II 

117TH CONGRESS 

1ST SESSION S. 2575 

To help individuals receiving disability insurance benefits under title II of 

the Social Security Act obtain rehabilitative services and return to the 

workforce, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 30, 2021 

Mr. COTTON (for himself and Mr. RUBIO) introduced the following bill; which 

was read twice and referred to the Committee on Finance 

A BILL 

To help individuals receiving disability insurance benefits 

under title II of the Social Security Act obtain rehabilitative services and return to the workforce, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Social Security Disability Insurance Return to Work 

6 Act’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 


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Sec. 1. Short title; table of contents. 

Sec. 2. Information relating to the Ticket to Work and Self-Sufficiency Program. 

Sec. 3. Revising disability classifications. 

Sec. 4. Requiring periodic continuing disability reviews for certain beneficiaries. 

Sec. 5. Regulations related to disability classifications and CDRs. 

Sec. 6. Time-limiting disability benefits for MIE and MIL individuals. 

Sec. 7. Encouraging work by MIE and MIL individuals. 

Sec. 8. Increased funding for continuing disability reviews. 

Sec. 9. Work opportunity tax credit for hiring social security disability beneficiaries. 

1 SEC. 2. INFORMATION RELATING TO THE TICKET TO WORK 

2 AND SELF-SUFFICIENCY PROGRAM. 

3 Section 1148(d) of the Social Security Act (42 U.S.C. 

4 1320b–19(d)) is amended by adding at the end the fol5 lowing: 

6 ‘‘(8) PROGRAM ADVERTISEMENT.—The Com7 missioner of Social Security shall disseminate infor8 mation relating to participation in the Program to 

9 each disabled beneficiary at the time of such bene10 ficiary’s entitlement to benefits and every 6 months 

11 thereafter.’’. 

12 SEC. 3. REVISING DISABILITY CLASSIFICATIONS. 

13 Section 221 of the Social Security Act (42 U.S.C. 

14 421) is amended by adding at the end the following new 

15 subsection: 

16 ‘‘(n)(1) Not later than 1 year after the date of the 

17 enactment of this subsection, the Commissioner of Social 

18 Security shall establish a system for classifying any indi19 vidual who is determined to be entitled to disability insur20 ance benefits under this title or to monthly benefits under 


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1 section 202 by reason of being under a disability in the 

2 following manner: 

3 ‘‘(A) An individual shall be classified as ‘med4 ical improvement expected’ if the impairment or 

5 combination of impairments causing the individual 

6 to be disabled is expected to medically improve to 

7 the point where the individual will no longer be dis8 abled in 12 to 24 months. 

9 ‘‘(B) An individual shall be classified as ‘med10 ical improvement likely’ if the impairment or com11 bination of impairments causing the individual to be 

12 disabled is expected to medically improve to the 

13 point where the individual will no longer be disabled 

14 in 25 months to 60 months. 

15 ‘‘(C) An individual shall be classified as ‘med16 ical improvement possible’ if the impairment or com17 bination of impairments causing the individual to be 

18 disabled is not expected to medically improve to the 

19 point where the individual will no longer be disabled 

20 in 60 months, but future improvement is possible. 

21 ‘‘(D) An individual shall be classified as ‘med22 ical improvement not expected’ if the individual has 

23 an impairment or combination of impairments that 

24 is chronic or progressive with permanent, irreversible 

25 structural or functional loss, and for which there is 


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1 no known effective therapy, treatment, or surgical 

2 intervention that could result in medical improve3 ment to the point where the individual is no longer 

4 disabled. 

5 ‘‘(2) In classifying an individual under the system es6 tablished under this subsection, the Commissioner of So7 cial Security shall not classify an individual as ‘medical 

8 improvement not expected’ solely by reason of such indi9 vidual’s age where a lesser classification is appropriate. 

10 ‘‘(3) Notwithstanding section 205(b)(1) or subsection 

11 (c)(1) or (d) of this section, there shall be no review of, 

12 or right to appeal, a classification made under the system 

13 established under this subsection.’’. 

