Deluzio, Rulli Introduce Bipartisan Bill to Protect SSI Benefits for Disaster Victims

WASHINGTON, D.C. - Today, Congressmen Chris Deluzio (PA-17) and Mike Rulli (OH06) introduced the Protecting Supplemental Security Income for Disaster Victims Act,legislation to ensure that Supplemental Security Income (SSI) recipients do not lose or have their benefits reduced when they receive settlement payments after a tragedy.

The February 3, 2023, derailment of a Norfolk Southern train carrying hazardous chemicals led to a controlled burn that sent toxic fumes into the air, leaving families terrified and communities deeply shaken. In the chaotic aftermath, many residents were forced to pay out of pocket for emergency housing, medical care, and other immediate needs. Months passed as millions of dollars were spent on cleanup efforts and tons of contaminated soil were removed before a monetary settlement was finally reached to begin making residents whole for the harm they suffered through no fault of their own.

This past summer, constituents began reaching out about the unintended consequences facing Supplemental Security Income recipients who accepted those settlement payments. SSI serves older, blind, and disabled individuals living on fixed incomes with very limited resources, and for some, receiving settlement funds triggered a reduction or complete loss of their benefits. No disaster victim should be forced to choose between seeking justice and keeping their only source of income. The Protecting Supplemental Security Income for Disaster Victims Actaddresses this injustice by taking actions such as exempting settlement funds from being counted as income or resources for SSI eligibility

"After a disaster or health emergency, people sometimes receive settlement payments-that's what happened to a lot of folks who live close to the Norfolk Southern train derailment site in East Palestine," said Congressman Chris Deluzio (PA-17). "People dealing with the fallout of a disaster like this should not see their Social Security earned benefits lowered because they unexpectedly got money in a settlement. I'm proud to introduce the bipartisan Protecting Supplemental Security Income for Disaster Victims Actwith my Ohio colleague Congressman Rulli to fix this."

"Whether the settlement comes from a train derailment, a personal injury, or another disaster, our most vulnerable citizens should not be forced to choose between necessary compensation and their fixed income," said Congressman Mike Rulli (OH-06). "No one should see their SSI benefits reduced, clawed back, or eliminated simply because they accepted funds intended to help them recover."

The Protecting Supplemental Security Income for Disaster Victims Actensures that settlement payments are exempt from being counted as income or resources when determining SSI eligibility and benefit amounts. The bill is aligned with IRS guidance on the treatment of settlement funds for tax purposes and covers both the East Palestine settlement and any future settlements received for personal injury, physical sickness, or damage or depreciation of property.

This legislation will help safeguard stability and dignity for SSI recipients during the aftermath of disasters and emergencies.

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