COLUMBUS, Ohio - Republican Valley Congressman Mike Rulli and Pennsylvania Democratic Congressman Chris Deluzio have introduced legislation to protect Supplemental Security Income (SSI) benefits for disaster victims.

The Protecting Supplemental Security Income for Disaster Victims Act aims to ensure that SSI recipients don't lose or have their benefits reduced when they receive settlement payments after a disaster.

This legislation was drafted in response to the East Palestine train derailment in February of 2023, which forced many residents to pay out of pocket for emergency housing, medical care and other needs.

Eventually, a $600 million settlement was reached to compensate residents for the harm caused by the derailment.

According to a press release, constituents have since reached out about the unintended consequences facing SSI recipients who accepted these settlement payments.

According to the release, receiving the settlement funds triggered a reduction or complete loss of SSI benefits for some recipients.

"Whether the settlement comes from a train derailment, a personal injury or another disaster, our most vulnerable citizens should not be forced to choose between necessary compensation and fixed income. No one should see their SSI benefits reduced, clawed back or eliminated simply because they accepted funds intended to help them recover," Rulli said.

Deluzio echoed this sentiment.

"Seniors dealing with the fallout of a disaster like this should not see their Social Security earned benefits lowered because they unexpectedly got money in a settlement," Deluzio said.

The legislation would ensure that settlement payments are exempt from being counted as income or resources when determining SSI eligibility and benefit amounts.

The bill is aligned with IRS guidance on the treatment of settlement funds for tax purposes and covers both the East Palestine settlement and any future settlements received for personal injury, physical sickness or damage or depreciation of property.