14 SEC. 4. REQUIRING PERIODIC CONTINUING DISABILITY RE15 VIEWS FOR CERTAIN BENEFICIARIES. 

16 (a) IN GENERAL.—Section 221(i) of the Social Secu17 rity Act (42 U.S.C. 421(i)) is amended— 

18 (1) by amending paragraph (1) to read as fol19 lows: 

20 ‘‘(1)(A) In the case of any individual who has not 

21 attained age 63, is determined to be under a disability, 

22 and is classified as ‘medical improvement possible’ or 

23 ‘medical improvement not expected’, the applicable State 

24 agency or the Commissioner of Social Security (as may 


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1 be appropriate) shall, for purposes of determining such in2 dividual’s continuing disability— 

3 ‘‘(i) if the individual is classified as ‘medical im4 provement possible’, conduct a review to determine 

5 whether the individual remains under a disability 

6 during the 5th year following the first month after 

7 the individual’s waiting period (as defined in section 

8 223(c)(2)); and 

9 ‘‘(ii) if the individual is classified as ‘medical 

10 improvement not expected’, conduct a review to de11 termine whether the individual remains under a dis12 ability during the 10th year following the first 

13 month after the individual’s waiting period (as so 

14 defined). 

15 ‘‘(B) In addition to the continuing disability reviews 

16 required under subparagraph (A) and notwithstanding 

17 how an individual is classified under the system estab18 lished by the Commissioner of Social Security under sub19 section (n), if the Commissioner has reason to believe that 

20 an individual that has been determined to be under a dis21 ability is not under a disability, the Commissioner may 

22 review such individual’s case at such time and in such 

23 manner as the Commissioner determines appropriate ex24 cept that the Commissioner shall not initiate a review on 


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1 the basis of income earned by an individual who is a par2 ticipant in the process established under section 223(l). 

3 ‘‘(C) Reviews of cases which are required or per4 mitted under this paragraph shall be in addition to, and 

5 shall not be considered as a substitute for, any other re6 views which are required or provided for under or in the 

7 administration of this title.’’; 

8 (2) by striking paragraph (2); and 

9 (3) by redesignating paragraphs (3) through 

10 (5) as paragraphs (2) through (4), respectively. 

11 (b) STANDARD OF REVIEW FOR CONTINUING DIS12 ABILITY REVIEWS.— 

13 (1) IN GENERAL.—Section 223(f) of the Social 

14 Security Act (42 U.S.C. 423(f)) is amended— 

15 (A) in paragraph (4), by striking the pe16 riod at the end and inserting ‘‘; or’’; 

17 (B) by inserting after paragraph (4) the 

18 following new paragraph: 

19 ‘‘(5) in the case of a continuing disability re20 view under section 221(i), evidence that would be 

21 sufficient to support a finding in an initial deter22 mination that the individual is not under a disability 

23 and is able to engage in substantial gainful activ24 ity.’’; and 


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1 (C) in the flush matter at the end, by in2 serting ‘‘, except that, in the case of a con3 tinuing disability review under section 221(i), 

4 the Commissioner shall not consider the fact 

5 that an individual is engaged in substantial 

6 gainful work as part of the process established 

7 under subsection (l) as evidence that the indi8 vidual is able to engage in substantial gainful 

9 activity’’ after ‘‘secured by the Commissioner of 

10 Social Security’’. 

11 (2) CONFORMING AMENDMENT TO DEFINITION

12 OF DISABILITY.—Section 223(d)(2) of the Social Se13 curity Act (42 U.S.C. 423(d)(2)) is amended— 

14 (A) in subparagraph (A), by striking ‘‘An 

15 individual’’ and inserting ‘‘Subject to subpara16 graph (D), an individual’’; and 

17 (B) by adding at the end the following new 

18 subparagraph: 

19 ‘‘(D) In the case of a continuing disability re20 view under section 221(i), an individual may be 

21 found to be under a disability even though the indi22 vidual is engaged in substantial gainful work as part 

23 of the process established under subsection (l).’’. 


