For seniors and people who are disabled or blind. Benefit levels were last updated in the 1980s. I call this meeting to order. Senator young, thank you, Ranking Member of the subcommittee, for working with us to schedule this hearing. I appreciate the professionalism and confidence of your staff and my Office Working with all of you is really helpful. Thank you to chairman whiting for being part of this, the efforts to protect and strengthen this critical part of our Social Security system. Todays hearing on supplemental security income, ssi, is long overdue. This is the first hearing in the finance committee since 1998, before i was in the senate, for sure. That would be almost a quarter of a century. Theres not been a hearing in congress specifically about increasing benefits and eligibility since the reagan administration. In fact, that 1987, the last year or so of the reagan administration, in 1987, ways and means hearing called ssi, quote, the forgotten safety net. It was a fitting title then and it would be an even more fitting title now, given the decades of neglect that has hurt millions of americans. Nearly 8 Million People with disabilities and seniors rely on ssi to meet their basic needs, 8 Million People in our great country. The rules are needlessly complex, leaving seniors and other americans facing a maze of complicated and sometimes extraordinary rules at difficult times in their lives, and making it challenging for the Social Security administration to administer. Well hear more about that from our witnesses today. Even worse, ssis eligibility rules are even more outdated and illogical than they already were in 1987, when the program was created by congress 50 years ago, 1972, its purpose was clear to ensure the nations aged, blind, and disabled people would no longer have to subsist on below Poverty Levels. Now the people who would have longer have to subsist on programs, now the opposite is true, the eligibility rules literally havent been updated and punish them for any of their own efforts to build financial security. We want people to do a little better. Under this they lose money. Theyre punished if they try to save for an emergency, theyre punished if they try to find a parttime job, theyre punished if they accept food and shelter from generous family and community members, and theyre even punished if theyre married. It makes no sense, particularly these americans are treated to constant lectures about the value of work and selfsufficiency. Were told over and over by politicians that personal responsibility is a Central American value, yet if someone relies on ssi, someone who is relying on it saves even 1 more than the 2,000 threshold, they lose their benefits. It sends a pretty absurd message. Ssis outdated rules make it impossible for beneficiaries to live with dignity. Last year i talked with someone in northern ohio. Her sons benefits took a hit when an insurance policy she had in his name grew in value. She said it never should have happened. I felt it was unjust. Make no mistake, poverty in america is a policy choice, a policy by us. Its up to this committee, this congress, to finally make a different choice. Theres millions of seniors and people with disabilities living in poverty right now not because of their own choices, because of ours. Its why earlier this year i introduced the ssi restoration act with 20 cosponsors, including six senators from this committee. That bill would finally increase ssi benefit levels to the frad Poverty Level and it would simplify and update the eligibility rules so these americans are no longer punished for trying to build a better life for themselves. Recent analysis from the urban institute tells us the reforms would lift 3. 3 Million People out of poverty, cut poverty among ssi beneficiaries in half. The bill is supported by more than 100 national organizations, including aarp, the aflcio and even jpmorgan chase, who i know well from chairing the Senate Banking housing committee, supports increasing ssis asset limits. When you get the aflcio and jpmorgan on the same page, we may be on to something. We created this half a century ago as a key part of our system, one of the bedrooks of our society. People know if they or a loved one needs it, it will be there just like the promise of Social Security. For 30 years weve been breaking that promise. Now is the time for congress to do right by the 8 million americans relying on ssi who have been forgotten for far too long. Now is the time to finally restore this critical part of our Social Security system back to its real intent. Ive been working with senator schumer to ensure that at least long overdue updates to ssi are included in the infrastructure package and before i turn it over, i want to thank the hundreds of ssi beneficiaries that are following this hearing. Youve shared your stories on twitter with the demolished disabled policy hashtag. Youve written to the subcommittee about what improving ssi would mean to you and your families. Thank you for sharing those stories. I want you to know im listening, the subcommittee is listening, senator young is listening. Im sorry its taking this long for hearing to hear your voices. Thank you for joining us. Thank you, mr. Chairman, for holding this hearing for leadership and members of your staff working with mine to get everything ready for today. I appreciate this opportunity to discuss and review the Supplemental Security Income Program or ssi. Now, more than ever, how every taxpayer dollar is spent really matters. Programs that dont achieve results have to be fixed. The ssi Program Needs examination to ensure its achieving its intended goals in a fiscally responsible manner. Is the program functioning as congress and taxpayers expect . We cant continue to just spend more and hope it helps. We need to review the programs effectiveness so we can ensure taxpayer resources are properly targeted. The goal of the ssi program is to provide assistance to elderly and disabled individuals who have limited financial resources. It is intended as the Social Security administration identifies as a program of last resort and beneficiaries who dont rely solely on ssi benefits to live. Although ssi was created with the elderly and low income in mind, today it primarily benefits non elderly disabled adults and children. The total number of beneficiaries has grown from 4. 