Protecting Supplemental Security Income for Disaster Victims Act

Bill Number

H.R. 6724

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Social Welfare

Status

Introduced

Latest Action

2025-12-15: Referred to the House Committee on Ways and Means.

Last Updated

2026-03-28T08:06:36Z

AI-Generated Summary

Purpose

The "Protecting Supplemental Security Income for Disaster Victims Act" (H.R. 6724) aims to protect Supplemental Security Income (SSI) benefits for low-income individuals who are elderly, blind, or disabled. It prevents certain disaster-related settlement payments from reducing or eliminating these benefits by excluding them from income and resource calculations under the Social Security Act.

Key Provisions

• Income Exclusion: Amends Section 1612(b) of the Social Security Act to disregard (exclude) any settlement payments received for personal injury, physical sickness, or damage/depreciation of property. This includes settlements from the specific case In Re: East Palestine Train Derailment (Case No. 4:23-CV-00242) in the U.S. District Court for the Northern District of Ohio, regardless of when received (before, on, or after enactment).
• Resource Exclusion: Amends Section 1613(a) to exclude the same settlement payments from countable resources (assets that affect eligibility) starting from the month of receipt and continuing indefinitely.
• Effective Date: Applies to SSI benefits for months beginning on or after the date of enactment. For the East Palestine derailment settlements, it also applies retroactively to benefits paid for earlier months.

Significant Changes to Existing Law

• Previously, SSI rules counted most settlement payments as income in the month received and as resources afterward, which could disqualify recipients if totals exceeded limits (e.g., $2,000 for individuals or $3,000 for couples).
• This bill adds new exclusions (paragraphs 27 and 18) to Title XVI, creating a permanent carve-out for these types of disaster-related settlements, with explicit reference to the East Palestine case. This is a targeted expansion of existing disregards for certain unearned income and resources.

Potential Impacts

• On Citizens: SSI beneficiaries who receive qualifying settlements (e.g., victims of the 2023 East Palestine train derailment) can retain full benefits without financial penalties, providing economic stability during recovery from disasters. Retroactive application may lead to back payments for those previously affected.
• On Government Agencies: The Social Security Administration (SSA) will need to update eligibility reviews, recalculate benefits, and process potential reimbursements, increasing administrative workload but reducing overpayment recoveries related to these settlements.
• On International Relations: No direct impact, as the bill focuses on domestic disaster relief and social welfare.

Main Stakeholders Affected

• Primary Beneficiaries: Low-income SSI recipients impacted by personal injury, illness, or property damage from disasters, especially those involved in the East Palestine train derailment (e.g., residents of Ohio and surrounding areas).
• Government Entities: SSA, which administers SSI, and Congress (via the Ways and Means Committee overseeing social welfare programs).
• Secondary Groups: Legal claimants in similar future disaster cases, advocacy organizations for disabled or low-income individuals, and potentially railroads or insurers involved in settlements.

Notable Legal, Constitutional, or Political Implications

• Legal: The retroactive provision could require SSA to refund previously reduced benefits, raising questions of administrative feasibility and potential lawsuits over past denials. It sets a precedent for excluding specific case settlements, which might encourage similar targeted legislation for other disasters.
• Constitutional: Aligns with equal protection principles by aiding vulnerable populations without broader fiscal overreach; no apparent conflicts with spending clause authority.
• Political: Represents bipartisan support (introduced by Reps. Rulli and Deluzio) for localized disaster relief, potentially influencing future environmental or transportation safety policies. It highlights tensions between welfare stability and fiscal conservatism in counting non-recurring income.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Rulli, Michael A. [R-OH-6]

Cosponsors (3)

Rep. Deluzio, Christopher R. [D-PA-17], Rep. Mannion, John W. [D-NY-22], Rep. Carey, Mike [R-OH-15]

Recent Actions

• 2025-12-15: Referred to the House Committee on Ways and Means.
• 2025-12-15: Introduced in House
• 2025-12-15: Introduced in House

Bill Versions

• Protecting Supplemental Security Income for Disaster Victims Act — issued 2025-12-15 — PDF (3 pages)