Rule2024-08364
Expand the Definition of a Public Assistance Household
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 19, 2024
Effective
September 30, 2024
Issuing agencies
Social Security Administration
Abstract
We are finalizing our proposed rule to expand the definition of a public assistance (PA) household for purposes of our programs, particularly the Supplemental Security Income (SSI) program, to include the Supplemental Nutrition Assistance Program (SNAP) as an additional means-tested public income-maintenance (PIM) program. We are also revising the definition of a PA household from a household in which every member receives some kind of PIM payment to a household that has both an SSI applicant or recipient, and at least one other household member who receives one or more of the listed PIM payments (the any other definition). If determined to be living in a PA household, inside in-kind support and maintenance (ISM) would no longer need to be developed. The final rule will decrease the number of SSI applicants and recipients charged with ISM from others within their household. In addition, we expect this rule to decrease the amount of income we would deem to SSI applicants and recipients because we will no longer deem as income from ineligible spouses and parents who live in the same household: the value of the SNAP benefits that they receive; any income that was counted or excluded in figuring the amount of that payment; or any income that was used to determine the amount of SNAP benefits to someone else. These policy changes reduce administrative burden for low-income households and SSA.
Full Text
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<title>Federal Register, Volume 89 Issue 77 (Friday, April 19, 2024)</title>
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[Federal Register Volume 89, Number 77 (Friday, April 19, 2024)]
[Rules and Regulations]
[Pages 28608-28622]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-08364]
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SOCIAL SECURITY ADMINISTRATION
20 CFR Part 416
[Docket No. SSA-2023-0015]
RIN 0960-AI81
Expand the Definition of a Public Assistance Household
AGENCY: Social Security Administration.
ACTION: Final rule.
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SUMMARY: We are finalizing our proposed rule to expand the definition
of a public assistance (PA) household for purposes of our programs,
particularly the Supplemental Security Income (SSI) program, to include
the Supplemental Nutrition Assistance Program (SNAP) as an additional
means-tested public income-maintenance (PIM) program. We are also
revising the definition of a PA household from a household in which
every member receives some kind of PIM payment to a household that has
both an SSI applicant or recipient, and at least one other household
member who receives one or more of the listed PIM payments (the any
other definition). If determined to be living in a PA household, inside
in-kind support and maintenance (ISM) would no longer need to be
developed. The final rule will decrease the number of SSI applicants
and recipients charged with ISM from others within their household. In
addition, we expect this rule to decrease the amount of income we would
deem to SSI applicants and recipients because we will no longer deem as
income from ineligible spouses and parents who live in the same
household: the value of the SNAP benefits that they receive; any income
that was counted or excluded in figuring the amount of that payment; or
any income that was used to determine the amount of SNAP benefits to
someone else. These policy changes reduce administrative burden for
low-income households and SSA.
[[Page 28609]]
DATES: This final rule will be effective September 30, 2024.
FOR FURTHER INFORMATION CONTACT: Tamara Levingston, Office of Income
Security Programs, 6401 Security Blvd., Robert M. Ball Building, Suite
2512B, Woodlawn, MD 21235, 410-966-7384.
For information on eligibility or filing for benefits, call our
national toll-free number, 1-800-772-1213, or TTY 1-800-325-0778, or
visit our internet site, Social Security Online, at <a href="https://www.ssa.gov">https://www.ssa.gov</a>.
SUPPLEMENTARY INFORMATION:
Background
The SSI program provides monthly payments to: (1) adults and
children with a disability or blindness; and (2) people aged 65 and
older who have little or no income and resources. Eligible individuals
must meet all the requirements in the Social Security Act (Act),
including having resources and income below specified amounts.\1\
Generally, the more income an individual has, the less their SSI
payment will be. Under the SSI program, resources are cash or other
liquid assets or any real or personal property that an individual (or
spouse, if any) owns and could convert to cash to be used for their
support and maintenance.\2\ Income, on the other hand, is anything the
SSI applicant or recipient receives in cash or in-kind that can be used
to meet food and shelter needs.\3\ Applicants' and recipients'
resources may affect their SSI eligibility, while their income may
affect both their SSI eligibility and payment amounts.
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\1\ See 42 U.S.C. 1382 and 20 CFR 416.202 for a list of the
eligibility requirements. See also 20 CFR 416.420 for general
information on how we compute the amount of the monthly payment by
reducing the benefit rate by the amount of countable income as
calculated under the rules in subpart K of 20 CFR part 416.
\2\ 20 CFR 416.1201(a).
\3\ 20 CFR 416.1102. See also 20 CFR 416.1103 for examples of
items that are not considered income.
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Once an applicant is found eligible for SSI, their monthly payment
is determined by subtracting countable monthly income from the Federal
benefit rate (FBR), which is the monthly maximum Federal SSI
payment.\4\ The FBR for 2024 is $943 for an individual and $1,415 for
an eligible individual with an eligible spouse.\5\ The Act and our
regulations \6\ define income as ``earned,'' such as wages from work,
and ``unearned,'' such as gifted cash or ISM.\7\
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\4\ See 20 CFR 416.405 through 416.415. Some States supplement
the FBR amount.
\5\ 88 FR 72803, 72804 (2023). A table of the monthly maximum
Federal SSI payment amounts for an eligible individual, and for an
eligible individual with an eligible spouse, is available at <a href="https://www.ssa.gov/oact/cola/SSIamts.html">https://www.ssa.gov/oact/cola/SSIamts.html</a>. When the FBR is adjusted for
the cost of living, the amount of the potential ISM reduction
adjusts accordingly.
\6\ See 42 U.S.C. 1382a; 20 CFR 416.1102 through 416.1124.
\7\ See 20 CFR 416.1104.
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ISM
As indicated above, income that affects an individual's monthly SSI
payment can be provided in cash or in-kind. We calculate ISM
considering any shelter that is given to the individual or that the
individual receives because someone else pays for it.\8\ For example,
if an applicant or recipient lives with their sibling and does not pay
rent, we would consider the shelter that their sibling provides to be
ISM.
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\8\ See 20 CFR 416.1130(b).
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Like other forms of income, ISM can reduce the amount of a
recipient's monthly SSI payment. For example, we reduce the SSI monthly
payment by one-third of the FBR if an individual is living in another
person's household, receives shelter from others living in the
household, and others within the household pay for or provide the
individual with all of the individual's meals.\9\
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\9\ See 20 CFR 416.1130(b)(2).
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Additional circumstances regarding ISM are discussed further in our
regulations.\10\
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\10\ See 20 CFR 416.1130 through 416.1148.
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Deeming Income
In addition to counting ISM that an applicant or recipient
receives, the SSI program deems income of certain individuals to the
SSI applicant or recipient.\11\ ``Deeming'' is the process of
considering a portion of another person's income to be the income of an
SSI applicant or recipient.\12\ When our deeming rules apply, it does
not matter whether the other person's income is actually available to
the applicant or recipient.\13\ In determining an SSI applicant's or
recipient's eligibility and payment amount, we consider both the SSI
applicant's or recipient's own income as well as any relevant deemed
income from others. For example, when a child who is applying for or
receiving SSI lives with a parent who is ineligible for SSI, we deem a
portion of that parent's income to the child through the month in which
the child reaches age 18.\14\ Likewise, when an adult who is applying
for or receiving SSI lives with a spouse who is ineligible for SSI, we
deem a portion of the ineligible spouse's income to the applicant or
recipient.\15\ We look at the deemor's income to see if we must deem a
portion of it to the applicant or recipient because we expect the
deemor, based on their relationship with the SSI applicant or
recipient, to use some of their income to take care of (some of) the
applicant's or recipient's needs. Ultimately, only some of the deemor's
income is assigned to the SSI applicant or recipient.
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\11\ See 42 U.S.C. 1382c(f); 20 CFR 416.1160.
\12\ See 20 CFR 416.1160.
\13\ See 20 CFR 416.1160, 416.1161.
\14\ See 20 CFR 416.1165.
\15\ See 20 CFR 416.1163.
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Some income from ineligible parents and spouses is not deemed to
the SSI applicant or recipient. For example, our policy excludes from
deeming: the amount of any PIM payments the ineligible parents and
spouses receive under the programs listed in the PA household
definition; \16\ any income that those programs counted or excluded in
determining the amount of the PIM payments they received; and any
income of the ineligible spouse or parent that is used by a PIM program
to determine the amount of that program's benefit to someone else.\17\
For example, if an ineligible spouse or parent receives Temporary Aid
for Needy Families (TANF) assistance based on their income of $400 per
month, we do not consider the TANF benefit amount or the $400 in our
income determination for the SSI applicant or recipient. This is based
on the premise that the income used to demonstrate eligibility for a
PIM program and the PIM payment itself are required for that
individual's own needs.
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\16\ See 20 CFR 416.1142(a).
\17\ See 20 CFR 416.1161(a)(2) and (3).