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1 SEC. 5. REGULATIONS RELATED TO DISABILITY CLASSI2 FICATIONS AND CDRS. 

3 The Commissioner of Social Security shall promul4 gate or revise, as appropriate, regulations relating to the 

5 determination, classification, and review of the disability 

6 status of individuals who apply for or receive disability in7 surance benefits under title II of the Social Security Act 

8 and related provisions of agency guidance to carry out sec9 tion 3 and the amendments made by section 4. 

10 SEC. 6. TIME-LIMITING DISABILITY BENEFITS FOR MIE AND 

11 MIL INDIVIDUALS. 

12 Section 223 of the Social Security Act (42 U.S.C. 

13 423) is amended— 

14 (1) in subsection (a)(1), in the flush language 

15 after and below subparagraph (E), by striking ‘‘sub16 section (e)’’ and inserting ‘‘subsections (e) and (k)’’; 

17 and 

18 (2) by adding at the end the following new sub19 section: 

20 ‘‘Time-Limited Disability Benefits 

21 ‘‘(k)(1) In the case of an individual who files an appli22 cation for disability insurance benefits under this section 

23 or for monthly benefits under section 202 by reason of 

24 being under a disability for any month that begins on or 

25 after the date that is 1 year after the date of the enact26 ment of the Social Security Disability Insurance Return 


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1 to Work Act, is determined to be under a disability, and 

2 is classified by the Commissioner of Social Security as 

3 ‘medical improvement expected’ or ‘medical improvement 

4 likely’, the termination month applicable to the individual 

5 shall be— 

6 ‘‘(A) if the individual has been classified as 

7 ‘medical improvement expected’, the 23rd month fol8 lowing the first month after the individual’s waiting 

9 period (as defined in subsection (c)(2)); or 

10 ‘‘(B) if the individual has been classified as 

11 ‘medical improvement likely’, the 59th month fol12 lowing the first month after the individual’s waiting 

13 period (as so defined). 

14 ‘‘(2)(A)(i) For purposes of this paragraph, the term 

15 ‘timely reapplication’ means an application for disability 

16 insurance benefits under this section or for monthly bene17 fits under section 202 by reason of being under a disability 

18 that is submitted— 

19 ‘‘(I) by an individual who is a recipient of such 

20 benefits; and 

21 ‘‘(II) during the period that is 14 months be22 fore the end of the termination month applicable (or 

23 most recently applicable) to the individual under 

24 paragraph (1) as of the date of such application and 


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1 ending with the date that is 12 months before the 

2 end of such termination month. 

3 ‘‘(ii) Notwithstanding clause (i), the Commissioner of 

4 Social Security may deem an application for disability in5 surance benefits under this section or for monthly benefits 

6 under section 202 by reason of being under a disability 

7 submitted by an individual who is a recipient of such bene8 fits that is submitted after the period described in clause 

9 (i)(II) to be a timely reapplication if— 

10 ‘‘(I) the individual can show good cause for why 

11 the application was not submitted during such pe12 riod; and 

13 ‘‘(II) the application is submitted not later than 

14 6 months before the end of the termination month 

15 applicable (or most recently applicable) to the indi16 vidual under paragraph (1) as of the date of such 

17 application. 

18 ‘‘(B)(i) An individual who submits a timely reapplica19 tion and who is determined to be under a disability shall 

20 be deemed to have satisfied the waiting period applicable 

21 under subsection (c)(2). 

22 ‘‘(ii)(I) If the Commissioner of Social Security fails 

23 to make an initial determination with respect to the timely 

24 reapplication of an individual who is a recipient of dis25 ability insurance benefits under this section or monthly 


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1 benefits under section 202 by reason of being under a dis2 ability before the end of the termination month applicable 

3 to the individual as of the date of such reapplication, such 

4 individual shall continue to be entitled to such benefits 

5 until an initial determination with respect to such timely 

6 reapplication is made. 

