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Federal Supreme Court to Hear Puerto Rico SSI Case on Friday

The case had been scheduled for last Friday.

The U.S. Supreme Court will hear next Friday the case on the eligibility of Puerto Rico residents for Supplemental Security Income (SSI).

The case had been scheduled for review last Friday.  

The U.S. Department of Justice filed a certiorari before the U.S. Supreme Court in the case of Luis Vaello Madero, a former New York resident who moved to Loiza and against whom Social Security (SS) wanted him to return $28,000 for failing to report that he had moved to the island where he does not receive SSI benefits.

Both Puerto Rico Federal District Court Judge Gustavo Gelpí and the Boston-based First Circuit Court of Appeals ruled a few months ago that Vaello Madero did not have to repay the money.

The federal Department of Justice insists that Vaello Madero must return the money after moving from New York to Puerto Rico where U.S. citizens do not receive the benefits of that plan.

"It is undisputed that the classification of Puerto Rico residents under the SSI program is subject to equal protection review. Under a rational basis, this analysis asks whether the categorization itself, rather than any burden it imposes on an individual's ability to travel, is rationally related to a legitimate government interest," reads part of Vaello Madero's brief.

It states that eligibility for SSI benefits does not depend on current or past contributions like some insurance programs.

"It is irrelevant to SSI eligibility whether a person resides in New York and pays federal income taxes for much of their adult life before moving to Puerto Rico (like Vaello Madero), or whether they live in Puerto Rico their entire life before moving to New York, where they would be eligible for SSI benefits," he said.

He noted that as the First Circuit concluded, Puerto Rico has regularly contributed more to the U.S. treasury than many states, although unlike those states, it has no representatives who can vote in Congress.

He stated that from 1998 to 2006, Puerto Rico contributed more annually to the federal treasury than Vermont, Wyoming, North Dakota, Montana and Alaska, as well as the Northern Mariana Islands, and continues to pay substantial amounts into the federal treasury through the federal Internal Revenue Service (IRS).

"Moreover, nothing in the statute ties SSI eligibility to any provision of the tax code. Congress could decide tomorrow to extend all federal income tax obligations to Puerto Rico and residents of Puerto Rico will remain ineligible for SSI. Congress can unilaterally extend additional tax burdens to Puerto Rico residents at will, even after the enactment of Social Security," the brief notes.

He stated that the Supreme Court has applied rational basis review under equal protection principles to strike down the legislation. 

Meanwhile, the federal Department of Justice states that "the importance of the question presented underscores the need for this Court's review. SSI is an important federal program and its extension to Puerto Rico would have significant consequences. According to one estimate cited by the Court of Appeals, extending SSI to Puerto Rico could apply to more than 300,000 Puerto Rican residents each month...The Social Security Administration estimates that extending SSI to Puerto Rico would cost approximately $23 billion over the next ten years."

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