The SSI Program stands for Supplemental Security Income and is administered by the Social Security Administration [i]. The Program pays cash to low-income Americans in two categories – those over 65 years of age and those under 65 if they are disabled or blind. The definition of disabled includes both physical and mental disabilities. Participants in the Program receive cash every month.
Maximum benefits to an individual living alone and with no Countable Income equaled $841 a month ($10,092 per year) in 2022. For a couple, the maximum was $1,261 per month ($15,132 per year). Countable Income lowers the benefits generally fifty cents per dollar of income from wages or self-employment and dollar for dollar from other benefit programs such as social security.
Individuals are eligible for the SSI Program with wages or self-employment income less than $21,204 per year and a couple at $31,284 per year [ii]. In addition to disability, age, and income eligibility standards, applicants are limited to a “Resource” value of $2,000 for individuals or $3,000 for a couple. Resource value includes cash savings and investments but excludes a home and car.
In December 2021, the SSI Program had 7.6 million [iii] participants; 85% qualified based on a disability, 14% based on age, and 1% because they were blind. The Program spent $62.0 billion in the fiscal year 2023 and $63.3 billion in 2022 [iv].
SSI Participants Over the Years
The chart above shows the number of SSI Program participants since 2000 [iii].
Participation in the Program by elderly Americans is a small portion of SSI as Social Security continues to protect most retirees in the country. Retired individuals in the SSI program do not get a sizeable old-age pension. Neither they nor a spouse worked enough years to generate a Social Security pension larger than the SSI benefit. Participation by blind individuals has remained consistent between 64,000 and 73,000 over the years. Participation by disabled individuals has increased by 20% since 2000 compared to the population growth of 18% for the same period.
Entire Welfare System
SSI is one of thirteen welfare programs. See how it fits in the entire system on the Welfare Programs Page.
SSI Improper Payments and Fraud
The Office of Management and Budget estimates an 8.7% Improper Payment rate related to the SSI Program, totaling $5.5 billion. See more information on the Welfare Fraud Page.
History of SSI
The following history of SSI was adapted from Wikipedia, SSI [v], and the Annual Statistical Supplement To The Social Security Bulletin, History of Provisions [i].
President Richard Nixon signed the Social Security Amendments of 1972, which created the SSI Program. At that time, each state had similar programs under the Aid to the Blind, Aid to the Permanently and Totally Disabled, and Aid to the Elderly. The Nixon Administration thought these programs should be federalized and run by the Social Security Administration. Thus, SSI was created to eliminate the differences between the states, including different disability standards and income and resource requirements. The benefit payment made in cash to qualified participants began at $130, and $195 for an individual and couple. They have been increased by inflation each year since and are the basis for today’s cash benefit.
The definition of blind and elderly still generally exists today; the definition of disabled has changed over the years. The act described disabled as “Any person unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or that has lasted or can be expected to last for a continuous period of at least 12 months.”
In 1994 the definition of disabled was amended for cases where drug addiction or alcoholism (DA&A) is a contributing factor material to the finding of disability. Such cases were limited to a total of 36 benefit months and treatment requirements were implemented. This was changed in 1996, whereby an individual is not considered disabled if DA&A is a contributing factor material to a finding of disability. Payments to disabled SSI recipients who have a DA&A condition (whereby DA&A was not a material contributing factor toward disability) and are incapable of managing their benefits must be made to a representative payee. Preference must be given to community-based nonprofit social service agencies and federal, state, or local government agencies in representative payee selection. When serving as payees for individuals receiving payments based on DA&A, these agencies may retain the lesser of 10 percent of the monthly benefit or $51 (indexed to the Consumer Price Index – CPI) as compensation for their services.
While the act has been relatively stable over the years in its approach and benefit payments, there have been numerous amendments related to legal aliens, how they are paid, and the interface with Medicaid and its benefits.
SSI Expenditures Over The Years
The chart below shows SSI Program expenditures over the years adjusted for the impacts of inflation, stated in 2022 dollars [vi]. The increase or decrease in expense from year to year is related to growth or decline in recipients as the benefit level has remained constant once adjusted for inflation.
[i] For a description of the SSI Program and related data, see Social Security Administration; Annual Statistical Supplement To The Social Security Bulletin, 2022. Released December 2022. Available here.
[ii] Ibid. Calculated from the SSI formula described in the publication.
[iii] Ibid. Table 7 A3.
[iv] USGovernmentSpending.com [Internet]. Total for Supplemental Security Income Program. Retrieved March 15, 2024. Available here.
[v] Wikipedia. Supplemental Security Income [Internet]. Retrieved June 12, 2023. Available here.
[vi] Data from USGovernmentSpending.com [Internet]. See methodology of inflation adjustment on the web page, Poverty and Spending Over the Years.