7 ‘‘(II) If the Commissioner of Social Security makes 

8 an initial adverse determination with respect to the timely 

9 reapplication of an individual who is a recipient of dis10 ability insurance benefits under this section or monthly 

11 benefits under section 202 by reason of being under a dis12 ability and such individual files a timely request for a 

13 hearing under section 221(d), such individual may elect 

14 to have the payment of such benefits (as well as any other 

15 benefits payable under this title or title XVIII on the basis 

16 of such individual’s entitlement to such benefits) continue 

17 in the same manner and subject to the same conditions 

18 as an election made under subsection (g). 

19 ‘‘(C) For purposes of reviewing a timely reapplication 

20 submitted by an individual who is a recipient of disability 

21 insurance benefits under this section or monthly benefits 

22 under section 202 by reason of being under a disability— 

23 ‘‘(i) the fact that the individual was previously 

24 found to be under a disability shall have no evi25 dentiary weight; 


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1 ‘‘(ii) the fact that the individual participated in 

2 the process established under subsection (l) may be 

3 taken into account for purposes of determining 

4 whether such individual is under a disability; and 

5 ‘‘(iii) subsection (f) shall not apply.’’. 

6 SEC. 7. ENCOURAGING WORK BY MIE AND MIL INDIVID7 UALS. 

8 (a) IN GENERAL.—Section 223 of the Social Security 

9 Act (42 U.S.C. 423), as amended by section 6, is further 

10 amended— 

11 (1) in subsection (a)(2), by striking ‘‘section 

12 202(q) and section 215(b)(2)(A)(ii)’’ and inserting 

13 ‘‘subsection (l) and sections 202(q) and 

14 215(b)(2)(A)(ii)’’; and 

15 (2) by adding at the end the following new sub16 section: 

17 ‘‘Treatment of Work Performed by Certain Disabled 

18 Individuals 

19 ‘‘(l)(1) The Commissioner of Social Security shall es20 tablish a process whereby an eligible individual who is enti21 tled to a disability insurance benefit under this section 

22 may elect to return to employment and receive an adjusted 

23 disability insurance benefit amount (as determined pursu24 ant to paragraph (3)). 


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1 ‘‘(2)(A) For purposes of this subsection, the term ‘eli2 gible individual’ means an individual who has been classi3 fied as ‘medical improvement expected’ or ‘medical im4 provement likely’. 

5 ‘‘(B) Participation by an eligible individual in the 

6 process established under this subsection shall be sus7 pended if such individual has no reported wages or self8 employment income for the 4 preceding calendar quarters 

9 (as defined in section 213(a)(1)). 

10 ‘‘(3)(A) For purposes of subsection (a)(2), the 

11 amount of the disability insurance benefit provided to an 

12 eligible individual who has elected to return to employment 

13 for any month shall be equal to— 

14 ‘‘(i) in the case of an individual who has aver15 age monthly earnings (as determined under subpara16 graph (B)) equal to or less than the level of monthly 

17 earnings established by the Commissioner to rep18 resent substantial gainful activity, the amount other19 wise applicable for such individual under subsection 

20 (a)(2); or 

21 ‘‘(ii) in the case of an individual who has aver22 age monthly earnings (as determined under subpara23 graph (B)) that are in excess of the level of monthly 

24 earnings established by the Commissioner to rep25 resent substantial gainful activity, the amount of the 


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1 disability insurance benefit that would otherwise 

2 apply for such individual under subsection (a)(2) re3 duced (but not below zero) by an amount equal to 

4 50 percent of the excess of such individual’s average 

5 monthly earnings over the level of monthly earnings 

6 established by the Commissioner to represent sub7 stantial gainful activity. 

