To update the supplemental security income program, and to increase incentives for working, saving, and pursuing an education.

April 19, 2005

Mr. CARDIN (for himself, Mr. RANGEL, Mr. MCDERMOTT, Mr. STARK, Mr. LEVIN, and Mr. EMANUEL) introduced the following bill; which was referred to the Committee on Ways and Means

To update the supplemental security income program, and to increase incentives for working, saving, and pursuing an education.

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 `SSI Modernization Act of 2005'.

SEC. 2. GENERAL INCOME EXCLUSION.

(a) Increase- Section 1612(b)(2)(A) of the Social Security Act (42 U.S.C. 1382a(b)(2)(A)) is amended by striking `$240' and inserting `$480 (or, if greater, the amount determined under section 1617)'.

(b) Cost-of-Living Adjustment- Section 1617 of such Act (42 U.S.C. 1382f) is amended--

(1) in subsection (a)(1), by inserting `subsection (b)(2)(A) of section 1612,' after `section 1611,'; and

(2) in subsection (b), by striking `section 1611' and inserting `sections 1611 and 1612'.

SEC. 3. EARNED INCOME EXCLUSION.

(a) Increase- Section 1612(b)(4) of the Social Security Act (42 U.S.C. 1382a(b)(4)) is amended by striking `$780' each place it appears and inserting `$1,560 (or, if greater, the amount determined under section 1617)'.

(b) Cost-of-Living Adjustment- Section 1617(a)(1) of such Act (42 U.S.C. 1382f), as amended by section 2(b)(1) of this Act, is amended by striking `subsection (b)(2)(A)' and inserting `subsections (b)(2)(A), (b)(4)(A), (b)(4)(B), and (b)(4)(C)'.

SEC. 4. RESOURCE LIMITS.

(a) Increase- Section 1611(a)(3) of the Social Security Act (42 U.S.C. 1382(a)(3)) is amended--

(1) in subparagraph (A)--

(A) by striking `and' the last place it appears; and

(B) by inserting `, and to $4,500 on January 1, 2006' before the period; and

(2) in subparagraph (B)--

(A) by striking `and' the last place it appears; and

(B) by inserting `, and to $3,000 on January 1, 2006' before the period.

(b) Cost-of-Living Adjustment- Section 1617(a)(1) of such Act (42 U.S.C. 1382f), as amended by sections 2(b)(1) and 3(b) of this Act, is amended by inserting `(b)(3)(A), (b)(3)(B),' after `(b)(2)(A),'.

SEC. 5. REDETERMINATIONS FOR SECONDARY SCHOOL STUDENTS TURNING 18.

Section 1614(a) of the Social Security Act (42 U.S.C. 23 1382c(a)) is amended by adding at the end the following:

`(5) If, as of the date an individual attains 18 years of age, the individual is regularly attending (as defined in regulations) a secondary school or a local school system is maintaining responsibility for the individual through an individualized education plan, the individual shall not be considered to have attained 18 years of age for purposes of paragraphs (3) and (4) until the earlier of--

`(A) the earliest subsequent date the individual ceases to be regularly attending a secondary school or participating in such a plan; or

`(B) the date the individual attains 21 years of age.'.

SEC. 6. EFFECTIVE DATE.

The amendments made by this Act shall take effect on January 1, 2006.

END