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Prior Policy
We previously defined a PA household as one in which every member
receives a PIM payment under at least one of the following:
1. Title IV-A of the Social Security Act (Temporary Assistance for
Needy Families or TANF);
2. Title XVI of the Social Security Act (Supplemental Security
Income or SSI);
3. The Refugee Act of 1980 (payments based on need);
4. The Disaster Relief and Emergency Assistance Act;
5. General assistance programs of the Bureau of Indian Affairs;
6. State or local government assistance programs based on need (tax
credits or refunds are not assistance based on need); and
7. Department of Veterans Affairs program (payments based on
need).\18\
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\18\ 20 CFR 416.1142(a) (prior version).
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New Policy
We are making changes based on the Commissioner of Social
Security's
[[Page 28610]]
rulemaking authority specified in sections 205(a), 702(a)(5),
1631(d)(1), 1631(e)(1)(A), and 1633(a) of the Social Security Act.
Under those sections, the Commissioner may adopt rules regarding, among
other things, the nature and extent of evidence needed to establish
benefit eligibility, as well as methods of taking and furnishing such
evidence.
We are finalizing three changes discussed in the Notice of Proposed
Rulemaking (NPRM) that we published on September 29, 2023.\19\ First,
we are finalizing a minor clarification to our definition of a PA
household at 20 CFR 416.1142(a). The term ``public assistance'' may
have implications outside our programs. We are finalizing, without
change from the NPRM, the clarification that our definition of ``public
assistance household,'' which we use as a term of art, applies only for
purposes of our programs. Second, we are finalizing, without change
from the NPRM, our proposed revision to the definition of a PA
household in 20 CFR 416.1142(a) of adding SNAP to the existing list of
PIM programs.\20\ Third, we are changing our 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. If determined to be living in a PA household, inside ISM
would no longer need to be developed. We discussed this potential
change (from every to any other) in the NPRM and invited public
comment; public commenters were largely supportive of the change.\21\
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\19\ 88 FR 67148.
\20\ For more information on SNAP, visit <a href="https://www.fns.usda.gov/snap/supplemental-nutrition-assistance-program">https://www.fns.usda.gov/snap/supplemental-nutrition-assistance-program</a>.
\21\ In the NPRM, we referred to this potential change as from
every to any other. In this final rule, we are adopting that
proposed change but, for purposes of clarification, have slightly
modified the new language defining a PA household in 20 CFR
416.1142(a), such that the any other language is no longer used.
Because the substance of the new definition is the same as the any
other proposal, we continue to refer to the new definition as the
any other definition throughout this final rule.
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In the event of an invalidation of any part of this rule, our
intent is to preserve the remaining portions of the rule to the fullest
possible extent. Each of the three changes can be implemented
independently of the others, and we intend each of the three changes to
be severable from the others. The addition of SNAP to our list of PIM
programs in 20 CFR 416.1142(a) is independent of our adoption of the
any other definition--adding SNAP could be implemented separately even
if we did not adopt the any other definition. Likewise, expanding our
definition of a PA household by adopting the any other definition could
be fully implemented whether or not SNAP is added to the list of PIM
programs in 20 CFR 416.1142(a). The clarification that our definition
of ``public assistance household'' is a term of art that applies only
for purposes of our programs is a minor administrative clarification
that is not contingent on the implementation of the two ways in which
we are expanding the definition of a PA household with this final rule.
If any of these three changes were to be invalidated, the others could
still be implemented fully, as these changes relate to three separate
aspects of the PA household policy.
During the development of the NPRM, we considered other programs
which are often considered means-tested programs, including
Medicaid,\22\ the Low Income Home Energy Assistance Program
(LIHEAP),\23\ the Special Supplemental Nutrition Program for Women,
Infants, and Children (WIC),\24\ the Housing Choice Voucher
Program,\25\ Project Based Rental Assistance, and Public Housing \26\
which we discussed in the ``Rationale for the Proposed Policy'' in the
NPRM.\27\ At this time, we have decided to add SNAP with this expansion
and continue to explore adding other programs in the future.
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\22\ For more information on Medicaid, visit <a href="https://www.medicaid.gov/">https://www.medicaid.gov/</a>.
\23\ For more information on LIHEAP, visit <a href="https://www.acf.hhs.gov/ocs/low-income-home-energy-assistance-program-liheap">https://www.acf.hhs.gov/ocs/low-income-home-energy-assistance-program-liheap</a>.
\24\ For more information on WIC, visit <a href="https://www.fns.usda.gov/wic">https://www.fns.usda.gov/wic</a>.
\25\ For more information on the Housing Choice Voucher Program,
visit <a href="https://www.hud.gov/hcv">https://www.hud.gov/hcv</a>.
\26\ For more information on Public Housing, visit <a href="https://www.hud.gov/program_offices/public_indian_housing/programs/ph">https://www.hud.gov/program_offices/public_indian_housing/programs/ph</a>.
\27\ 88 FR 67148, 67151.
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SNAP provides nutrition benefits via an Electronic Benefit Transfer
(EBT) card, which can be used to buy groceries at authorized food
stores and retailers.\28\ Everyone who lives together and purchases and
prepares meals together is grouped together as one SNAP household; and,
in most cases, the household must meet both gross and net income
limits, which vary with household size, for the household to be
eligible for and receive SNAP benefits.\29\ If everyone in the SNAP
household is receiving TANF and/or SSI, the household may be deemed
``categorically eligible'' for SNAP because they have already been
determined eligible for another means-tested program.\30\ SNAP benefits
meet the definition of income in our regulations.\31\ However, SNAP
benefits are excluded from our income counting based on Federal
statute.\32\ Because our policy links the types of PIM payments listed
in 20 CFR 416.1142(a) with the income of ineligible spouses and parents
that is excluded from deeming under 20 CFR 416.1161(a)(2)-(3), adding
SNAP to the list of PIM programs will decrease the amount of income
that is deemed to SSI applicants and recipients. If an SSI-ineligible
spouse or parent is receiving SNAP benefits, the value of the SNAP
benefit, as well as any income that was counted or excluded in figuring
the amount of the SNAP benefits, would not be deemed to the SSI
applicant or recipient. In addition, any income of the ineligible
spouse or parent that is used to determine the amount of SNAP benefits
to someone else would not be deemed to the SSI applicant or recipient.
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\28\ See ``How do I receive SNAP benefits?'' available at
<a href="https://www.fns.usda.gov/snap/recipient/eligibility">https://www.fns.usda.gov/snap/recipient/eligibility</a>.
\29\ See ``Who is in a SNAP household?'' and ``What are the SNAP
income limits?'' available at: <a href="https://www.fns.usda.gov/snap/recipient/eligibility">https://www.fns.usda.gov/snap/recipient/eligibility</a>.
\30\ See ``What are the SNAP income limits?'' available at:
<a href="https://www.fns.usda.gov/snap/recipient/eligibility">https://www.fns.usda.gov/snap/recipient/eligibility</a>.
\31\ See 20 CFR 416.1102.
\32\ 7 U.S.C. 2017(b); see also 20 CFR 416, Subpart K, Appendix
(I)(a).
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We also discussed and invited public comment on broadening our
definition of a PA household from one in which every member receives a
PIM payment to one in which any member other than the SSI applicant or
recipient receives a PIM payment. We have decided to adopt this change.
Thus, under our new definition of PA household, if there is an SSI
applicant or recipient in a household where at least one other member
receives one or more of the listed PIM payments, the household will be
considered a PA household, and we will not develop for inside ISM.\33\
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\33\ ``Inside ISM'' is ISM that is provided to the SSI applicant
or recipient from others within the same household in which the
applicant or recipient is living. See POMS SI 00835.465.B.; see also
POMS SI 00835.515. In contrast, ``[w]hen a person who is not a
household member pays a vendor directly for any of the household's
costs or provides the household with [ISM] for less than the current
market value (CMV),'' we consider this ``outside ISM.'' See POMS SI
00835.465.C.; see also POMS SI 00835.515. ISM that is neither
inside, nor outside--such as ISM provided to only one person in the
household--is considered ``other ISM.'' See POMS SI 00835.630.E.
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As we discussed in the NPRM, the previous definition of PA
household (requiring every member to receive a PIM payment) may have
disadvantaged individuals in low-income households where household
members still needed their income (and resources) to meet their own
needs but where a household member was not receiving a PIM payment for
reasons unrelated to need.
[[Page 28611]]
For example, college students, who do not meet a student exception for
SNAP, may not receive SNAP benefits even though the rest of the
household does.\34\ In such circumstances, under our previous
definition of PA household, the household would not qualify. But under
the expanded definition of PA household that we are adopting, the
household would not be disqualified as a PA household simply because
one member was not receiving a PIM payment. In fact, many commenters
supported the change we are now adopting based on their experiences,
under the previous definition, of households that did not qualify for
reasons unrelated to need.\35\
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\34\ See <a href="https://www.fns.usda.gov/snap/students">https://www.fns.usda.gov/snap/students</a>.
