Key SSI Policy Change Effective September 30, 2024
Description: Receipt of SNAP Benefits in an SSI Recipient’s Household Can Now Eliminate SSI’s Deeming of Income From a Parent or Spouse, and Result in a Larger SSI Payment.
Receipt of SNAP Benefits in an SSI Recipient’s Household Can Now Eliminate SSI’s Deeming of Income From a Parent or Spouse, and Result in a Larger SSI Payment
This is one of three key Supplemental Security Income (SSI) policy changes that were effective September 30, 2024. Each policy addresses a situation in which the SSI program will no longer follow certain in-kind support and maintenance (ISM) rules, including: 1) one allowing an SSI recipient, who pays rent at less than the full market value, to avoid having the savings count as a form of in-kind support for housing so long as the recipient pays at least the Presumed Maximum Value amount pursuant to a “Business Arrangement”; 2) one providing that a gift of food, a contribution toward the cost of food, or a free meal will no longer count as income to the SSI recipient who receives the gift; and 3) one relating to receipt of SNAP benefits, discussed below. Each policy is briefly summarized in the members only, Policy Updates section of
Introduction
Many SSI applicants and recipients reside in households with other family members, including spouses or parents. SSI policy has long considered the spouse’s or parents’ income (until the child turns 18) when determining SSI eligibility and monthly payment amount under a “deeming of income” formula. When a deeming budget determines that some of the spouse’s or parents’ income is “countable income” of the applicant or recipient, their SSI payment could be reduced, they could be found ineligible for any SSI payment in one or more months, or their SSI application could be denied.
A 1980 policy provided special treatment for SSI applicants or recipients who resided in a Public Assistance (PA) household, i.e., one in which all household members received at least one of seven means-tested public income-maintenance (PIM) payments. When that criterion was met, both the PIM payments and the income of the ineligible spouse or parent used to determine the PIM eligibility were excluded and not deemed to determine the SSI eligibility or payment amount of the spouse or child in question. In
addition, when an SSI recipient lived in a PA household, the usual ISM rules would not apply to support the recipient received from any member of the household:
“If you live in a public assistance household, we consider that you are not receiving in-kind support and maintenance from members of the household. In this situation, we use the presumed value rule only if you receive food or shelter from someone outside the household.” 20 CFR 416.1142(b)1 See also, SSA Program Operations Manual System (POMS) SI 00835.130 C.2.
In short, living in a PA household provides two advantages to an SSI recipient: (1) deemed income may be reduced or eliminated, and (2) food or shelter received from someone in the household does not count as ISM.
Effective September 30, 2024, the new policy makes two key changes to the old rules:
First, it revised the definition of PA household by adding Supplemental Nutrition Assistance Program (SNAP) payments to the existing list of seven means-tested PIM programs.
Second, the SSI program changed its definition of a PA household “from one in which every member receives a PIM payment to one in which the household has both an SSI applicant or recipient, and at least one other household member who receives one or more of the listed PIM payments.”2
The SSI program will now “exclude from deemed income any [PIM] payment [within the PA household] and any income used to compute such payment”(POMS SI 01320.141).
Many SSI recipients, who live in a PA household where one or more household member(s) receive SNAP payments based on the spouse’s or parent(s)’ income, will likely see their SSI benefits increase as the spouse’s or parent(s)’ income is no longer counted (or “deemed”) to determine their SSI monthly payment. In some cases, persons previously found ineligible for any SSI payment will now be eligible for SSI and, in most states, eligible for Medicaid as an SSI recipient. These individuals and their families should consider filing a new SSI application based on the PA household rule changes.
Our focus, below, is on how these policy changes will impact an SSI applicant or recipient who lives with a spouse or a parent whose income was considered to determine SNAP eligibility for one or more members of the PA household (other than the SSI recipient). Case examples will compare and contrast how the old and new policies would impact some typical SSI recipients. Finally, we suggest ways members can get the word out so that persons covered by the new policy can take advantage of it.
