[Congressional Record (Bound Edition), Volume 147 (2001), Part 2]
[Extensions of Remarks]
[Page 2362]
[From the U.S. Government Publishing Office, www.gpo.gov]



           INTRODUCTION OF THE SSI MODERNIZATION ACT OF 2001

                                 ______
                                 

                        HON. BENJAMIN L. CARDIN

                              of maryland

                    in the house of representatives

                       Tuesday, February 27, 2001

  Mr. CARDIN. Mr. Speaker, many States have decided to increase the 
amount of money welfare recipients can earn before their Temporary 
Assistance for Needy Families (TANF) benefit is reduced. This strategy 
produces two very beneficial effects: It rewards and promotes 
employment and it helps working families escape poverty. Unfortunately, 
the primary Federal program that helps low-income disabled and elderly 
Americans has not pursued a similar strategy. In fact, the income 
exclusions for the Supplemental Security Income (SSI) program have been 
frozen in time for nearly thirty years.
  In 1972, a general income exclusion (GIE) for SSI was set at $20 a 
month, meaning the first $20 of outside income did not count dollar for 
dollar against the SSI benefit amount, which is currently $530 a month 
for an individual. This GIE is usually applied to Social Security 
income, which of course is based on past employment. In addition, an 
earned income exclusion was also established in 1972 to allow a 
disregard of the first $65 a month, plus half of the remaining 
earnings. Neither of these provisions, which reward past and current 
work efforts, have been increased in the past three decades. If they 
had kept pace with inflation over that time period, the GIE would be 
worth $80 a month and the earned income exclusion would be set at $260 
a month.
  I am introducing the SSI Modernization Act to reduce these work 
disincentives, as well as to decrease obstacles to saving and pursuing 
an education. The bill would increase the GIE to $40 a month and the 
earned income exclusion to $130 a month, and then index those amounts 
to inflation in future years. To encourage individuals to save for 
their future, the bill also would increase the SSI asset limit from 
$2,000 for an individual and $3,000 for a couple to $3,000 for an 
individual and $4,500 for a couple. Furthermore, the legislation would 
increase the disregard level for small amounts of income received on an 
irregular basis, and it would simplify the treatment of educational 
grants and scholarships under SSI income and asset rules. Finally, the 
bill would postpone eligibility redeterminations for SSI recipients 
turning 18 years of age, if they are attending a secondary school and 
are under the age of 21. This last provision recognizes that applying a 
work-based eligibility standard (under which adults are considered) is 
not appropriate for a disabled youth still attending high school.
  Mr. Speaker, I urge my colleagues to support this effort to update 
the SSI program and to increase incentives for working, saving and 
pursuing an education. Having waited almost thirty years to address 
many of these issues, we cannot afford to wait any longer to reward 
work and to improve the quality of life for our Nation's disabled and 
elderly.

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