After 50 years, the Supplemental Security Income social program is going to see some changes on its benefits!
The Supplemental Security Income (SSI) program, created with the purpose of supporting people with disabilities and older adults, made its first benefit payments 50 years ago. Established in 1974, SSI initially provided monthly checks of about $140 for individuals and $210 for couples.
By 2024, the maximum monthly SSI benefit has increased to $943 for individuals and $1,415 for eligible couples. However, the average monthly benefit for individuals is around $698, which is significantly below the federal poverty level of approximately $1,255 per month for an individual.
The social program was originally signed into law by President Richard Nixon in 1972 and supports over 7 million beneficiaries, but it needs updates to better serve its purpose as a financial safety net, according to experts.
SSI benefits come with strict rules. Income from work or other sources can reduce how much beneficiaries receive, and recipients must keep their assets below $2,000 for individuals and $3,000 for couples, or they risk losing their benefits. These rules are a problem for beneficiaries and for the Social Security Administration (SSA).
“For all the people that receive SSI, it’s really only 4% of our total benefits that we lay out as an agency, yet it accounts for 38% of our administrative overhead and workload”, Social Security Commissioner Martin O’Malley said at a National Academy of Social Insurance event to celebrate the program’s anniversary.
Improving Benefit Access
The SSA is working to reduce some of the restrictions associated with SSI. Starting September 30, the SSA will no longer count food provided by others as unearned income, making it easier for beneficiaries to qualify. Additionally, changes to the rental subsidy policy and the definition of a public assistance household are expected to broaden access to SSI. The SSA has also made it simpler for beneficiaries to request waivers for overpayments and increased the underpayment threshold from $5,000 to $15,000, helping to resolve backlogged cases.
Congress may implement further reforms to improve SSI. Increasing the SSA’s operating budget to levels from a decade ago could reduce application approval and phone assistance wait times, said O’Malley. “It would not add a single penny to the federal debt, because you already paid for it”, he added.
Experts advocate for raising SSI’s asset limits, which haven’t been updated in nearly 40 years, to improve financial security for beneficiaries. Two bills propose significant reforms: the Supplemental Security Income Restoration Act – aims to raise asset limits, set benefits at the federal poverty level, streamline the claiming process, and remove certain benefit reductions – and the SSI Savings Penalty Elimination Act – proposes increasing asset limits to $10,000 for individuals and $20,000 for couples, eliminating the marriage penalty.
Advocates Call for Broader Updates
Advocates argue that further easing SSI’s rules could significantly benefit beneficiaries. Current restrictions can prevent SSI recipients from contributing to a 401(k), earning raises, or taking paid internships without risking their benefits. Rylin Rodgers, disability policy advisor at Microsoft, highlights the need for more flexibility to support disabled workers in all job types. “SSI, while critical, is at an influx point where in some cases it’s creating a block to that talent”, she added.
Wendell Primus, former senior policy advisor on health and budget issues, suggests that loosening rules for those receiving both Social Security and SSI benefits could help lift more elderly and disabled individuals out of poverty. Tracey Gronniger, managing director for the economic security team at Justice in Aging, emphasizes the need to raise benefit levels to at least the poverty rate.
Improving SSI participation in underserved communities, especially among people of color, could also reduce poverty rates. While recent policy changes around food and housing will help, Jennifer Burdick, divisional supervising attorney at the SSI unit at Community Legal Services of Philadelphia, urges Congress to address larger issues within the program to make more significant improvements.