\35\ See public comments in the rulemaking docket at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, under the docket SSA-2023-0015. Examples
include Center on Budget and Policy Priorities; Justice in Aging;
The Legal Aid Society; and Community Legal Service of Philadelphia.
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Additionally, when we first established the PA household rule in
1980, we explained that our rule ``relied on the fact that other
agencies have determined that these individuals [receiving PIM
payments] need all their income for their own needs.'' \36\ Because
SNAP and several of the other PIM programs listed in our PA household
definition provide, or may provide, benefits at the household (or
family) level instead of the individual level (e.g., TANF, Refugee Act
of 1980, Disaster Relief and Emergency Assistance Act, and general
assistance programs of the Bureau of Indian Affairs), we note that in
many circumstances a needs-based determination has been made for other
household members. We discuss further justification for the change
(from every member to any other member) in the Comments Summary section
below.
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\36\ 45 FR 65542, <a href="https://www.federalregister.gov/citation/45-FR-65542">https://www.federalregister.gov/citation/45-FR-65542</a>.
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Comments Summary
We received 221 public comments on our NPRM from September 29
through November 29, 2023. Of the total comments, 219 are available for
public viewing at <a href="https://www.regulations.gov/document/SSA-2023-0015-0001">https://www.regulations.gov/document/SSA-2023-0015-0001</a>.\37\ These comments were from:
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\37\ We excluded two comments. One comment was identical from
the same commenter, and one was a partial submission that was
missing pages that was resubmitted by the commenter for
completeness.
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<bullet> Individuals; and
<bullet> Advocacy groups, such as the National Organization of
Social Security Claimants' Representatives and the National Association
of Disability Representatives.
We carefully considered the public comments we received. More than
95 percent of commenters supported the proposals in the NPRM to add
SNAP and to adopt the change from every member to any other member,
meaning 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. Some commenters agreed with the overarching proposals but
recommended amendments. Other commenters asked questions and offered
opinions on the potential financial and legal implications of the
proposals. A few commenters disagreed with the proposals altogether.
We received some comments that were outside the scope of this
rulemaking because they did not relate to our proposals either to add
SNAP to our list of PIM programs or to change our definition from every
member to any other member. Even though outside the scope, we address
some of these other comments where they related to ISM more generally
because a response might help the public understand our program better.
The next section summarizes and responds to the public comments.
Comments and Responses
General Support
Comment: Many commenters broadly supported, and encouraged us to
quickly finalize and implement, adding SNAP to the list of PIM programs
in our definition of a PA household.
Response: We acknowledge and appreciate the support for that
change.
Comments Regarding Scope of Change
Comment: Many commenters supported the proposed change in the PA
household definition from one in which every member receives some kind
of PIM payments to one that has both an SSI applicant or recipient, and
at least one other household member who receives one or more of the
listed PIM payments. Some commenters stated that the any other proposal
would simplify our processing of SSI claims, save time, and increase
the speed with which we serve applicants and recipients. Some
commenters noted that some SNAP households face barriers to SNAP
enrollment for all household members, including households with:
college students who do not meet a student exemption for SNAP;
individuals with Able-Bodied Adults Without Dependent (ABAWD) status
who are otherwise eligible for SNAP, but who are generally limited to
no more than three months of SNAP benefits within a three-year period
if they are not meeting certain work requirements or they do not
qualify for an exception; and households with mixed immigration
status.\38\ These commenters stated that such households, where some,
but not all, members may be eligible for SNAP, would not benefit from
the addition of SNAP to our list of PIM programs unless we adopted the
any other proposal. In support of this point, commenters stated that
the change to any other member would be consistent with Executive Order
(E.O.) 13985.\39\
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\38\ For additional details on USDA/FNS's policy regarding
families with mixed immigration status, see <a href="https://www.fns.usda.gov/snap/eligibility/citizen/non-citizen-policy">https://www.fns.usda.gov/snap/eligibility/citizen/non-citizen-policy</a>.
\39\ Executive Order 13985. Advancing Racial Equity and Support
for Underserved Communities Through the Federal Government. January
20, 2021. Available at: <a href="https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government">https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government</a>.
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One commenter objected to the examination and discussion of the any
other proposal because they want further analysis and justification of
the change. The commenter suggested that such a change should be
explored through an Advance Notice of Proposed Rulemaking.
Response: We carefully considered the comments on the any other
proposal and have decided to adopt the any other change in this final
rule.
First, the commenters cited examples of how requiring every member
of the household to receive a PIM payment has disadvantaged individuals
in low-income households under the previous definition when there was a
household member who did not receive a PIM payment for reasons
unrelated to need. We found these examples to be persuasive. The
commenters noted, for example, that SNAP and TANF restrict certain
individuals in the household from receiving benefits even if their
income is used to determine the household's eligibility for the
benefits.\40\ Specifically, several commenters \41\ pointed out that
some members of a household are not eligible to receive SNAP because of
their immigration
[[Page 28612]]
status, even if they would otherwise qualify for SNAP benefits based on
their income (or need).\42\ In such a case, under the previous policy,
although the SSI recipient lives in a household where all but one of
the other members are receiving SNAP, we would not have considered this
a PA household because not every member of the household was receiving
a PIM payment. As a result, we may have treated the SSI recipient as
receiving inside ISM and would have reduced their benefit despite the
fact that the household was still sufficiently low income to qualify
everyone in the household for the PIM payments based on financial need.
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\40\ For example, adults who have exceeded eligibility time
limits and certain non-citizens are not eligible to receive TANF,
even if their income is used to determine a household's eligibility
for TANF benefits. See ``Characteristics and Financial Circumstances
of TANF Recipients Fiscal Year (FY) 2021,'' available at <a href="https://www.acf.hhs.gov/sites/default/files/documents/ofa/fy2021_characteristics.pdf">https://www.acf.hhs.gov/sites/default/files/documents/ofa/fy2021_characteristics.pdf</a>.
\41\ Comments are available to the public at <a href="https://www.regulations.gov">https://www.regulations.gov</a>. Search for docket ``SSA-2023-0015.'' See
comments from: National Organization of Social Security Claimants'
Representatives (NOSSCR); California Association of Food Banks
(CAFB); Californians for SSI (CA4SSI); Center on Budget and Policy
Priorities (CBPP); Justice in Aging; and the Legal Aid Society.
\42\ See ``Are non-citizens eligible for SNAP?'' at <a href="https://www.fns.usda.gov/snap/recipient/eligibility">https://www.fns.usda.gov/snap/recipient/eligibility</a>.
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Second, for households with an SSI applicant or recipient and at
least one other member who receives means-tested PIM payments, we find
it reasonable to conclude that members of the household likely would
not be able to provide the SSI applicant or recipient with inside ISM.
This conclusion is supported by the data we have about the composition
of households that receive the types of PIM payments covered by our PA
household policy. This data generally shows that individuals eligible
for PIM payments live in low-income households. For example:
<bullet> The average monthly income for TANF households is $958 (or
under $12,000 annually). These income levels indicate that if someone
in a household is receiving TANF, the entire household is likely to be
low income.\43\
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\43\ See Table 40 (``TANF Recipient Families by Receipt of Non-
TANF Income: FY 2021), available at <a href="https://www.acf.hhs.gov/ofa/data/characteristics-and-financial-circumstances-tanf-recipients-fiscal-year-2021">https://www.acf.hhs.gov/ofa/data/characteristics-and-financial-circumstances-tanf-recipients-fiscal-year-2021</a>.
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<bullet> In 2014, a study showed that families who receive public
assistance are significantly lower income than families who do not,
with annual incomes averaging $33,549 for a family of four who receive
at least one form of public assistance versus $74,597 for a family of
four who do not receive any assistance.\44\
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\44\ See Program participation and spending patterns of families
receiving government means-tested assistance: Monthly Labor Review:
U.S. Bureau of Labor Statistics, available at <a href="https://www.bls.gov/opub/mlr/2018/article/program-participation-and-spending-patterns-of-families-receiving-means-tested-assistance.htm">https://www.bls.gov/opub/mlr/2018/article/program-participation-and-spending-patterns-of-families-receiving-means-tested-assistance.htm</a>.
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<bullet> 70 percent of SSI recipients live in households with
family incomes below $30,000, including income from assistance
benefits.\45\
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\45\ Messel and Trenkamp. 2022. ``Characteristics of
Noninstitutional DI, SSI, and OASI Program Participants 2016
Update.'' Research and Statistics Note No. 2022-01. Washington, DC:
SSA. Available at: <a href="https://www.ssa.gov/policy/docs/rsnotes/rsn2022-01.html">https://www.ssa.gov/policy/docs/rsnotes/rsn2022-01.html</a>.
