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The Immigrant Policy Project

Supplemental Security Income
01/09/98

The 1996 federal welfare reform barred most legal immigrants from receiving Supplemental Security Income (SSI), a cash assistance program for the elderly, blind and disabled. Many state policymakers were concerned about the loss of assistance to long-term residents who often had no other source of support. States such as Illinois, Nebraska, Washington and Colorado provided access to state-funded programs to fill the gap created by the federal government. In 1997, Congress reversed most of the cuts, restoring benefits to those receiving benefits on August 22, 1996, and those who are or become disabled. Immigrants no longer covered are those who become elderly (65 years of age) after August 22, 1996, and immigrants who arrive after August 22, 1996, unless they meet one of the law's exceptions.

Background

Supplemental Security Income is a federal income support program administered by the Social Security Administration for low-income blind, elderly and disabled individuals. In addition to being low-income, applicants must be at least one of the following: elderly (65 years or older), blind (20/200 with corrective lenses), or disabled (physically or mentally unable to obtain "substantial gainful employment" for 12 continuous months). Immigrants have been eligible for SSI on the same basis as citizens, after five years of residence in the United States. During these first five years, the income of the immigrants' sponsor was counted toward the income of the immigrant for eligibility determinations. The following categories of immigrants were previously eligible to receive SSI: lawful permanent residents; refugees, asylees, those granted withholding of deportation, parolees, Cuban and Haitian entrants, conditional entrants; aliens granted indefinite voluntary departure, stay of deportation, suspension of deportation and order of supervision; Family Unity, deferred enforced departure; residents since 1972; and PRUCOL (those residing in the United States with the permission of the U.S. Immigration and Naturalization Service). Immigrants granted temporary protected status, nonimmigrants and unauthorized immigrants were not eligible.

The Federal Welfare Law of 1996

The Personal Responsibility and Work Reconciliation Act of 1996 barred immigrants from eligibility for SSI benefits until they achieved citizenship or 40 quarters of qualifying work. Exemptions were given to 1) refugees, asylees, and those whose deportation has been withheld; and 2) veterans, active duty military, and their spouses and dependents. Originally, federal funding for immigrant SSI benefits was to be terminated on August 22, 1997. However, the 1997 disaster relief law, enacted on June 12, 1997, provided an additional $221 million to extend SSI benefits to eligible immigrants through September 30, 1997. On August 5, 1997, the federal Balanced Budget Act was signed, restoring SSI to most immigrants at risk of losing their benefits (more than 350,000 individuals, according to the Social Security Administration).

The Balanced Budget Act of 1997

The Balanced Budget Act of 1997 (P.L. 105-33) reversed $11.4 billion of the $23.8 billion in immigrant benefits stripped away by the 1996 welfare reform law. The act restored SSI to individuals who were receiving SSI benefits on August 22, 1996, and to immigrants lawfully residing in the United States as of that date who are or become disabled. Those who remain ineligible for SSI are 1) low-income immigrants residing in the United States as of August 22, 1996, who become elderly (65 years of age) but are not disabled; and 2) those who arrive after August 22, 1996, unless they meet one of the law's exemptions.

Other provisions:

  •  Current recipients who are PRUCOL may retain their SSI and Medicaid benefits until September 30, 1998. This helps approximately 24,000 recipients who would otherwise lose benefits this year because they are not included in the new definition of "qualified alien." ("Not qualified" aliens includes undocumented or illegal aliens, nonimmigrants, and PRUCOL immigrants, who are immigrants living in the United States for an indefinite period under INS discretionary authority).
  • The law specifically retains "derivative eligibility," that is, immigrants receiving SSI may retain eligibility for Medicaid.
  • The act lengthens from five to seven years the period during which SSI eligibility is guaranteed to refugees, asylees and aliens whose deportation has been withheld. Cuban and Haitian Entrants and Amerasians (children born in Southeast Asia of U.S. military or civilian personnel during the Vietnam War) have been added to this exemption.
  • Certain American Indians living along the Canadian border who have legal permanent resident status are exempted from the SSI and Medicaid bar.
  • The act also restored SSI and Medicaid to recipients who had applied prior to 1979, the year that the Social Security Administration began asking for proof of citizenship and immigration status. This provision affected many citizens as well as immigrants who were at risk of losing benefits because they had no birth certificate or other documentation proving citizenship or naturalization.

