Rescission of Social Security Acquiescence Ruling 90-2(2)

Issuing agencies

Abstract

The Commissioner of Social Security gives notice of the rescission of AR 90-2(2): Ruppert v. Bowen, 871 F.2d 1172 (2d Cir. 1989)--Evaluation of a Rental Subsidy as In-Kind Income for Supplemental Security Income (SSI) Benefit Calculation Purposes--Title XVI of the Social Security Act (Act).

Full Text

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<title>Federal Register, Volume 91 Issue 167 (Monday, August 31, 2026)</title>
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[Federal Register Volume 91, Number 167 (Monday, August 31, 2026)]
[Notices]
[Pages 55964-55965]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-17746]


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SOCIAL SECURITY ADMINISTRATION

[Docket No. SSA-2025-0057]


Rescission of Social Security Acquiescence Ruling 90-2(2)

AGENCY: Social Security Administration.

ACTION: Notice of Rescission of Social Security Acquiescence Ruling 
(AR).

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SUMMARY: The Commissioner of Social Security gives notice of the 
rescission of AR 90-2(2): Ruppert v. Bowen, 871 F.2d 1172 (2d Cir. 
1989)--Evaluation of a Rental Subsidy as In-Kind Income for

[[Page 55965]]

Supplemental Security Income (SSI) Benefit Calculation Purposes--Title 
XVI of the Social Security Act (Act).

DATES: August 31, 2026.

FOR FURTHER INFORMATION CONTACT: Tracy Rega, Office of Income Security 
Programs, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235-6401, (410) 965-4497, for information about this 
notice. 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="http://www.socialsecurity.gov">http://www.socialsecurity.gov</a>.

SUPPLEMENTARY INFORMATION: In accordance with 20 CFR 402.160(b)(2) and 
416.1485(e)(4), the Commissioner of Social Security gives notice of the 
rescission of AR 90-2(2).
    When we determine that a United States Court of Appeals holding 
conflicts with our interpretation of the Act or regulations, and the 
Government does not seek further judicial review, we will issue an 
AR.\1\ We may rescind an AR as obsolete if we subsequently clarify, 
modify, or revoke the regulation that was the subject of the circuit 
court holding that we determined conflicted with our interpretation of 
the Act or regulations.\2\
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    \1\ See 20 CFR 416.1485(b).
    \2\ See id. at 416.1485(e)(4).
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    On July 16, 1990, we published AR 90-2(2) to reflect the Second 
Circuit's holding in Ruppert v. Bowen, 871 F.2d 1172 (2d Cir. 1989).\3\ 
In Ruppert, the Second Circuit addressed an aspect of our in-kind 
support and maintenance (ISM) rules outlined in 20 CFR 416.1130, under 
which we considered whether an individual was receiving ISM in the form 
of room or rent (sometimes referred to as our rental subsidy policy). 
Under that regulation at the time, we would not consider an individual 
to be receiving ISM if they paid the monthly required rent charged 
under a ``business arrangement'' in which the rent equaled or exceeded 
the current market rental value. In Ruppert, the Second Circuit held 
that we must determine whether an individual receives an ``actual 
economic benefit'' from a rental subsidy before charging the individual 
with in-kind support and maintenance (ISM); and that economic benefit 
could not be presumed based on the difference between current market 
rental value and the actual amount of rent paid. To apply the circuit 
court's holding, AR 90-2(2) instructed that if the actual amount of 
rent paid equals or exceeds the presumed maximum value (PMV) described 
in 20 CFR 416.1140, we would not consider there to be a rental subsidy 
for purposes of ISM.\4\
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    \3\ See 55 FR 28947 (July 16, 1990).
    \4\ See id. at 28949.
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    On April 11, 2024, we published in the Federal Register the final 
rule Expansion of the Rental Subsidy Policy for Supplemental Security 
Income (SSI) Applicants and Recipients.\5\ We revised 20 CFR 416.1130 
to accord with Ruppert and the policy in AR 90-2(2): an individual does 
not receive (countable) ISM in the form of a rental subsidy if the 
amount of monthly required rent to be paid equals or exceeds the PMV; 
and, if the required amount of rent is less than the PMV, we will 
impute as ISM the difference between the required amount of rent and 
either the PMV or the current market rental value, whichever is 
less.\6\
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    \5\ See 89 FR 25507 (Apr. 11, 2024). The final rule became 
effective September 30, 2024. See id.
    \6\ See 55 FR at 28949; 89 FR at 25513; 20 CFR 416.1130(b)(1).
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    Because the regulation that was the subject of the Ruppert AR has 
been revised effective September 30, 2024, AR 90-2(2) is now obsolete. 
Accordingly, we are rescinding AR 90-2(2).\7\
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    \7\ See 20 CFR 416.1485(e)(4).

Mark Steffensen,
General Counsel, Social Security Administration.
[FR Doc. 2026-17746 Filed 8-28-26; 8:45 am]
BILLING CODE 4191-02-P


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