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<bullet> In FY 2020, 81 percent of SNAP households had gross
monthly income less than or equal to the poverty line.\46\
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\46\ See USDA FNS. 2022. Characteristics of U.S. Department of
Agriculture's Supplemental Nutrition Assistance Program Households:
Fiscal Year 2020. Available at <a href="https://fns-prod.azureedge.us/sites/default/files/resource-files/Characteristics2020-Summary.pdf">https://fns-prod.azureedge.us/sites/default/files/resource-files/Characteristics2020-Summary.pdf</a>.
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<bullet> An analysis of families receiving multiple public benefits
(but not necessarily where every member received some form of public
assistance) found that higher levels of benefit receipt are associated
with lower income, earnings, and employment, and greater material
hardship.\47\
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\47\ Edelstein, Pergamit, and Ratcliffe. 2014. Characteristics
of Families Receiving Multiple Public Benefits. The Urban Institute.
Available at <a href="https://www.urban.org/sites/default/files/publication/22366/413044-Characteristics-of-Families-Receiving-Multiple-Public-Benefits.PDF">https://www.urban.org/sites/default/files/publication/22366/413044-Characteristics-of-Families-Receiving-Multiple-Public-Benefits.PDF</a>.
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<bullet> A 2013 study found that about 25 percent of SSI recipients
lived in a household where the total family income was below 100
percent of the applicable family poverty threshold, even though the
household contained at least one member who was not receiving PIM
payments. This was true regardless of whether the SSI recipients were
individuals/couples or noncouple multi-recipient.\48\
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\48\ Nicholas. 2013. Prevalence, Characteristics, and Poverty
Status of Supplemental Security Income Multirecipients. Social
Security Bulletin, Vol. 73, No. 3. Washington, DC: SSA. Available at
<a href="https://www.ssa.gov/policy/docs/ssb/v73n3/v73n3p11.html">https://www.ssa.gov/policy/docs/ssb/v73n3/v73n3p11.html</a>.
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<bullet> The 2019 Survey of Income and Program Participation found
that in households that receive both TANF and SSI, 85.7 percent (+/-
8.4 percent) have incomes less than 200 percent of the Federal poverty
rate, even after all transfers (that is, including the income the
household receives from all sources of cash public assistance
payments).\49\
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\49\ We selected the 2019 (reference year 2018) SIPP survey
because it had the largest sample size of pre-COVID 19 SIPP surveys.
U.S. Census Bureau. 2019. Survey of Income and Program
Participation. Available at <a href="https://www.census.gov/library/visualizations/interactive/social-safety-net-benefits.html">https://www.census.gov/library/visualizations/interactive/social-safety-net-benefits.html</a>. The most
recent SIPP survey found that 61.2 percent (+/- 21.4 percent) of
these same households had incomes less than 200 percent of the
Federal poverty rate. The 2021 SIPP is inclusive of COVID-era
stimulus payments and other transfer programs that no longer exist.
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<bullet> Lastly, related to the policy to add SNAP to the list of
PIM programs, among households receiving SSI in 2021, 64.7 percent also
qualified for and received SNAP.\50\
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\50\ U.S. Census Bureau. 2022. Who Is Receiving Social Safety
Net Benefits? available at <a href="https://www.census.gov/library/stories/2022/05/who-is-receiving-social-safety-net-benefits.html">https://www.census.gov/library/stories/2022/05/who-is-receiving-social-safety-net-benefits.html</a>.
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Third, as discussed above and in our NPRM, SNAP and several other
listed PIM programs provide, or may provide, household-level (or
family-level) benefits (e.g., TANF, Refugee Act of 1980, Disaster
Relief and Emergency Assistance Act, and General assistance programs of
the Bureau of Indian Affairs). This means a government agency has
already determined that a household's income is sufficiently low such
that the household is in need of public assistance. Based on that
finding, it is reasonable for us to conclude that household members
require their own income (and resources) to meet their own needs.
Finally, regarding the suggestion that we explore whether to adopt
the any other definition through an ANPRM, we used the NPRM to explore
this option. In the NPRM, we discussed the possible policy change,
examined evidence that supported the change, invited public comment
specifically on the proposed change, and included an estimate and cost
analysis from our Office of the Chief Actuary (OCACT) over the fiscal
years 2024 to 2033. The OCACT estimate projected SSI payments, and
estimated changes for both recipients and new individuals who will be
eligible under the revised any other definition that would not have
been eligible under our previous rules.
Comment: Some commenters encouraged us to go beyond the any other
proposal and change the definition of a PA household to refer simply to
any member, including the SSI applicants or recipients themselves.
Response: Under the commenters' alternative proposal, every SSI
recipient would live in a PA household and, thus, would be considered
not to be receiving ISM from other members of the household (i.e.,
inside ISM). We do not think that result would be supportable because
it would mean that we would never apply the one-third reduction (VTR)
rule,\51\ which is based on a provision in the Social Security Act.\52\
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\51\ See 20 CFR 416.1131; POMS SI 00835.200.
\52\ See 42 U.S.C. 1382a(a)(2)(A).
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Comment: Many commenters encouraged us to expand the definition of
PA household to include additional programs, whether in this final rule
or in a future rulemaking, including: Medicaid; LIHEAP and similar
energy assistance programs; housing assistance from the Department of
Housing and Urban Development (HUD); WIC; CHIP; and the earned income
tax credit (EITC).
Response: As we discussed in the NPRM,\53\ this is our first
expansion of the definition of a PA household since 1980, when the
policy was first established. Therefore, we decided to add SNAP
initially and will consider other programs in the future; our
[[Page 28613]]
choosing not to do so now does not preclude adding other programs via
future rulemaking. As discussed in our NPRM, SNAP recipients have been
determined to be low-income and, therefore, need their income (and
resources) to take care of their own needs, which is consistent with
the rationale underlying our policy when it was first established.\54\
The other programs cited by the commenter do not align as easily with
the criteria we used. For example, while the benefits of the EITC are
concentrated among low-income households, some moderate-income
taxpayers are eligible for a small credit, including taxpayers with
three or more children earning up to $63,398 and with up to $11,000 in
investment income (in 2023). This demonstrates that the EITC does not
align with the underlying intent of our initially established PA
household policy to the extent that SNAP does.
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\53\ 88 FR 67152-67153.
\54\ 88 FR 67152.
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In addition, SNAP has several advantages over other programs that
we considered that make it the best fit for this first expansion of our
PA household definition. First, SNAP eligibility and receipt have
relatively low State variability because SNAP is a nationwide program
with relatively uniform eligibility standards. In general, net monthly
income limits for SNAP eligibility are set at 100 percent of the
poverty level.\55\ In contrast, Medicaid, for example, has varying
income limits based on an individual's State of residence.\56\
Likewise, the upper eligibility levels for CHIP vary by State and range
widely,\57\ as do the types of CHIP programs and groups covered by
States. In contrast, the relative uniformity in SNAP eligibility
requirements makes this initial expansion of our PA household policy
more consistent and supportable.
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\55\ See ``What are the SNAP income limits?'' available at
<a href="https://www.fns.usda.gov/snap/recipient/eligibility">https://www.fns.usda.gov/snap/recipient/eligibility</a>. Note that
Alaska and Hawaii have separate, higher income eligibility standards
for the SNAP program.
\56\ <a href="https://www.medicaid.gov/medicaid/national-medicaid-chip-program-information/medicaid-childrens-health-insurance-program-basic-health-program-eligibility-levels/index.html">https://www.medicaid.gov/medicaid/national-medicaid-chip-program-information/medicaid-childrens-health-insurance-program-basic-health-program-eligibility-levels/index.html</a>
\57\ Id.
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Second, SNAP benefits are typically certified for relatively longer
periods than other government benefit programs. For example, many SNAP
participants are certified for 12 months, and older individuals and
individuals with disabilities may be certified for up to 24 or 36
months. In contrast, other programs with shorter or less predictable
benefit periods might require more frequent development of individuals'
living arrangements, which could be burdensome for recipients and our
staff. For example, LIHEAP benefits, which help low-income households
pay for heating or cooling, are typically seasonal, meaning that
eligibility can vary within a 12-month period.
Moreover, SNAP does not have a cap on enrollment, meaning those who
qualify or meet eligibility requirements receive benefits. This ensures
that we can include the entire SNAP-eligible population when we
determine what households qualify as PA households. In contrast,
programs like WIC, LIHEAP, and HUD housing are capped based on the
availability of resources, which means there are waiting lists for
those who are financially eligible and priority levels to receive
benefits.\58\ As we strive for uniformity across the SSI program, we
are concerned that including government benefit programs with
enrollment caps or waiting lists may lead to disparate treatment of
similarly situated SSI applicants and recipients.
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\58\ Dorn, Stan, et al. (2013). Overlapping Eligibility and
Enrollment: Human Services and Health Programs Under the Affordable
Care Act. The Urban Institute. <a href="https://aspe.hhs.gov/sites/default/files/private/pdf/76961/rpt_integrationproject.pdf">https://aspe.hhs.gov/sites/default/files/private/pdf/76961/rpt_integrationproject.pdf</a>.