When a Public Assistance Household Exists
The Historical, 1980 Definition of PA Household
Prior to September 30, 2024, the PA household definition required that every household member received at least one means-tested public income maintenance (PIM) payment. When the old policy was created in 1980, SSI identified seven benefits that qualified as PIM payments:
Temporary Assistance to Needy Families (TANF);
State or local government general assistance payments based on financial need;
SSI (included federally administered and state administered State Supplement Payments);
Refugee Assistance;
Disaster Relief and Emergency Assistance Relief;
General Assistance from the Bureau of Indian Affairs; and
VA Pensions and other needs-based benefits from the Department of Veterans Affairs.
The New Definition of PA Household
The new policy added Supplemental Nutrition Assistance Payments (SNAP, formerly Food Stamps) to the list of seven PIM payments.
The new policy then redefined a PA household as “one that has both [an SSI] applicant or recipient, and at least one other household member who receives one or more of the [eight] listed PA payments.” POMS SI 00835.130 B (emphasis added; PIM payments are also referred to as “PA payments” in the policy). As noted above, prior to September 30, 2024, the PA household definition required that every household member received at least one PIM/PA payment.
Case Examples: How Outcomes Are Different Before and After September 30, 2024
The new rules will impact SSI applicants and recipients who, prior to September 30, 2024, would have had their SSI eligibility determined based on the amount of income
deemed to them from a spouse or parent residing in the same household who was not eligible for SSI. The examples estimate SSI payment rates and SNAP payment rates based on the use of online and other tools and are used for illustrative purposes. The SSI rules that apply are consistent nationwide, while the primary SNAP eligibility rules are consistent nationwide with some state options (such as more relaxed asset rules) allowing for more persons to qualify for SNAP payments.3 If the examples were real cases, they would provide reasonable screening tools to suggest that SSI should be recalculated in light of the policy change.
Spouse-to-Spouse Deeming Example. Clarence, age 41, is an SSI recipient. He is married to Tanya, age 43, who works and earned $2,975 gross per month during all of 2024. Clarence and Tanya live in a household with their two daughters, ages 13 and 15.
Neither daughter receives income from any source. Clarence is the only household member who received SSI, at the rate of $442 per month through September 2024.4 Their monthly rental cost is $1,950. In their SNAP application, there is no claim for deductions for either childcare or medical expenses.
Assume that this family lives in Western New York. All four persons in Clarence’s household are part of the SNAP household. Using a Benefits Plus Online SNAP Calculator for New York, the family would likely be eligible for $643 in SNAP payments for the benefit year that started October 1, 2024. We assume that in the first nine months of 2024, the family received SNAP payments in a slightly lesser amount based on pre-10/1/24 payment rates.
In October 2024, Clarence and Tanya learn about the policy changes related to receipt of SNAP benefits, discussed above. With help from a benefits counselor, Clarence sends a written request to the SSI program asking that his SSI payments be recalculated based on the new policy.5 The SSI program does this recalculation in early December 2024. It determines that none of Tanya’s earnings will be deemed to Clarence because her earnings were considered as part of the household’s SNAP eligibility determination. Since Clarence’s countable income is now $0, his SSI payment rate is revised to $943 per month starting October 2024, an increase of $501 per month over the $442 SSI payment he received during the first nine months of 2024!
How will the SSI increase affect the household’s SNAP eligibility? The likely SNAP eligibility payment of $643 was based, in part, by including Clarence’s $442 SSI payment in the SNAP eligibility calculator. When we do a new calculation, factoring in Clarence’s new $943 SSI payment, his family’s SNAP payment will likely be reduced to
$418 per month – a decrease of $225 in his SNAP payments. When we subtract the SNAP decrease from the SSI increase, the family’s net benefit from the two recalculations is $276 per month ($501 – 225). Readers must be aware that if this family receives any other means-tested benefit, the higher SSI payment could lead to additional benefit reductions.
