Recently President Trump’s administration released details of its proposed budget for fiscal year 2020. Some of these proposals directly involved Social Security. Below is specific information on the proposals that impact Social Security.
- Simplify administration of the SSI program. The Budget proposes changes to simplify the SSI program by incentivizing support from recipients’ family and friends, reducing SSA’s administrative burden, and streamlining requirements for applicants. SSI benefits are reduced by the amount of food and shelter, or in-kind support and maintenance, a beneficiary receives. The policy is burdensome to administer and is a leading source of SSI improper payments. The Budget proposes to replace the complex calculation of in-kind support and maintenance with a flat rate reduction for adults living with other adults to capture economies of scale. The Budget also proposes to eliminate dedicated accounts for past due benefits and to eliminate the administratively burdensome consideration whether a couple is holding themselves out as married. The proposal saves $648 million over 10 years.
- Exclude SSA debts from discharge in bankruptcy. Debts due to an overpayment of Social Security benefits are generally dischargeable in bankruptcy. The Budget includes a proposal to exclude such debts from discharge in bankruptcy, except when it would result in an undue hardship. This proposal would help ensure program integrity by increasing the amount of overpayments SSA recovers and would save $274 million over 10 years.
- Establish replacement Social Security card fee. The Budget proposes to collect fees on replacement Social Security cards. First-time Social Security cards including cards issued at birth would not be subject to the fee. The new fee would offset some administrative costs of processing Social Security card requests. While having a Social Security Number is required for many public and private sector transactions, individuals rarely need to display the physical Social Security card.