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Finally, we note that SNAP participation overlaps to a great extent
with participation in other means-tested programs and, thus, by adding
SNAP to the definition of PA household, we anticipate that we will also
capture many of the individuals who receive benefits from other means-
tested programs. We would like to observe how adding SNAP to the PA
household definition affects the SSI population before we determine
whether to add additional programs, and if so, which programs.
Despite the considerations cited above, we are not precluding
adding other programs to the list of PIM payments in our PA Household
definition. As well, changes to the programs discussed here might also
cause us to reconsider them for inclusion on the list. Expanding the
definition of PA household to include additional programs would require
further, program-specific consideration.
Use of Data Sharing To Implement New Policy
Comment: One commenter encouraged us to proactively recalculate
benefits for existing recipients based on this new rule, rather than
waiting until the recipients' next scheduled redetermination. The
commenter wanted us to do this to ensure recipients received the
benefit of the new policy as soon as possible. The commenter also
stated that this process of proactive recalculation could be simplified
by utilizing data we already receive through existing data matches. The
commenter further stated that ``SSA should conduct Limited Issue
reviews of all VTR and ISM records in order to comply with the new
rules, as well as of all claims denied in the previous twelve months to
identify erroneously denied applicants.''
Similarly, many commenters, in their support for finalizing the
proposed rule, encouraged us to expand or implement data sharing
agreements with State SNAP administrators across the country. They
advocated that expanded data sharing with SNAP administrators would be
an improvement over using redeterminations to identify and correct
``over-reduction'' of payment and ineligibility decisions.
Response: We acknowledge and share the commenter's desire to ensure
existing recipients receive the benefit of the new PA household policy
as soon as possible. However, due to limited resources it is not
administratively feasible to conduct Limited Issue reviews of all the
VTR and ISM records. Further, this final rule does not apply to any
claims denied before its effective date.
Expanding or implementing data sharing agreements with States
across the country would involve several important considerations that
are outside the scope of this rulemaking, including the interest,
capacity, and requirements of the States. We have an established
process for data exchanges that we follow to implement any data
exchange, including establishing the agreements. We currently have 174
data sharing agreements with States/State agencies under which we
provide data for the State/State agency to determine entitlement and
eligibility for federally funded benefit programs, including Medicaid,
SNAP, and TANF.
Income From Family or Friends
Comment: One commenter expressed concern that our regulations that
deem income create a disincentive for SSI recipients to get married,
and implied tension or conflict with the Supreme Court's holding in
Obergefell v. Hodges,\59\ which holds that same-sex couples may not be
deprived of the fundamental right to marry.
---------------------------------------------------------------------------
\59\ 576 U.S. 644 (2015).
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Response: In general, deeming from a spouse is required by the
Social Security Act.\60\ In the context of this rulemaking, as we
explained in the NPRM, adding SNAP to our list of PIM programs will
``decrease the amount of
[[Page 28614]]
income we [will] deem to SSI applicants and recipients because we
[will] no longer deem income from ineligible spouses . . . who receive
SNAP benefits and live in the same household.'' There is no tension or
conflict between spouse-to-spouse deeming and the Supreme Court's
holding in Obergefell: spouse-to-spouse deeming applies equally to
opposite-sex couples and same-sex couples.
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\60\ 42 U.S.C. 1382c(f)(1).
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Comment: Several commenters made a broad suggestion to entirely
eliminate ISM because counting ISM discourages friends and family from
providing assistance to disabled loved ones, while one commenter
acknowledged that a statutory change would be required to eliminate
ISM.
Response: We acknowledge the commenters' desired policy change, but
as the one commenter stated, entirely removing ISM from our income
calculations would require a statutory change.\61\
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\61\ See 42 U.S.C. 1382a(a)(2)(A).
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Opposition to the Rule
Comment: One commenter opposed the proposed rulemaking because the
NPRM did not extensively discuss the distinctions in the definitions of
household composition for SSI and SNAP.
Response: This rulemaking does not change the definition of a
household for SSI purposes \62\ or for SNAP purposes.\63\ The commenter
did not explain how the distinctions in the household composition
definitions are relevant to our addition of SNAP, and we do not believe
that the distinctions preclude us from adding SNAP to our regulatory
list.
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\62\ SSA--POMS: SI 00835.020--Definitions of Terms Used in
Living Arrangements (LA) and In-Kind Support and Maintenance (ISM)
Instructions--8/2023. <a href="https://secure.ssa.gov/apps10/poms.nsf/lnx/0500835020">https://secure.ssa.gov/apps10/poms.nsf/lnx/0500835020</a>.
\63\ See ``Who is in a SNAP household?'' at SNAP Eligibility
[verbar] Food and Nutrition Service (<a href="http://usda.gov">usda.gov</a>). <a href="https://www.fns.usda.gov/snap/recipient/eligibility">https://www.fns.usda.gov/snap/recipient/eligibility</a>.
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Comment: One commenter asserted that because a federal food-stamp
program existed in 1980, when the PA household policy was first
created, the relative increase in SNAP participation since that time
does not sufficiently justify the change to include SNAP in the list of
PIM programs in our definition of a PA household. The commenter further
noted that ``the large increase in SNAP users and concurrent decline in
the poverty rate since 1980 . . . is not a relevant indication of
increased need.''
Response: When we first established the PA household policy in
1980, we explained that it was based on the idea that if the other
individuals in the household were receiving a PIM payment, they needed
their income (and resources) to meet their own needs. This meant they
could not support the SSI applicant or recipient because they had no
extra income (or resources) to share. The determination of need, made
by the applicable Federal or State agency providing the PIM payments,
supported the assumption that the others in the household could not
provide ISM to the SSI applicant or recipient. The fluctuations in the
overall poverty rate in the United States are not directly relevant to
whether the household members are able to provide ISM to the SSI
applicant or recipient. As we discussed in the NPRM, when the PA
household policy was first created in 1980, the list of PIM programs in
our definition of a PA household reflected the most widely used means-
tested public benefit programs at that time.\64\ The nationwide food-
stamp program began in 1974--just six years before the establishment of
the PA household policy--and had approximately 21.1 million
participants in 1980.\65\ In contrast, approximately 42.1 million
people receive SNAP benefits today,\66\ making SNAP now one of the most
widely used public benefit programs. As we discussed in the NPRM, we
have not updated our list of PIM programs for the PA household policy
since 1980, despite the significant shifts in the landscape of public
assistance programs since that time. SNAP recipients have been
determined to be low-income and, therefore, need their income (and
resources) to meet their own needs.\67\ Indeed, a USDA report from 2019
showed that approximately 80 percent of all SNAP households had gross
monthly income that was less than or equal to the Federal poverty
level.\68\
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\64\ See 88 FR 67151-52.
\65\ See Congressional Budget Office, ``The Food Stamp Program:
Eligibility and Participation,'' Nov. 1988, p. 2, available at
<a href="https://www.cbo.gov/sites/default/files/100th-congress-1987-1988/reports/88-cbo-0010.pdf">https://www.cbo.gov/sites/default/files/100th-congress-1987-1988/reports/88-cbo-0010.pdf</a>.
\66\ See USDA Food and Nutrition Service (FNS), SNAP Data
Tables, ``FY19 through FY23 National View Summary,'' Sept. 2023,
available at <a href="https://www.fns.usda.gov/pd/supplemental-nutrition-assistance-program-snap">https://www.fns.usda.gov/pd/supplemental-nutrition-assistance-program-snap</a>.
\67\ See 88 FR 67152.
\68\ See USDA, ``Characteristics of Supplemental Nutrition
Assistance Program Households: Fiscal Year 2019,'' March 2021,
Report No. SNAP-20-CHAR, available at: <a href="https://fns-prod.azureedge.us/sites/default/files/resource-files/Characteristics2019.pdf">https://fns-prod.azureedge.us/sites/default/files/resource-files/Characteristics2019.pdf</a>.
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Comment: One commenter opposed adding other programs, such as ``in-
kind assistance programs like food and medical care,'' that are not
cash assistance programs, to the programs listed in our definition of a
PA household. Further, the commenter asserted that we had taken an
inconsistent stance by calling our treatment of food ``insignificant''
in a different rulemaking \69\ but ``including SNAP . . . as
significant'' in this PA household rulemaking.
---------------------------------------------------------------------------
\69\ The commenter appears to be referring to the NPRM the
agency published on ``Omitting Food from In-Kind Support and
Maintenance.'' See 88 FR 9779 (Feb. 15, 2023).
---------------------------------------------------------------------------
Response: Regarding the commenter's statement that we should not
add in-kind assistance programs like food and medical care to our PA
household definition, we have determined that means-tested programs
largely have shifted over the last several decades from cash assistance
programs toward voucher-based or in-kind support programs. Because of
this shift over time, we have a reduced ability to effectively identify
the individuals we intended to serve under our PA household definition.
