To eliminate the unfair and disadvantageous treatment of cash military compensation other than basic pay under the supplemental security income benefits program.

July 18, 2003

Mrs. DAVIS of California (for herself, Mr. SANDERS, Ms. LEE, Mr. MORAN of Virginia, and Mr. HOLT) introduced the following bill; which was referred to the Committee on Ways and Means

To eliminate the unfair and disadvantageous treatment of cash military compensation other than basic pay under the supplemental security income benefits program.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Military Families Financial Security Act'.

SEC. 2. TREATMENT OF UNIFORMED SERVICE COMPENSATION.

(a) TREATMENT OF UNIFORMED SERVICE CASH REMUNERATION AS EARNED INCOME-

(1) IN GENERAL- Section 1612(a)(1)(A) of the Social Security Act (42 U.S.C. 1382a(a)(1)(A)) is amended by inserting `(and, in the case of cash remuneration paid for service as a member of a uniformed service (other than payments described in paragraph (2)(H)), without regard to the limitations contained in section 209(d))' before the semicolon.

(2) CERTAIN HOUSING PAYMENTS TREATED AS IN-KIND SUPPORT AND MAINTENANCE- Section 1612(a)(2) of such Act (42 U.S.C. 1382a(a)(2)) is amended--

(A) by striking `and' at the end of subparagraph (F);

(B) by striking the period at the end of subparagraph (G) and inserting `; and'; and

(C) by adding at the end the following:

`(H) payments to or on behalf of a member of a uniformed service for housing of the member (and his or her dependents, if any) on a facility of a uniformed service, including payments provided under section 403 of title 37, United States Code, for housing that is acquired or constructed under subchapter IV of chapter 169 of title 10 of such Code, or any related provision of law, and any such payments shall be treated as support and maintenance in kind subject to subparagraph (A) of this paragraph.'.

(b) TREATMENT OF PAY AS RECEIVED WHEN EARNED- Section 1611(c) of such Act (42 U.S.C. 1382(c)) is amended by adding at the end the following:

`(9) For purposes of this subsection, remuneration for service performed as a member of a uniformed service may be treated as received in the month in which it is earned, if the Commissioner determines that such treatment would promote the economical and efficient administration of the program authorized by this title.'.

(c) EFFECTIVE DATE- The amendments made by this section shall be effective with respect to benefits payable for months beginning at least 90 days after the date of the enactment of this Act.

SEC. 3. REMOVAL OF RESTRICTION ON PAYMENT OF BENEFITS TO CHILDREN WHO ARE BORN OR WHO BECOME BLIND OR DISABLED AFTER THEIR MILITARY PARENTS ARE STATIONED OVERSEAS.

(a) IN GENERAL- Section 1614(a)(1)(B)(ii) of the Social Security Act (42 U.S.C. 1382c(a)(1)(B)(ii)) is amended--

(1) by inserting `and' after `citizen of the United States,'; and

(2) by striking `, and who,' and all that follows and inserting a period.

(b) EFFECTIVE DATE- The amendments made by this section shall be effective with respect to benefits payable for months beginning after the date of the enactment of this Act, but only on the basis of an application filed after such date.

END