Litigation In March 1997, the City of New York filed suit against the federal government, challenging the constitutionality of denying food stamp and cash assistance benefits to elderly and disabled legal immigrants who were in the United States prior to passage of the federal law. The case asserted that the welfare act discriminated on the basis of alienage and denied equal protection to lawful permanent residents. The District Court upheld the constitutionality of the welfare law, but did rule that the Social Security Administration must provide SSI to those who had applied for benefits before the enactment of the law on August 22, 1996.

A class action lawsuit was filed in Illinois in July 1997, to prevent termination of benefits for immigrants who had applied for but had not attained citizenship due to the INS backlog on the basis that they have been denied due process. The court ruled that Congress has authority to determine benefit eligibility for immigrants; the case is on appeal.

State Action

Prior to enactment of the Balanced Budget Act, states considered ways to compensate for lost SSI benefits. States examined three options: access to or expansion of the state's general assistance program, access to or expansion of the state's disability program, or creation of a new program. Many states were planning to provide state-funded SSI benefits to individuals who would lose federal SSI as a result of their immigration status. It was predicted that state resources, on average, would provide approximately one-half of the federal monthly benefit. For example:

  • Colorado enacted legislation that will allow legal immigrants, regardless of their date of entry, to be eligible for state-funded general assistance. The Old Age Pension, Aid to the Blind, and Aid to the Needy Disabled programs will be used to assist eligible individuals.
  • Minnesota will provide state-funded general assistance to legal immigrants who were residing in the state as of March 1, 1997, and who are pursuing citizenship. The state will also provide for future immigrants that become elderly or disabled after arriving in the state.
  • Nebraska also plans to provide for elderly and disabled immigrants regardless of their date of entry. Recipients will be subject to deeming.
  • Illinois allocated $10 million for an SSI replacement program.

Conclusion

With the passage of the Balanced Budget Act, a significant cost-shift to states has been avoided. The restoration of federal SSI benefits to pre-August 22, 1996, immigrants will provide states with new opportunities for state funds that were set aside to provide for these individuals. During the next legislative session, states are likely to review these allocations and consider whether to replace other social services that are no longer provided by the federal government.

Sources and References

-- Guide to Alien Eligibility for Federal Programs, National Immigration Law Center, (Los Angeles, CA)-- Immigrant Policy News ... State LegisLine, Immigrant Policy Project, NCSL (Washington, D.C.)

Contacts and Referrals

Social Security Administration
500 E Street, SW, Suite 872
Washington, DC 20254
tel: 202-358-6030
fax: 202-358-6074
www.ssa.gov/welfare/welfare.html

National Senior Citizens Law Center
1101 14th Street, NW, #400
Washington, DC 20005
tel: 202-289-6976
fax: 202-289-7224
http://www.nsclc.org/

National Immigration Law Center
1102 South Crenshaw Boulevard, Suite 101
Los Angeles, California 90019
tel: 213-938-6452
fax: 213-964-7940

"Welfare Reform and Immigrants" is published by the Immigrant Policy Project of the State and Local Coalition on Immigration. Members of the State and Local Coalition are: the National Governors' Association, the National Conference of State Legislatures, the United States Conference of Mayors, the National League of Cities, the National Association of Counties, and the American Public Welfare Association. The Project is funded by the Andrew W. Mellon Foundation. This issue brief series is supported by the Ford Foundation. The Project is located in the Washington, D.C. office of the National Conference of State Legislatures.

Contacts

NCSL: Sheri Steisel (202) 624-5400
NACo: Marilina Sanz (202) 393-6226
NGA: Nolan Jones (202) 624-5300
APWA: Elaine Ryan (202) 682-0100
USCM: Laura Waxman (202) 293-7330
NLC: Janet Quist (202) 626-3000

Staff
Editor: Ann Morse
Writers: Jeremy D. Meadows
Shawn Porter Heusser


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