Order Reducing Aid to Disabled Is Rescinded

Stung by a political furor, the Reagan Administration on Friday swiftly rescinded an order reducing welfare benefits for elderly, blind and disabled people receiving hot meals, blankets, shelter and other free aid from charitable groups.

Otis R. Bowen, secretary of health and human services, announced that the order would be revoked immediately with the expectation that Congress would soon approve long-term legislation banning such cuts in welfare benefits.

The Administration acted a few hours after disclosure of the Social Security Administration’s order in Friday’s editions of the New York Times. The report prompted protests from congressional Democrats and Republicans that the order was an outrage.

‘Terminal Sleaze’

“This Administration is on its way out, and good riddance, but what a way to go,” said Sen. Daniel Patrick Moynihan (D-N.Y.), who called the reduction of benefits “terminal sleaze.”

The short-lived order took effect on Oct. 1 but was never publicly announced.

The order required that non-cash assistance from churches and other private, nonprofit charitable organizations be assessed at its market value, counted as income and deducted dollar-for-dollar from Supplemental Security Income payments.

Maximum federal benefits under the SSI program are $340 a month for individuals and $510 monthly for couples. One estimate held that the new Social Security policy would have resulted in monthly cuts of as much as $113 for individuals and $170 for couples.

Exemption Expired

The law that had exempted charitable assistance from being counted as income since May, 1983, expired on Sept. 30. Legislation to extend it was approved late Thursday by the House Ways and Means Committee and on Friday by the Senate Finance Committee, and early floor action is expected in both chambers.

Despite repeated telephone calls, Social Security officials could not be reached for comment.

Chuck Kline, a Bowen spokesman, said the Social Security order was “perplexing” because the Reagan Administration’s proposed fiscal 1988 budget contained a request for permanent extension of the exemption for non-cash assistance to the disabled.