Establishing a gradual offset for disability beneficiaries with earnings

(a) Elimination of termination of benefits due to work activity (1) Date of termination of disability benefits; elimination of extended period of eligibility Section 223(a)(1) of the Social Security Act (42 U.S.C. 423(a)(1)) is amended, in the matter following subparagraph (E), by striking the earlier of and all that follows through the 36 months following such period of trial work in which he engages or is determined able to engage in substantial gainful activity and inserting the third month following the earliest month after the end of such period of trial work with respect to which such individual is determined to no longer be suffering from a disabling physical or mental impairment. (2) Date of termination of child’s benefits Section 202(d)(1)(G)(i) of such Act (42 U.S.C. 402(d)(1)(G)(i)) is amended by striking the earlier of and all that follows through substantial gainful activity), and inserting the third month following the earliest month after the end of such period of trial work with respect to which such individual is determined to no longer be suffering from a disabling physical or mental impairment,. (3) Date of termination of widow’s and widower’s benefits Subsections (e)(1) and (f)(1) of section 202 of such Act (42 U.S.C. 402) are each amended, in the matter following subparagraph (E), by striking the earlier of and all that follows through the end of the paragraph and inserting the third month following the earliest month after the end of such period of trial work with respect to which such individual is determined to no longer be suffering from a disabling physical or mental impairment.. (4) Elimination of work-related termination of hospital insurance benefits Section 226(b) of such Act (42 U.S.C. 426(b)) is amended, in the matter following paragraph (2), by striking For purposes of this subsection and all that follows through the end. (5) Conforming amendment related to expedited reinstatement Section 223 of such Act (42 U.S.C. 423) is amended by striking subsection (i). (b) Benefit reduction based on earnings derived from services (1) In general Section 223(e) of such Act (42 U.S.C. 423(e)) is amended to read as follows: (e) (1) Any benefit otherwise payable to an individual for a month under subsection (d)(1)(B)(ii), (d)(6)(A)(ii), (d)(6)(B), (e)(1)(B)(ii), or (f)(1)(B)(ii) of section 202 or under subsection (a)(1) of this section shall be reduced by $1 for each $2 by which the individual’s earnings derived from services for such month exceeds the amount specified in paragraph (2) with respect to such month, except that— (A) in the case of an individual who has a period of trial work (as defined in section 222(c)), no reduction may be applied to any benefit of such individual under this title for any month prior to the third month after the end of the individual’s period of trial work; and (B) such benefit may not be reduced below $0. (2) The amount specified in this paragraph with respect to a month shall be the amount of monthly earnings derived from services established by the Commissioner (under regulations issued pursuant to section 223(d)(4)(A)) to represent substantial gainful activity in the case of a blind individual for such month. (3) In the case of a benefit otherwise payable to an individual for a month under section 202 on the basis of the wages and self-employment income of an individual whose benefit is reduced pursuant to paragraph (1), such benefit shall be reduced for such month by the same proportion as the reduction made pursuant to paragraph (1).. (2) Conforming amendment Section 223(a)(2) of such Act (42 U.S.C. 423(a)(2)) is amended by striking and section 215(b)(2)(A)(ii) and inserting, section 215(b)(2)(A)(ii), and subsection (e) of this section. (c) Ticket to Work employment networks Section 1148(h)(5) of such Act (42 U.S.C. 1320b–19(h)(5)) is amended by redesignating subparagraph (C) as subparagraph (D) and inserting after subparagraph (B) the following: (C) The Commissioner may alter requirements to receive a payment under this section to the extent that the Commissioner determines that altering such requirements is necessary to ensure that sufficient employment networks are available and that each beneficiary receiving services under the Program has reasonable access to employment services, vocational rehabilitation services, and other support services.. (d) Effective date The amendments made by this section shall apply with respect to months in calendar years 2027 through 2036.