2025).