As we noted in the NPRM, SNAP benefits meet our definition of
income in 20 CFR 416.1102.\70\ The commenter's reference to our NPRM on
Omitting Food from In-Kind Support and Maintenance is generally outside
the scope of this rulemaking. However, we note that, contrary to the
commenter's assertion, we have not described food assistance as
``insignificant,'' nor is food assistance treated inconsistently under
the two rules. Here, we are adding SNAP benefits to the list of PIM
programs under the PA household policy. This change means that if the
household has both an SSI applicant or recipient, and at least one
other household member who receives SNAP benefits (or other PIM
payments listed in the PA household definition), we will not develop
inside ISM because we consider that the household is sufficiently low
income such that the members need all of their income (and resources)
to meet their own needs--they are not able to share with or provide ISM
to the SSI applicant or recipient. In contrast, under the final rule
Omitting Food from In-Kind Support and Maintenance, we removed food
from our calculations of ISM. More importantly, it is less accurate to
compare potentially partial, inconsistent food assistance that an
individual receives from family or friends with something like SNAP, a
Federal benefit one can only qualify for after demonstrating they do
not have enough income or resources to fulfill their own basic
nutrition needs.
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\70\ See 88 FR 67151.
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Comment: One commenter described the NPRM as incomplete because
there was ``no federalism, no distributional
[[Page 28615]]
analysis, no alternatives considered[.]'' The commenter also desired
estimates of costs from Medicaid, and other programs using an SSI
Financial Eligibility Model (FEM). The same commenter asserted that
data from the Survey of Income and Program Participation (SIPP) was
better for this rulemaking than the Current Population Survey (CPS)
data used in our proposed rule. The commenter asserted that CPS data
undercounts income and suggested our estimates might be incorrect.
Response: Regarding federalism, section 1(a) of E.O. 13132 defines
``policies that have federalism implications'' as ``refer[ring] to
regulations, legislative comments or proposed legislation, and other
policy statements or actions that have substantial direct effects on
the States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government.'' \71\ As stated in the NPRM and this
final rule, we analyzed the rule in accordance with the principles and
criteria established by E.O. 13132 and determined that the rule will
not have sufficient federalism implications to warrant the preparation
of a federalism assessment. As also stated in the NPRM and this final
rule, we also determined that the rule will not preempt any State law
or State regulation or affect States' abilities to discharge
traditional State governmental functions. We maintain that those
determinations are accurate, and the commenter did not give any reason
to believe they are not.
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\71\ See <a href="https://www.govinfo.gov/content/pkg/FR-1999-08-10/html/99-20729.htm">https://www.govinfo.gov/content/pkg/FR-1999-08-10/html/99-20729.htm</a>.
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As a matter of protocol, the estimates prepared by SSA's Office of
the Chief Actuary (OCACT) focus on the impact on SSA. The commenter is
incorrect in stating regarding the NPRM that ``no alternatives [were]
considered[.]'' For example, the reasons that we provided in support of
the proposal, particularly in the ``Rationale for the Proposed Policy''
section of the NPRM, demonstrate that we considered the proposal
against the alternative of making no change.\72\ Also, as we stated in
the ``Proposed Policy'' section of the NPRM, ``[d]uring the development
of [the NPRM], we considered other means-tested programs, including
Medicaid, the Low Income Home Energy Assistance Program (LIHEAP), the
Special Supplemental Nutrition Program for Women, Infants, and Children
(WIC), the Housing Choice Voucher Program, Project Based Rental
Assistance, and Public Housing, which we discuss[ed] in the `Rationale
for the Proposed Policy' section'' of the NPRM.\73\
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\72\ See 88 FR 67148, 67151-52 (Sept. 29, 2023).
\73\ Id. at 67150-51 (footnotes omitted).
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With regard to the commenter's assertion that SIPP data was better
for this rulemaking than CPS data, in our development of the estimated
Federal SSI program cost effects, we did not use the income fields from
the CPS to estimate the effects of this proposal. The CPS was only used
for the purpose of determining how many SSI households were also
receiving SNAP and would thus be impacted by implementation of the
proposal. Regarding the research cited in the NPRM that used the CPS,
the CPS Annual Social and Economic Supplement (CPS ASEC) is the source
of official poverty measures, and we consider it sufficiently reliable
for other government estimates. A chief advantage of the CPS ASEC over
the SIPP (used by the FEM) is larger sample size. Because PA households
represent a small fraction of the SSI caseload, we rely on the larger
data source to make more precise estimates. Even the CPS ASEC does not
include enough cases to support the additional detailed analyses that
the commenter would like to see.
Comment: Two commenters stated that the NPRM should comply with the
Fiscal Responsibility Act of 2023, known as the Administrative Pay-As-
You-Go Act of 2023.\74\
---------------------------------------------------------------------------
\74\ Public Law 118-5, div. B, title III.
---------------------------------------------------------------------------
Response: This rule complies with the Administrative Pay-As-You-Go
Act of 2023. That Act does not impose requirements at the NPRM stage.
Additionally, this final rule is not subject to the Act's requirements
because it is not estimated to increase direct spending by at least
$100 million for FY 2024 (the first fiscal year during the 10-year
period). See section 266 of the Act.
Comment: One commenter opposed the proposed rule based on the
administrative implementation cost of $105 million because, in the
commenter's view, it conflicts with our anticipated administrative
burden reduction from simplified calculations. The commenter also
stated that there will be more redeterminations and more applications
because of the new policy.
Response: To clarify, administrative costs to implement a new
regulation (stemming from a variety of sources, such as new systems)
are distinct from non-financial administrative burden sources such as
time, ease, and efficiency. Administrative costs and non-financial
burdens, then, will not necessarily move in the same direction. As
explained in the NPRM, we anticipate this policy change will result in
administrative costs that will be only partially offset by
administrative savings. At the same time, we expect processing time
savings because employees will spend less time developing household
expenses and making inside ISM determinations. Nonetheless, as the
comment suggests, we estimated that there will be costs to process
additional claims, reconsiderations, and appeals. As we stated in the
NPRM, we anticipate that this expansion of our PA household policy will
increase the amount of monthly SSI benefits for those to whom the
policy applies and make more individuals eligible for SSI benefits.
Consequently, we anticipate that there will be additional costs to
process redeterminations and post-eligibility actions associated with
this rule change.
In summary, we acknowledge what the commenter is expressing, and we
provided revised estimate text in the preamble to clarify that the
administrative burden would be reduced in a subset of cases, which
would only partially offset the greater amount of costs from newly
eligible recipients. However, as further discussed in the preamble and
in the Regulatory Impact Analysis, we have determined that the benefits
of the rule justify the costs, and that the rule can have
administrative benefits even while it imposes administrative costs.
Comment: One commenter asserted that using SNAP to confirm SSI
eligibility will result in overpayments in multiple programs, thereby
increasing financial burdens on beneficiaries to repay the funds. The
commenter stated that ``SNAP income and asset testing has changed
dramatically with the creation and expansion of Broad-Based Categorical
Eligibility (BBCE). This has contributed to a massive increase in SNAP
participation rolls and a greater reliance on recipient self-
attestation--the number one contributor to program overpayments.'' The
commenter also asserted that our proposed rule ``will increase the
participation in SSI, not decrease as imagined in [the] NPRM.''
Response: Under this final rule, receipt of SNAP is not dispositive
of the applicant's or recipient's SSI eligibility. It is true that
under this final rule, receipt of SNAP by one or more household members
(other than the SSI applicant or recipient) may factor into our
determination of whether the SSI applicant or recipient lives in a PA
household, but this is advantageous to the individual applying for or
receiving SSI. If the SSI applicant or recipient lives in a PA
household, that means
[[Page 28616]]
only that we consider the SSI applicant or recipient not to be
receiving ISM from members of the household--not necessarily that the
SSI applicant or recipient is eligible for SSI.
We carefully considered the commenter's reservations about SNAP.
However, we continue to maintain that adding SNAP is consistent with
the rationales and purposes of our PA household policy, as discussed in
the NPRM and in this final rule. We would add, first, that we find it
reasonable and supportable to consider a needs-based eligibility
determination by a government entity, on a matter within its
competence, as reliable. Second, an overpayment determination for a
given type of benefit does not necessarily mean that the applicant or
recipient was not entitled or eligible to receive any such benefits for
the period at issue; and our PA household policy looks at receipt of a
PIM payment generally, not the amount of the PIM payment. Third, if we
determined, in light of another government entity's overpayment
determination, that a household member did not receive a PIM payment,
we could and would make a correction, as appropriate and subject to all
our usual rules, including administrative finality.\75\ Fourth, BBCE
``is a policy in which households may become categorically eligible for
SNAP because they qualify for a non-cash Temporary Assistance for Needy
Families (TANF) or state maintenance of effort (MOE) funded benefit.''
