American Recovery and Reinvestment Act (ARRA) of 2009
by: Legal Aid Service of Northeastern Minnesota-Duluth
A legal question and answer line for Seniors. DEAR SENIOR LEGAL LINE:
I have heard that Social Security beneficiaries will receive a one-time $250 payment from the federal government to help stimulate the economy. Is this true? If so, who will get the money and when will they get it?
Signed, Penny
DEAR PENNY:
It is true. On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act (ARRA) of 2009. Among other things, this new legislation provides a one-time payment of $250 to each of the more than 60 million Social Security and Supplement Security Income (SSI) beneficiaries. The act authorizes $789 billion dollars in new federal spending to provide this one-time payment as well as to save or create jobs, reduce taxes to low or moderate income households, protect Medicaid beneficiaries from state cuts, and to invest in the nation's infrastructure.
Anyone who received a Social Security, SSI, VA, or Railroad Retirement benefits in November or December 2008 or January 2009, is eligible for the one-time payment. However, some SSI recipients will not get the one time payment. If a person resides in a nursing home, whose sole source of income is SSI and whose care is prominently paid by Medical Assistance and receives a monthly SSI benefit of only $30 will not get the one-time payment. Also, people getting SSI who live in publicly owned or operated residential facilities (such as municipal nursing homes, jails, or prisons) will not get a one-time payment.
According to the Social Security Administration, notices about the payment will go out in April 2009 to all people who are eligible for the payment. The payments will be sent out in May 2009 or in the first week of June 2009. The payment will be in the same form as the recipient's regular Social Security payment. Thus, if you normally receive your Social Security benefits through direct deposit, you should receive your stimulus payment by direct deposit.
If you receive Social Security and another benefit, such as Veteran's Administration (VA) pension, you will only receive a single one-time payment. You will not get two payments. No one will receive more than one payment. Spouses will each receive their own payment. The payment will not affect eligibility for or the amount of Section 8 housing subsidies. The AARA specifically states that the payment will not count towards eligibility or the amount of any entitlement benefits funded wholly or in part with federal funds. Section 8 housing if funded by federal funds. Thus, if you live in Section 8 housing, the payment will not affect your housing.
If you owe any federal or state debts, except for SSA or SSI overpayments, the one-time payment can be recouped to repay the federal or state debts.
If you are eligible, you do not have to do anything in order to receive the payment. Look for the notice in April and the payment to be in May or June 2009.
This column is written by the Senior Citizens' Law Project. It is not meant to give complete answers to individual questions. If you are 60 years of age or older and live within the Minnesota Arrowhead Region, you may contact us with questions for legal help by writing to: Senior Citizens' Law Project, Legal Aid Service of Northeastern Minnesota, 302 Ordean Bldg., Duluth, MN 55802. Please include a phone number and return address. To view previous articles, go to: www.lasnem.org. Reprints by permission only.
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