While state rules for when to report an increase in the SNAP household’s income may vary, the likely SNAP rule is that Clarence or Tanya are expected to report the increase in his SSI payment within 10 days of receipt.
Parent-to-Child Deeming Example. Vladdy, age 44, lives with his three children, ages 7, 9, and 16. Vladdy works and earned $3,800 gross per month throughout 2024. His 16 year old, Jose, receives $520 in monthly SSI benefits6 and is the only household member who receives SSI. The other two children do not receive income from any source. Their monthly rental cost is $1,650. In their SNAP application, there is no claim for deductions for either childcare or medical expenses.
Assume that this family lives in Western New York. All four persons in Vladdy’s household are part of the SNAP household. Using the Benefits Plus Online SNAP Calculator for New York, the family would likely be eligible for $221 in SNAP payments for the benefit year that started October 1, 2024. We assume that in the first nine months of 2024, the family received SNAP payments in a slightly lesser amount based on pre-10/1/24 payment rates.
In October 2024, Vladdy learns about the policy changes related to receipt of SNAP benefits, discussed above. With help from a benefits counselor, Vladdy sends a written request to the SSI program asking that his child’s SSI payments be recalculated based on the new policy.7 The SSI program does this recalculation in early December 2024. It determines that none of Vladdy’s earnings will be deemed to 16 year old Jose because Vladdy’s earnings were considered in the household’s SNAP eligibility determination.
Since Jose’s countable income is now $0, the SSI payment rate is revised to $943 per month effective October 2024, an increase of $423 per month over the $520 SSI payment received during the first nine months of 2024!
How will the SSI increase affect the household’s SNAP eligibility? The likely SNAP eligibility payment of $221 was based, in part, by including the child’s $520 SSI payment into the SNAP eligibility calculator. When we do a new calculation, factoring in the new
$943 SSI payment, the family’s SNAP payment will likely be reduced to $141 per month, a decrease of $80 in SNAP payments. When we subtract the SNAP decrease from the SSI increase, we see that the family’s net benefit from the two recalculations is $343 per month ($423 – 80). Readers must be aware that if this family receives any other means-tested benefit, there is a possibility of some loss of those benefits. As suggested in the previous example, this change in income should be reported to the SNAP program within 10 days of the SSI amount change, unless program guidance suggests a different requirement.
Conclusion
This policy change is overall financially favorable to SSI recipients. The increase in SSI can affect, however, other means-tested benefits. As highlighted in our two examples, the SSI increase was partially offset by a decrease in SNAP payments. The net monthly benefits to the family -- $276 in the first case, $343 in the second case – were still considerable to the families involved, but considerably less than the increase to the SSI payment suggests. If counseling the SSI recipient or family, benefits counselors must be careful to let them know the SSI increase could be offset by a decrease in SNAP benefits. We must also be careful to find out if the recipient or family might have another means-tested benefit that could be affected by an SSI payment increase.
Help Us Get the Word Out to SSI Recipients, Their Families, and Provider Agencies.
The Social Security Administration made it clear in their Federal Register posting of these final rules that they lack the resources to proactively review and re-budget all existing SSI cases that may be impacted by these changes. Instead, the immediate
impact will only be on new applications pending or decided after September 30, 2024. Existing cases will not be reviewed until they come up for an SSI redetermination which might not occur for 12 months or more.
But SSA will be required to do a review if the recipient requests it. This makes it important that NABWIS members get the word out: to those in your caseloads and to those you served in the past who might benefit from these policy changes. It is also critical to reach out to various provider agencies who can identify persons they are
serving who may benefit from these changes. In the next two pages, we have provided readers with model letters to the SSI program requesting a recalculation of SSI in light of these changes. If you have created tools you are using, please share them with
NABWIS board member, Jim Sheldon (jsheldon44@verizon.net).
