This bill protects people receiving Supplemental Security Income (SSI)—a federal program that provides cash assistance to elderly, blind, and disabled individuals with limited income—from losing their benefits if they receive settlement money from disasters or accidents.

Specifically, the bill excludes settlement payments from being counted as income when determining SSI eligibility and benefit amounts. Normally, when someone receives money from a legal settlement, it counts as income and can reduce or eliminate their SSI payments. This bill creates an exception: settlement money from personal injury claims, property damage claims, or physical sickness claims won't be held against SSI recipients. The bill specifically mentions the East Palestine train derailment disaster in Ohio as an example, ensuring that victims who receive settlement payments can keep their SSI benefits without penalty.

The change applies to all future settlements of this type, not just the East Palestine case. This means if an SSI recipient receives a settlement for injuries or property damage from any disaster or accident, that money won't count against their benefits. The law takes effect immediately for new settlements and also applies retroactively to settlement payments that were already received before the law was passed, giving relief to people who may have already lost benefits due to receiving settlement money.