8 ‘‘(B)(i) The average monthly earnings for an eligible 

9 individual shall be equal to the quotient of— 

10 ‘‘(I) the total amount of wages and self-employ11 ment income for such individual in any eligible 

12 months during the 2 calendar quarters (as defined 

13 in section 213(a)(1)) that precede the most recently 

14 completed calendar quarter; and 

15 ‘‘(II) the total number of eligible months during 

16 such 2-calendar-quarter period. 

17 ‘‘(ii) For purposes of clause (i), the term ‘eligible 

18 month’ means any month subsequent to the month in 

19 which an eligible individual became entitled to a disability 

20 insurance benefit. 

21 ‘‘(4) For purposes of paragraph (3)(B), wages and 

22 self-employment income of an individual shall be deter23 mined based on relevant information for such individual 

24 as provided by the State agency responsible for the admin25 istration of State unemployment compensation law. 


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1 ‘‘(5) For purposes of an eligible individual who has 

2 elected to return to employment under this subsection, any 

3 services performed or earnings derived from services dur4 ing the period of such participation shall not be considered 

5 for purposes of demonstrating an individual’s ability to en6 gage in substantial gainful activity under subsection (d)(4) 

7 and shall not be considered substantial gainful activity for 

8 purposes of subsection (e). 

9 ‘‘(6) For purposes of this title, the disability insur10 ance benefit received by an individual under this sub11 section shall not be applied for purposes of determining 

12 any monthly benefits payable to any other individuals enti13 tled to benefits for any month based on the wages and 

14 self-employment income of such individual.’’. 

15 (b) CONFORMING AMENDMENT.—Section 

16 221(m)(2)(B) of the Social Security Act (42 U.S.C. 

17 421(m)(2)(B)) is amended by inserting ‘‘(unless such indi18 vidual is participating in the process established under 

19 section 223(l))’’ before the period. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to benefits payable for months be22 ginning on or after April 1, 2022. 


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1 SEC. 8. INCREASED FUNDING FOR CONTINUING DISABILITY 

2 REVIEWS. 

3 Notwithstanding any other provision of law, for any 

4 calendar year after 2021— 

5 (1) the Commissioner of Social Security shall 

6 determine the amount of any reduction in expendi7 tures from the Federal Disability Insurance Trust 

8 Fund (as defined in section 201(b) of the Social Se9 curity Act (42 U.S.C. 401(b))) during the preceding 

10 calendar year by reason of the provisions of this Act 

11 and the amendments made by this Act; and 

12 (2) 10 percent of the amount determined under 

13 paragraph (1) shall be authorized to be made avail14 able from the Federal Disability Insurance Trust 

15 Fund for continuing disability reviews (as defined in 

16 section 201(g)(1)(A) of the Social Security Act (42 

17 U.S.C. 401(g)(1)(A))). 

18 SEC. 9. WORK OPPORTUNITY TAX CREDIT FOR HIRING SO19 CIAL SECURITY DISABILITY BENEFICIARIES. 

20 (a) IN GENERAL.—Section 51(d) of the Internal Rev21 enue Code of 1986 is amended— 

22 (1) in paragraph (1)— 

23 (A) in subparagraph (I), by striking ‘‘or’’; 

24 (B) in subparagraph (J), by striking the 

25 period and inserting ‘‘, or’’; and 

26 (C) by adding at the end the following: 


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1 ‘‘(K) a qualified social security disability 

2 insurance beneficiary.’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(16) QUALIFIED SOCIAL SECURITY DISABILITY

5 INSURANCE BENEFICIARY.—The term ‘qualified so6 cial security disability insurance beneficiary’ means 

7 any individual who is certified by the designated 

8 local agency as being entitled to disability insurance 

9 benefits under title II of the Social Security Act for 

10 any month ending within the 60-day period ending 

11 on the hiring date.’’. 

12 (b) EFFECTIVE DATE.—The amendments made by 

13 subsection (a) shall apply to individuals who begin work 

14 for the employer after December 31, 2021. 

Æ 


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