<<<Back to News Center 2012

Thursday, February 9, 2012

Pierluisi Seeks Committee Hearing on Legislation to Extend Supplemental Security Income Program to Puerto Rico and Other Territories

WASHINGTON, DC- Resident Commissioner Pedro Pierluisi sent a letter today to the
Chairman and Ranking Democratic Member of the House Committee on Ways and Means’ Subcommittee on Human Resources, requesting a hearing on legislation he recently introduced to extend the Supplemental Security Income (SSI) program to Puerto Rico and other territories. The letter was signed by Reps. José Serrano (D-NY), Nydia Velázquez (D-NY), Madeleine Bordallo (D-GU), Donna Christensen (D-VI), and Eni Faleomavaega (D-AS).

The SSI program provides monthly cash assistance to blind, disabled or elderly individuals who have limited or no income. SSI applies in all 50 states, the District of Columbia and one territory. But it has not been extended to Puerto Rico and three other territories. Instead, the federal grant program known as Aid to the Aged, Blind, and Disabled (AABD), which preceded the SSI program in the states, continues to apply in Puerto Rico

In the letter, Pierluisi requested a hearing on H.R. 3812, the Supplemental Security Income Equality Act, which he introduced on January 24th. The Resident Commissioner noted that, since 1973, delegates from the territories have introduced at least 35 bills that would extend SSI to their constituents, but no House or Senate committee has ever held a hearing to examine this issue in those 39 years.

According to the Congressional Research Service, the average monthly federal SSI payment is between $400 and $600. By contrast, the average monthly AABD payment to beneficiaries in Puerto Rico is about $70.

“The disparity is, in a word, shocking,” said Pierluisi.

The Resident Commissioner explained that Puerto Rico’s annual AABD grant from the federal government is about $33 million. The state with the highest percentage of residents living below the federal poverty line—a jurisdiction that has almost one million fewer total residents than Puerto Rico—received $742 million in SSI funding in 2010, more than 20 times as much as Puerto Rico. Moreover, the governments of the territories are legally required to meet a 25% “match” to receive their AABD block grant.

“The states, obviously, do not make any matching payments for their residents to receive SSI assistance,” noted Pierluisi.

The exclusion of the aged, blind and disabled in the four territories from the SSI program means that their governments cannot provide decent monthly payments to residents who cannot support themselves.

In the letter, Pierluisi noted that some have questioned whether extending SSI to Puerto Rico and the other territories is justified, given that SSI is funded by federal general revenues and residents of the territories are not required to pay federal income taxes on their local income. But he argued that this line of reasoning did not withstand scrutiny for at least two reasons. First, eligible residents of one territory already receive SSI. Second, over 45% of all households in the 50 states do not earn enough to pay any federal income taxes. And there is virtually no chance that an SSI recipient in the states pays federal income taxes, since SSI recipients generally cannot have assets that exceed $2,000 ($3,000 in the case of beneficiary-couples).

“We fully acknowledge the fiscal challenges that confront our nation. We also recognize that there would be a financial cost associated with extending SSI to Puerto Rico, Guam, the U.S. Virgin Islands and American Samoa. Nevertheless, we strongly believe that inclusion is the just and long overdue course of action. If that is not feasible during this session, however, Congress should at the very least act . . . so that AABD recipients in the territories can receive more reasonable monthly assistance,” the letter concluded.