Washington, D.C. – Congressmen Brian Fitzpatrick (PA-1) and Danny K. Davis (IL-) have introduced the SSI Savings Penalty Elimination Act, a bipartisan, bicameral bill that would modernize the Supplemental Security Income (SSI) program for the first time in over four decades. Currently, SSI’s outdated asset limits penalize low-income seniors and individuals with disabilities for saving responsibly—forcing many to choose between building financial security and maintaining access to critical benefits. This legislation would eliminate these punitive restrictions and bring the program in line with today’s economic realities. Companion legislation has been introduced in the Senate by Senators Catherine Cortez Masto (D-NV), Bill Cassidy (R-LA), and Senate Finance Committee Ranking Member Ron Wyden (D-OR).
Under current law, individuals aged 65 or older—or those living with disabilities—are only eligible for SSI benefits if they have less than $2,000 in assets. For married couples, the limit is a combined $3,000, effectively penalizing those who marry or attempt to save responsibly. These thresholds have not been adjusted since 1984.
The SSI Savings Penalty Elimination Act would raise these outdated asset limits to $10,000 for individuals and $20,000 for married couples, and permanently index them to inflation—allowing Americans to save without putting their essential benefits at risk.
“Raising the SSI asset limits is a smart, long-overdue reform that updates a critical program to reflect today’s economic realities. For over forty years, outdated restrictions have discouraged work and penalized those who try to save for their future. The SSI Savings Penalty Elimination Act modernizes these limits, ties them to inflation, and ensures that seniors and individuals with disabilities are not forced to choose between earning a paycheck and keeping the benefits they depend on. This bipartisan legislation promotes financial independence and strengthens the integrity of our safety net,” said Rep. Fitzpatrick.
“I am honored to join with my colleagues to champion the SSI Savings Penalty Elimination Act that would improve the lives of lower-income seniors and people with disabilities,” said Rep. Davis. “This bipartisan, bicameral bill would reform one of the most regressive, anti-savings measures in federal law by updating the outdated asset limits of the Supplemental Security Income program for the first time in almost 40 years. The necessity of this legislation is reflected in its support by over 200 businesses, faith-based groups, and organizations from across the political spectrum.”
“A $2,000 rainy-day fund doesn’t go as far as it did in 1989, but that’s all the savings that people who rely on SSI benefits are allowed,” said Senator Cortez Masto. “We shouldn’t punish people who are working hard, saving their money, and planning for the future. Congress must raise the SSI asset limit to help our seniors and Americans with disabilities.”
“Outdated rules are making disabled Americans pick between a better job and losing their safety net. That’s wrong,” said Dr. Cassidy. “Instead, let’s encourage work, help people save, and lift them out of poverty.”
“Every year, SSI’s outdated rules prevent Americans from being able to work, save, or marry the one they love,” said Senator Wyden. “This bipartisan bill gives Americans who are trying to make ends meet the chance to live independently without fear of being forced to forfeit an economic lifeline. As the Ranking Member of the Finance Committee, I am committed to making sure SSI is no longer stuck in yesteryear so every American can live with dignity and respect.”
A recent study by JPMorganChase highlights how current asset and income limits on federal benefits make it harder for people with disabilities to work part-time or build emergency savings. The SSI Savings Penalty Elimination Act directly addresses these challenges and removes long-standing barriers to financial stability.
The SSI Savings Penalty Elimination Act has the support of more than 200 businesses, faith-based groups, and organizations dedicated to improving the lives of older adults and people with disabilities, including: AARP, The Autism Society of America, The Aspen Institute Financial Security Program, The Jewish Federations of North America, Microsoft, The National Council on Aging, The National Council on Independent Living, the National Down Syndrome Congress, and the U.S. Chamber of Commerce.
“The U.S. Chamber of Commerce would like to thank Senators Cortez Masto and Cassidy and Representatives Davis and Fitzpatrick for their leadership in reintroducing the SSI Savings Penalty Elimination Act, which would help employers fill many open jobs with older, experienced American workers who wish to stay in the workforce by raising the current asset limits for Supplemental Security Income program eligibility,” said Chantel Sheaks, Vice President of Retirement Policy, U.S. Chamber of Commerce.
“The SSI Savings Penalty Elimination Act will update asset limits for Supplemental Security Income and remove outdated barriers that restrict economic opportunity and hinder workforce participation. We thank Senators Cortez Masto and Cassidy and Representatives Davis and Fitzpatrick, for championing this bipartisan legislation that will help broaden America’s workforce, bolster supply chains, and support disabled workers,” said Rylin Rodgers, Disability Policy Director, Microsoft.
“JPMorganChase, like many companies, wants to attract and retain the very best qualified people of all abilities. We applaud the bipartisan reintroduction of the SSI Savings Penalty Elimination Act, which would make common sense updates to the outdated rules for SSI benefits to reflect current economic conditions and keep pace with inflation,” said Bryan Gill, Global Head of the Office of Disability Affairs, JPMorganChase.
“BPC Action commends this effort by Sens. Cortez Masto (D-NV) and Cassidy (R-LA) and Representatives Davis (D-IL) and Fitzpatrick (R-PA) and urges Congress to act on long-overdue bipartisan measures to empower seniors and Americans with disabilities enrolled in Supplemental Security Income to increase their household savings,” said Michele Stockwell, President, Bipartisan Policy Center Action.
“SSI’s $2,000 asset limit has been frozen in time since 1989. In today’s economy, that means SSI beneficiaries can’t save for necessary expenses like a security deposit or car repairs without the risk of losing their benefits. There’s also an outdated and unjust marriage penalty baked into the SSI asset limit that cuts the amount of money beneficiaries are allowed to save by 25% if they marry the person they love. We strongly endorse the bipartisan SSI Savings Penalty Elimination Act because it will give Americans with disabilities more freedom to build the futures they want and deserve,” said Darcy Milburn, Director of Social Security and Healthcare Policy, The Arc of the United States.
“SSI’s outdated asset limits have prevented older Americans and those with disabilities from being able to save even a small amount for an emergency or to have a modicum of economic security as they age, without the risk of losing vital benefits. Americans should not be prevented from saving a few dollars for unforeseen circumstances, and SSI beneficiaries are no exception. It is long-past time for Congress to update SSI’s asset limits, which have become overly restrictive and prevent the accumulation of even a small amount of personal savings. AARP therefore urges Congress to pass your SSI Savings Penalty Elimination Act as soon as possible,” said Bill Sweeney, Senior Vice President, AARP Government Affairs.
“A core component of the nation’s Social Security system, SSI is nothing short of a lifeline for more than 7 million of the nation’s poorest seniors and disabled people, including more than one million disabled children. But because it’s been left to wither on the vine for decades, with key eligibility criteria never updated even for inflation, outdated savings limits now trap millions in poverty — even though SSI was established to offer a pathway out. Senators Cortez Masto, Cassidy, and Wyden and Reps. Davis and Fitzpatrick are to be commended for their bipartisan leadership on the SSI Savings Penalty Elimination Act — important legislation that would bring long overdue reform to one of the most regressive anti-savings policies on the books today. Even at a time of historic polarization, updating SSI’s asset limits is one issue Americans across the political spectrum can agree on — and the time is now to act,” said Rebecca Vallas, CEO, National Academy of Social Insurance.
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