Dated: March 6, 2025
Authors: James R. Sheldon, JD (Board Member), Disability Consultant and Edwin J. Lopez-Soto, JD (NABWIS member), Disability Consultant
NABWIS Model SSI Letter – Spouse’s Income, SNAP Benefits
(Adjust letter based on facts of your case.)
Month, Day, Year
Social Security Administration
Street Address or PO Box
City, State, Zip Code
Attn: Title XVI (SSI) Section
Re:
Name of Adult SSI Recipient:
Social Security Number:
Request to Recalculate SSI Benefits
To Whom It May Concern:
I am writing to request a recalculation of my SSI payment amount, based on a change in SSI policy that became effective on September 30, 2024.
I receive an SSI payment of $ per month. This is based on monthly income of (check all that apply): myself my spouse. Our household includes (list parent or parents, any children and their ages): .
Our household receives $ per month in Supplemental Nutrition Assistance Payments (SNAP). Our SNAP benefit amount is based on the same monthly income that was used to calculate my SSI payment.
A new policy requires that the SSI program will no longer count my spouse’s income when you calculate my SSI payment. This is because that income was used to calculate our family’s SNAP benefits. See Social Security Program Operations Manual System (POMS) SI 01320.141 A (effective 9/30/24). Based on this new policy, I request that you recalculate my SSI payment beginning with the month of October 2024.
Thank you for your assistance and let me know if you need any additional information.
Sincerely,
{signature}
{print name}
NABWIS Model SSI Letter – Parental Income, SNAP Benefits
(Adjust letter based on facts of your case.)
Month, Day, Year
Social Security Administration
Street Address or PO Box
City, State, Zip Code
Attn: Title XVI (SSI) Section
Re:
Name of Child SSI Recipient:
Social Security Number:
Request to Recalculate SSI Benefits
To Whom It May Concern:
I am writing as the parent and representative payee of to request a recalculation of my child’s SSI payment amount, based on a change in SSI policy that became effective on September 30, 2024.
My child receives an SSI payment of $ per month. This is based on monthly income of (check all that apply): myself my spouse. Our household includes (list parent or parents, child who gets SSI, any brothers or sisters and their ages): .
Our household receives $ per month in Supplemental Nutrition Assistance Payments (SNAP). Our SNAP benefit amount is based on the same monthly income that was used to calculate my child’s SSI payment.
A new policy requires that the SSI program will no longer count my income or my spouse’s income when you calculate my child’s SSI payment. This is because that income was used to calculate our family’s SNAP benefit amount. See Social Security Program Operations Manual System (POMS) SI 01320.141 A (effective 9/30/24).
Based on this new policy, I request that you recalculate my child’s SSI payment beginning with the month of October 2024.
Thank you for your assistance and let me know if you need any additional information.
Sincerely,
{signature}
{print name}
Footnotes:
1 When the Presumed Maximum Value (PMV) rule applies, up to one third of the SSI Federal Benefit Rate ($322.33) plus $20, in 2025, can be considered in-kind income to the recipient.
2 20 CFR 416.1142(a) (emphasis in original), as posted at 89 Federal Register 28610 (4/19/24).
3 See A Quick Guide to SNAP Eligibility and Benefits (Center on Budget and Policy Priorities, Sept. 30, 2024 Update).
4 The estimated SSI payment amount was calculated using an Excel-based Parent-to-Child Deeming Calculator. The illustrative calculations do not factor in any SSI State Supplement.
5 See NABWIS Model Letter to SSI Program – Spouse’s Income, SNAP Benefits (attached at end of article and available at the members only section of www.NABWIS.org).
6 The estimated SSI payment amount was calculated using an Excel-based Parent-to-Child
Deeming Calculator. The illustrative calculations do not factor in any SSI State Supplement.
7 See NABWIS Model Letter to SSI Program – Parent(s)’ Income, SNAP Benefits (attached at end of article and available at the members only section of www.NABWIS.org.
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