To amend title XVI of the Social Security Act to provide that the existing requirement for deeming a parent's income and resources to his or her children under age 18 shall not apply in the case of certain severely disabled children, and to provide that the benefit payable to such children under such title shall equal the personal needs allowance.

Amends title XVI (Supplemental Security Income) (SSI) of the Social Security Act to exclude parental income and resources from the determination of a disabled child's SSI eligibility if such child requires the level of care provided in a hospital, skilled nursing facility, or intermediate care facility, but care outside such a facility is appropriate and, when considered with the SSI benefits to which such child is entitled, less costly than care within such a facility. Specifies the SSI benefit rate to which such children are entitled.