8 million in 1990 to 6. 6 million in 2000, to 7. 8 million today. In turn, ssi spending has risen from 33 billion in 2000 to an estimated 61 billion in 2021. Ssi and Social SecurityDisability Insurance have been on the general accountability offices high risk list since 2003. Gao states that, quote, management attention and efforts are needed across the government to ensure that disability programs provide benefits in a timely manner and reflect current ideas about disability and achieve positive employment outcomes, unquote. The Social Security administration struggles to ensure current recipients remain qualified for these programs. Ssi continues to have a higher overpayment rate than other programs, and that is an unfair burden to taxpayers, as well as ssi recipients who incorrectly receive funds they may have to repay. While ssi faces challenges in administration, Labor Force Participation remains a pressing policy challenge. Our economy is feeling the impact acutely as we emerge from the covid19 pandemic. Health related issues have been top contributors to declines in Labor Participation in people in their prime working years, causing a perpetuation of poor health for many americans. This is why we need to focus on creating more Job Opportunities for working age americans with disabilities. However, the current patchwork of safety net programs for low income americans facing disabilities or Health Issues is flawed. Many of these people are productive individuals with the potential to make valuable contributions to their communities through work, and many wish to pursue benefits from the dignity of work, to the extent that they are able to do so. Without work, however, many will fall into poverty and may never again see the social and economic benefits associated with employment. In having this discussion today, congress and this subcommittee, they would be remiss not to acknowledge that some of our nations most important federal programs, including programs administered by ssa, are financed through dedicated Revenue Sources and managed through trust funds. Several of the largest trust funds are headed toward insolvency, worsened by the pandemic. According to the most recent Social Security trustees record, the Disability Trust funds will be exhausted in 2034, a year earlier than was projected last year. This spring i joined senator romney and a group of colleagues in reintroducing a time to rescue United States trust act or the trust act. Bipartisan legislation which would create a process to rescue the endangered federal trust funds and rein in the National Debt and how congress to put the programs on a stronger financial footing. If we dont act now, the trust funds in these programs will be exhausted, leading to significant benefit cuts under current law. And americas safety net will be significantly weakened. We believe in people and we believe most people dont want to be trapped. Ssi should be available for those in need with a goal of preparing as many individuals as possible for a life of dignity in the workforce. I look forward to hearing from our witnesses on these topics and examining this program in greater detail today. Lastly, i would like to make note of the complete lack of process for the reconciliation bill being drafted by senate and house democrats. My republican colleagues on this committee have called for hearings in a markup of any reconciliation provisions in this committees jurisdiction. Americans deserve an open and transparent process. With that, i thank the witnesses for being here today and i look forward to hearing their testimony. Senator young, thank you. Weve been joined and we have four witnesses. I want to introduce, weve been joined by the distinguished chair of this committee, ron widen, the senior senator from oregon who has led the process and has been helpful encouraging this subcommittee hearing and helpful in how we move forward legislatively. Mr. Chairman, love to hear your remarks. Well, senator brown, big thanks to you for all of your leadership work in this area, and not just through this congress, but congress after congress after congress, people are walking an economic tightrope, balancing their food bill against their fuel bill, fuel bill against the rent bill. Senator brown has been there to say the federal government has got to have a sturdy safety net. So i appreciate his leadership and i also see on the screen senator young. I look forward to working on this issue as we have tried on so many in a bipartisan way. Mr. Chairman, you indicated it has been a long time since this committee or any committee has taken a close look at this absolutely crucial safety net program. Almost 8 million americans rely on supplemental security income, including 88,000 in my own home state. 