[Congressional Record (Bound Edition), Volume 153 (2007), Part 1]
[Extensions of Remarks]
[Page 645]
[From the U.S. Government Publishing Office, www.gpo.gov]




              THE MILITARY FAMILIES FINANCIAL SECURITY ACT

                                 ______
                                 

                          HON. SUSAN A. DAVIS

                             of california

                    in the house of representatives

                        Tuesday, January 9, 2007

  Mrs. DAVIS of California. Madam Speaker, With the support of my 
colleague, Rep. Jim McDermott, I rise today to introduce the Military 
Families Financial Security Act. This bill will ensure the brave men 
and women who serve our country will not have to worry about losing 
critical services their dependent children need.
  The men and women who serve in our Armed Forces are everyday heroes. 
I know about the valor of military families from my own experience as a 
military wife when my husband was stationed in Japan during the Vietnam 
War. As a wife and mother in a foreign country with two young children, 
I observed that many servicemembers were also mothers and fathers and 
were making the same sacrifices I was. Just as these brave men and 
women are working to protect our Nation, we must likewise protect them 
and their loved ones through the laws and policies we enact.
  In San Diego and around the country, some military families rely on 
the Supplemental Security Income program (SSI) for means-tested 
financial assistance. This safety net program is designed to protect 
qualifying families from poverty and provides access to valuable social 
services such as Medicaid. Without SSI, some special-needs families 
would not be able to cover their medical expenses.
  Current regulations threaten some military families' eligibility. 
They face a unique risk of losing benefits due to the way military pay 
is treated under SSI rules. The Social Security Administration (SSA) 
considers anything outside basic pay as ``unearned income.'' This 
method hurts servicemembers and their families since there are more 
than 30 types of military pay in addition to basic pay. These different 
pays, considered unearned income, result in higher countable income and 
affect eligibility. Just a few dollars can make all the difference in 
the world to these military families.
  My legislation would change how the SSA calculates income for SSI 
eligibility by treating most military compensation as earned income. 
This simple change will keep families eligible for SSI benefits and 
simplify the administration of this program.
  In testimony before the Human Resources Subcommittee of the Ways and 
Mean Committee, Social Security Commissioner JoAnne Barnhart has 
indicated her support for such a proposal.

       The provision would treat cash military compensation and 
     civilian wages alike, and thus eliminate the present unfair 
     and disadvantageous treatment of cash military compensation 
     other than basic pay under SSI. The proposal would increase 
     SSI benefits for most military families with disabled 
     children, which are currently about 3,000 families. It would 
     be a significant program simplification in these cases and 
     would have a relatively small program cost of only $2 million 
     over 10 years.

  She also mentioned how ``determining the difference in the types of 
military pay is time consuming and error prone, and the guidelines for 
making such determinations covers 14 pages in SSA's operating 
instructions.''
  As a proud member of the House Armed Services Committee, I am 
committed to improving the quality of life of the men and women who 
serve our country. This legislation is fair, overdue and demonstrates 
our Nation's appreciation. This legislation will give servicemembers 
peace of mind from knowing that their duties will not jeopardize their 
families' eligibility for SSI benefits and related services.
  I urge you, Madam Speaker, and all of my colleagues to pass this 
critical legislation into law.