SSI Savings Penalty Elimination Act

House Bill

H.R. 2540

119th Congress

SSI Savings Penalty Elimination Act

In Committee

Introduced:Nov 25, 2025

Primary Sponsor

Danny K. Davis

Representative

Democratic

IL-7

Cosponsors

5

Quick Stats

Policy Area

Taxation

Summary

This bill would increase the resource (asset) limits for individuals and couples to qualify for Supplemental Security Income (SSI), a federal program that provides monthly payments to low-income elderly, blind, and disabled people. It would raise the individual limit from $2,250 to $20,000 in 2025, and the couple limit from $1,500 to $10,000 in 2025, with annual increases to account for inflation.

Latest Action

Referred to the Subcommittee on Work and Welfare.

AI Summary

Plain-English explanation of this bill

This bill would increase the resource (asset) limits for individuals and couples to qualify for Supplemental Security Income (SSI), a federal program that provides monthly payments to low-income elderly, blind, and disabled people. It would raise the individual limit from $2,250 to $20,000 in 2025, and the couple limit from $1,500 to $10,000 in 2025, with annual increases to account for inflation.

Last updated: 12/29/2025

Official Summary

Congressional Research Service summary

End Child Poverty Act This bill replaces the earned income tax credit and the child tax credit with a universal child assistance program. The program establishes a set monthly assistance payment for each child of a taxpayer less than 19 years of age. The bill establishes an Office of Universal Child Assistance in the Social Security Administration for purposes of administering the assistance program. The bill also allows a $600 refundable tax credit for adult dependents and certain family members.

Key Points

Main provisions of the bill

Raises the asset limit for individuals from $2,250 to $20,000 in 2025, and for couples from $1,500 to $10,000 in 2025.
Ties the asset limits to inflation, so they will automatically increase each year to keep pace with the cost of living.
The goal is to allow SSI recipients to save more money without losing their benefits, reducing the 'savings penalty' they currently face.

How This Impacts Americans

Potential effects on citizens and communities

If enacted, this bill would benefit low-income elderly, blind, and disabled Americans who rely on SSI by allowing them to save more money without risking their vital benefits. It could help recipients build up emergency savings, invest in their futures, and have greater financial security.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

2540, 119th Congress (2025). "SSI Savings Penalty Elimination Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-2540