10,000 of them are under the age of 18. So it is time for a crucial update for a program that is so important to so many who are so vulnerable. Now, ill wrap up with just a couple of quick additional thoughts. First, im very pleased to be a cosponsor of senator browns bill, update ssi, and i agree that the build back better plan now under consideration is a very opportune moment to make these necessary and essential improvements. I also want to thank chairman brown and others on the finance committee for cosponsoring a bill that ive been very involved in, the work without worry act. If it passes, that bill will provide needed peace of mind to a lot of individuals with disabilities who today face a disincentive to work and be in a position to live up to their full potential. Today the law says that some young people who received ssi could have their benefits cut if they decide to try work and make an income. In those cases were talking about modest benefits for people with disabilities, which is, i think, its clear and i see our friend, senator hasson here, who has done so much important work for vulnerable people. I think she would be the first to agree this is hardly an ex travagance. I hope well be able to update ssi in reconciliation and im also looking for opportunities to get work without worry across the finish line. I also want to emphasize, in addition to noting senator hassons terrific work in this area, senator cassidy is also a cosponsor of work without worry, so in the best tradition in the Senate Finance committee, chairman brown and senator young are bringing senators together, and on the issue of ssi, its not a close call. Its time to update the program and better meet the needs of those who find it so crucial. Thank you, chairman brown. Thank you, chairman, for your commence. I want to introduce the four witnesses. The introductions will be brief. The four witnesses, the director from the Government Accountability office, overseas federal disability programs. Welcome. We have the acting Deputy Commissioner for retirement policy and Social Security administration, responsible for overseeing ssi and ssa. Thank you for joining us. We have director of the Disability Justice initiative at the center for american progress, a former ssi beneficiary herself. Nice to see you. And senior policy analyst at the center of budget and policy priorities, the lead expert on Social Security and ssi at the center. So we will begin, and you are recognized for five minutes. Thank you for joining us. Im pleased to be here today to discuss our work on the ssi program. Ssa has faced longstanding challenges in administering ssi. Gao has issued a number of reports with recommendations for how ssa might address these challenges. While ssa has taken action on many of our recommendations, others remain unimplemented. My testimony today describes ssas challenges with, one, incentivizing employment for ssi recipients who wish to work and are able, and, two, preventing improper payments to ssi recipients, including overpayments. My testimony is based primarily on reports and results from the review of our ticket to work program to be issued later this fall. I will discuss work incentives for two ssi populations, transition ages who are 14 to 17 years old and working age adults. For transition age youth on ssi, ssa administers work incentives and other employment supports for youths moving into adulthood. But our work has found that few benefit from these incentives. These supports encourage work by allowing transitionage youth to keep at least some of their benefits even if they have earnings. However, gao analysis of data from 20122015 showed that less than 1. 5 benefitted from these incentives. This may be because ssi youth and their families are unaware of or do not understand the incentives or feel that work will negatively affect their benefits. Ssa has agreed with and implemented some of the recommendations we have made pertaining to work incentives for transitionage youth. Our recommendations would explore options to further connect youth to Employment Services have not been fully implemented. For working age adults on ssi who are able and wish to work, there is the ticket to work program, a voluntary program for disability beneficiaries that helps them obtain employment, increase earnings, and reduce depend aens on benefits. We conducted analysis where we used statistical techniques to match participants and nonparticipants and compare outcomes. Our preliminary analysis found that ssi participants had on average an increase in earnings of about 1,600 per year compared to similar nonparticipants. Further, we found that from 2002 through 2015, five years after participating in the ticket. About 4 of ssi participants will left the disability roles due to earnings from their work compared to 2 of similar nonparticipants. Nonetheless, we also found that 51 did not report any earnings at all. They face a number of dis incentives, such as loss of cash and medical benefits, two, complexity of rules, and, three, fear of overpayments. Overpayments can occur when beneficiaries who work do not timely report earnings to ssa or ssa delays in adjusting their benefit amounts. Overpayments are more common for ssi recipients, and especially those who are working. Ssa estimated that in fiscal year 2019, it made approximately 4. 6 billion in ssi overpayments. We estimate that from 2002 through 2015 ticket participants were twice as likely to receive overpayments as similar non participants and that includes both ssi and di participants. Overpayments may be especially burdensome to ssi recipients because they may not be aware they were overpaid and may have spent the money. Sss Inspector General have made recommendations, but challenges remain. In april of 2020 we recommended that ssa develop a process in measure the effectiveness of its corrective actions for improper payments. Ssa agreed this priority recommendation remeans unimplemented. Sss oig has reported they have not resolved lags in reported earnings, despite making some progress over the years. Ssa is taking steps to address overpayments. For fiscal year 2021, they named improving Program Integrity as a focus area. For example, ssa has online tools that allow individuals to make wage reports making it easier for recipients to comply with requirements. As Congress Considers reforms to ssi, opportunities exist to encourage work for those who are able and want to and redu