\76\ BBCE is consistent with our longstanding list of PIM programs,
which includes both TANF and State or local government assistance
programs based on need.\77\
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\75\ See 20 CFR 416.1488.
\76\ <a href="https://www.fns.usda.gov/snap/broad-based-categorical-eligibility">https://www.fns.usda.gov/snap/broad-based-categorical-eligibility</a>.
\77\ See 20 CFR 416.1142(a)(1), (6).
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Lastly, contrary to the commenter's statement, our proposed rule
did not indicate that we anticipated a decrease in SSI participation.
In the NPRM, we stated that there would be a ``decrease [in] the number
of SSI applicants and recipients charged with in-kind support and
maintenance (ISM)'' and a ``decrease [in] the amount of income we would
deem to SSI applicants or recipients because we would no longer deem
income from ineligible spouses and parents who receive SNAP benefits
and live in the same household.'' \78\
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\78\ 88 FR 67148, 67148.
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Comment: One commenter suggested reducing administrative burden
when we determine eligibility by conducting mandatory verifications of
all income and assets in SSI applications, because self-attestation
creates ``an environment favorable to first and third-party fraud[.]''
The commenter stated that ``the `pay and chase' implications in
overpayment recoveries infers an administrative burden upon state and
local welfare agencies.''
Response: Verification of ``all income and assets in SSI
applications'' is outside the scope of this rulemaking. However, we
note that in administering the SSI program, we carefully ensure that
our policies and procedures are consistent with the requirement in the
Social Security Act: ``that eligibility for [SSI] benefits . . . will
not be determined solely on the basis of declarations by the applicant
concerning eligibility factors or other relevant facts, and that
relevant information will be verified from independent or collateral
sources and additional information obtained as necessary in order to
assure that such benefits are provided only to eligible individuals (or
eligible spouses) and that the amounts of such benefits are correct.''
\79\
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\79\ 42 U.S.C. 1383(e)(1)(B)(i).
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Regarding our PA household policy, we do not rely on self-
attestation alone. For initial claims, we ``substantiate receipt of PA
payments'' (or PIM payments) with ``evidence . . . [in] the form of an
award letter, report of contact with the paying agency, etc.''; and, in
post-eligibility situations, we appropriately document or substantiate
PIM payments depending on indications of a changed living
arrangement.\80\ Lastly, after over 40 years of applying our PA
household policy, we are aware of no evidence that the policy as such
leads to overpayments or that overpayments occur with respect to PA
household determinations more than other comparable determinations.
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\80\ POMS SI 00835.130E.
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Miscellaneous Comments
Comment: One commenter asserted the proposed rule would not benefit
the quality of life of all U.S. citizens and that ``[t]here is no
defined option to revert changes if [the rulemaking] proves to be
incorrect.''
Response: Under the Social Security Act, we have broad authority to
make and revise rules and regulations, consistent with the Act, that
are necessary or appropriate for the administration of our programs,
including the SSI program.\81\ Adding SNAP to the list of PIM programs
in our definition of a PA household and adopting the any other
definition are proper exercises of the Commissioner's rulemaking
authority under the Act, and these changes are appropriate and
justified. For the reasons articulated in the NPRM and this final rule,
we believe these changes will help us administer the SSI program and
provide better support to individuals with limited income and
resources. Administering the SSI program as we have been charged to do
benefits the public more broadly and the common good.
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\81\ See 42 U.S.C. 405(a), 902(a)(5), 1383(d)(1), 1383b(a).
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Comment: One commenter opposed the proposed rule in light of
inflation, which ``is presenting challenges for low/no income
individuals with their SSI payment and SNAP benefits taken together.
Any cuts to their SSI payment at this time will place such individuals
at a disadvantage in paying their bills and living with dignity in
their households.'' The commenter also suggested that we tax ``the
super-rich'' and ``[s]top illegal immigrants at the border and stop
them from exploiting the benefits budgeted for legal residents with
genuine needs.''
Response: This rulemaking will not result in cuts to SSI payments.
We anticipate that the expansion of our PA household policy will
increase SSI payments for those to whom the policy applies. Taxation
and border control are outside our administrative authority and outside
the scope of this rulemaking. Immigration status may be relevant for
SSI purposes, but changes to national immigration policy are outside
the scope of this rulemaking.
Regulatory Procedures
E.O. 12866, as Amended by E.O. 14094
We consulted with the OMB, and OMB determined that this final rule
meets the criteria for a significant regulatory action under section
(3)(f)(1) of E.O. 12866, as amended by E.O. 14094, and is subject to
OMB review.
Anticipated Transfers to Our Program
The primary anticipated impact of this rule is an increase in
monetary transfers from the government to SSI recipients. Our Office of
the Chief Actuary (OCACT) estimates that implementation of this rule
would result in a total increase in Federal SSI payments of $15 billion
over fiscal years 2024 through 2033, assuming implementation of this
rule beginning on September 30, 2024. When the effects of implementing
this rule are fully realized, the annual increase in Federal SSI
payments is estimated to be about two percent relative to what would
have occurred under previous rules. To estimate the impact, OCACT used
the Annual and Social Economic Supplement (ASEC) to the Current
[[Page 28617]]
Population Survey (CPS) and our administrative data. We expect that
adding SNAP to the list of PIM programs and changing to the any other
definition of a PA household will increase the number of PA households
for which we do not charge inside ISM, which will increase Federal SSI
payments for these recipients. In addition, we expect that no longer
deeming income from ineligible spouses and parents whose income is used
to determine eligibility for or amount of SNAP payments will also
increase Federal SSI payments. We expect that implementation of this
final rule will also cause some individuals to receive Federal SSI
payments who would not have been eligible under the previous rules.
According to our Office of the Chief Information Officer, Office of
Benefit Information Systems, as of January 2023, there were 303,609 SSI
recipients living in a PA household according to the previous
definition, approximately four percent of our total 7.5 million SSI
recipients.\82\ We expect the share of SSI recipients living in a PA
household, as defined under this rule, to increase substantially when
this final rule is implemented. Specifically, OCACT estimates that once
this rule is implemented and the effects have stabilized, in fiscal
year 2033 roughly 277,000 Federal SSI recipients (4 percent of all SSI
recipients) will have an increase in monthly payments compared to
current rules, and an additional 109,000 individuals (1 percent
increase) will receive Federal SSI payments who would not have been
eligible under current rules.
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\82\ Annual Statistical Supplement, 2023--Summary of SSI.
Available at: <a href="https://www.ssa.gov/policy/docs/statcomps/supplement/2023/7a.html">https://www.ssa.gov/policy/docs/statcomps/supplement/2023/7a.html</a>.
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Additionally, the expansions of our PA household definition could
result in a reduction of SNAP benefits due to potential interaction
between SSI and SNAP. For example, if an ineligible spouse or parent
were receiving SNAP, we would no longer deem their income to an SSI
applicant or recipient. Not deeming income for SSI purposes could lead
to an increase in the SSI payment, which could in turn cause the
household to receive a SNAP reduction that is 30 percent of the SSI
increase, up to the point of ineligibility.\83\ The household's
ineligibility for SNAP could mean, in turn, that the SSI recipient is
no longer part of a PA household for SSI purposes. Our understanding is
that: an individual or household generally would prefer cash to SNAP
benefits; an increase in SSI could not result in a decrease in SNAP
benefits greater than the increase in SSI; and, in the main, the
increase in SSI that may result from the expansions of our definition
of a PA household will be favorable on net to individuals and
households. However, we recognize that the interplay among various
benefit types, as well as the relationships and financial interests of
the SSI individual and other household members, can be complicated. We
cannot necessarily predict how the change could affect individuals
participating in other programs within these households.
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\83\ Because SNAP households are expected to spend about 30
percent of their own resources on food, the maximum monthly
allotment is calculated by multiplying a household's net monthly
income by 0.3 and subtracting the result from the maximum monthly
allotment for the household size. See ``How much could I receive in
SNAP benefits?'' at <a href="https://www.fns.usda.gov/snap/recipient/eligibility">https://www.fns.usda.gov/snap/recipient/eligibility</a>.
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Anticipated Net Administrative Cost to the Social Security
Administration
The Office of Budget, Finance, and Management estimates that this
proposal will result in a total net administrative cost of $83 million
for the 10-year period from FY 2024 to FY 2033. This estimate includes
costs to update our systems, to send notices to inform current
recipients of the policy changes, to address inquiries from the
notices, to verify receipt of SNAP benefits, and to perform additional
post-eligibility actions to account for changes in living arrangements.
Under this final rule, more individuals will be newly eligible for SSI
benefits than under the current rule, resulting in additional costs to
process additional claims, reconsiderations, appeals, redeterminations,
and post-eligibility actions. In addition to the costs, our estimate
also includes processing time savings as field office employees will
not have to spend time developing for household expenses/contributions
or the full income of deemors (ineligible parents and spouses) or go
through the inside ISM determination process during initial claims,
pre-effectuation reviews, redeterminations, and post-eligibility
actions. While our estimate includes savings due to the reduction in
processing times for affected cases, we expect that the costs to
process new claims, reconsiderations, and appeals for additional newly
eligible individuals will outweigh the savings.
Anticipated Qualitative Costs & Benefits
We anticipate qualitative benefits from the revision of adding SNAP
to the PA household definition, thereby ensuring that ISM and income
deeming do not undermine the economic security of households who
receive nutrition assistance.
Additionally, the revision will reduce administrative burdens for
SSI applicants or recipients. Under our finalized policy, the list of
PIM programs includes SNAP, and the definition of PA household has
changed to refer to a household which has both the SSI applicant or
recipient, and at least one other household member who receives a PIM
payment. Once we identify that an SSI applicant or recipient lives in a
PA household, the applicant or recipient would not have to provide
household expenses information.
Our change from every member to any other member receiving a PIM
payment to meet the definition of a PA household further simplifies the
development of living arrangements and ISM, reduces SSA's
administrative costs and compliance costs during initial determinations
and redeterminations for applicants and recipients living in PA
households, and reduces ISM complexities that lead to payment errors.
Removing the requirement that every member be in receipt of a PIM
payment will help ensure that we reach more SSI applicants and
recipients based on their need, especially in cases where one
individual in a household was categorically ineligible for a PIM
payment for reasons unrelated to their potential need. For example, the
change to any other will save time for individuals, household members,
and us, since we will no longer have to develop for the entire
household once we identify one other person in the household receiving
a PIM payment. We acknowledge that if the individual receiving the PIM
payment leaves the household we would subsequently inquire if there is
another household member also receiving a PIM payment, and this would
impose a small administrative burden. However, this burden is not
meaningfully different from those caused by other changes in
circumstances that would lead us to verify whether the SSI recipient
remains eligible for SSI benefits. We anticipate this final rule will
still reduce administrative burden overall.
We also anticipate some qualitative costs. Specifically, because of
our new definition of a ``public assistance household,'' the SSI
applicant or recipient will now need to answer new questions and
provide documentation about the public assistance they and others in
their household receive, so we can accurately determine if they live in
a ``public assistance household.'' As well, since SNAP is being added
to the list of programs considered for PA household determinations,
processing times may temporarily increase as we
[[Page 28618]]
verify receipt of SNAP benefits. This additional information is a
qualitative cost of the regulation, although ultimately, providing the
information may be beneficial to the SSI applicant or recipient.
Additionally, the rule change may impose quantitative costs on us
due to our increased need for additional development in certain
circumstances. For instance, it is possible our regulatory change may
incentivize current SSI recipients to change living arrangements to co-
locate with family or friends who are receiving SNAP. This is similar
to our current policy that requires SSI applicants and recipients to
notify us of changes in their living arrangements. SSI applicants and
recipients will need to ask ineligible spouses or parents whether their
income was used to determine eligibility for, or the amount of, the
SNAP benefits. If it was, and if this information is verified by SSA
during the initial claim, we would exclude the income for deeming
purposes in the SSI program.\84\
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\84\ See POMS SI 01320.141.
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Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the Office of Information and Regulatory Affairs designated this rule
as meeting the criteria in 5 U.S.C. 804(2).
E.O. 13132 (Federalism)
We analyzed this rule in accordance with the principles and
criteria established by E.O. 13132 and determined that the rule will
not have sufficient federalism implications to warrant the preparation
of a federalism assessment. We also determined that this rule will not
preempt any State law or State regulation or affect the States'
abilities to discharge traditional State governmental functions.
Regulatory Flexibility Act
We certify that this rule will not have a significant economic
impact on a substantial number of small entities because it affects
individuals only. Therefore, a regulatory flexibility analysis is not
required under the Regulatory Flexibility Act, as amended.
Paperwork Reduction Act
The final rule requires minor revisions to our existing information
collections to expand our definition of PA Household and include SNAP
as an example of a PIM program. In addition, the application of the
revisions to these rules causes a burden change to our currently
approved information collections under the following information
collection requests: 0960 0174, the SSA-8006, Statement of Living
Arrangements, In Kind Support and Maintenance; 0960-0456, the SSA-8011,
Statement of Household Expense and Contributions; and 0960-0529, the
SSA-5062, Claimant Statement about Loan of Food or Shelter, and the SSA
L5063-F3, Statement about Food or Shelter Provided to Another. We also
anticipate a small burden reduction per response for the SSA 8006
(0960-0174) as respondents will not need to develop the responses about
their household. In addition, we anticipate a 50% reduction in the
number of respondents based on those who indicate they are part of a
Public Assistance Household and who may not need to complete the
follow-up forms SSA-5062, SSA L5063, SSA-8006, and SSA 8011. We
anticipate this will result in a reduction in the overall burden for
these information collections.
We published a notice of proposed rulemaking on September 29, 2023,
at 88 FR 67148. In that notice, we solicited comments under the PRA on
the burden estimate; the need for the information; its practical
utility; ways to enhance its quality, utility, and clarity; and on ways
to minimize the burden on respondents, including the use of automated
collection techniques or other forms of information technology. The
comments section above includes our responses to the PRA-related public
comments we received under the NPRM.
The following chart shows the reduction in time burden information
associated with the final rule:
BILLING CODE 4191-02-P
[[Page 28619]]
[GRAPHIC] [TIFF OMITTED] TN19AP24.106
[[Page 28620]]
The following chart shows the reduction in theoretical cost burdens
associated with the final rule:
[GRAPHIC] [TIFF OMITTED] TN19AP24.107
[[Page 28621]]
[GRAPHIC] [TIFF OMITTED] TN19AP24.108
[[Page 28622]]
[GRAPHIC] [TIFF OMITTED] TN19AP24.109
As we have revised the associated burdens for the above-mentioned
forms since we made revisions to the final rule which were not included
at the NPRM stage, we are currently soliciting comment on the burden
for the forms as shown in the charts above. If you would like to submit
comments, please send them to the following locations:
BILLING CODE 4191-02-C
Office of Management and Budget, Attn: Desk Officer for SSA, Fax
Number: 202-395-6974
Social Security Administration, OLCA, Attn: Reports Clearance Director,
3100 West High Rise, 6401 Security Blvd., Baltimore, MD 21235, Fax:
410-966-2830, Email address: <a href="/cdn-cgi/l/email-protection#a9e6fb87fbccd9c6dbddda87eac5ccc8dbc8c7cacce9dadac887cec6df"><span class="__cf_email__" data-cfemail="f9b6abd7ab9c89968b8d8ad7ba959c988b98979a9cb98a8a98d79e968f">[email protected]</span></a>
You can submit comments until May 20, 2024, which is 30 days after
the publication of this notice. To receive a copy of the OMB clearance
package, contact the SSA Reports Clearance Officer using any of the
above contact methods. We prefer to receive comments by email or fax.
List of Subjects in 20 CFR Part 416
Administrative practice and procedure, Reporting and recordkeeping
requirements, Supplemental Security Income (SSI).
The Commissioner of Social Security, Martin O'Malley, having
reviewed and approved this document, is delegating the authority to
electronically sign this document to Faye I. Lipsky, who is the primary
Federal Register Liaison for SSA, for purposes of publication in the
Federal Register.
Faye I. Lipsky,
Federal Register Liaison, Office of Legislation and Congressional
Affairs, Social Security Administration.
For the reasons stated in the preamble, we amend 20 CFR chapter
III, part 416, as follows:
PART 416--SUPPLEMENTAL SECURITY INCOME FOR THE AGED, BLIND, AND
DISABLED
Subpart K--Income
0
1. The authority citation for subpart K of part 416 continues to read
as follows:
Authority: 42 U.S.C. 902(a)(5), 1381a, 1382, 1382a, 1382b,
1382c(f), 1382j, 1383, and 1383b; sec. 211, Pub. L. 93-66, 87 Stat.
154 (42 U.S.C. 1382 note).
0
2. Amend Sec. 416.1142 by revising paragraphs (a) introductory text,
(a)(6) and (7) and adding paragraph (a)(8) to read as follows:
Sec. 416.1142 If you live in a public assistance household.
(a) Definition. For purposes of our programs, a public assistance
household is one that has both an SSI applicant or recipient, and at
least one other household member who receives one or more of the listed
public income maintenance payments. These are payments made under--
* * * * *
(6) State or local government assistance programs based on need
(tax credits or refunds are not assistance based on need);
(7) U.S. Department of Veterans Affairs programs (those payments
based on need); and
(8) The Supplemental Nutrition Assistance Program (SNAP).
* * * * *
[FR Doc. 2024-08364 Filed 4-18-24; 8:45 am]
BILLING CODE 4191-02-P
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