Supplemental Security Income (SSI)
Umar Moulta-Ali
Analyst in Disability Policy
September 14, 2012
The House Ways and Means Committee is making available this version of this Congressional Research Service
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Supplemental Security Income (SSI)
Summary
The Supplemental Security Income (SSI) program, enacted in 1974, is a needs-based program
that provides cash benefits designed to ensure a minimum income to aged, blind, or disabled
persons with limited income and assets. The SSI program is a means-tested program that does not
have work or contribution requirements, but restricts benefits to those who meet asset and
resource limitations. In July 2012, the SSI program had more than 8.2 million participants, who
received just under $4.6 billion in benefits. In FY2011, the total net cost of the SSI program was
$52.9 billion, including $49.0 billion in federal benefit payments. Funding for the SSI program is
provided by Congress in the annual Departments of Labor, Health and Human Services,
Education and Related Agencies appropriations bill.
For adults, disability is defined as the inability to engage in substantial gainful activity (SGA) by
reason of a medically determinable physical or mental impairment expected to result in death or
last at least 12 months. In general, the worker must be unable to do any kind of work that exists in
the national economy, taking into account age, education, and work experience. A child under age
18 may qualify as disabled if he or she has an impairment that results in “marked and severe”
functional limitations. For adults aged 65 or older, it is possible to qualify for SSI benefits
without being disabled. Most adult SSI recipients have other income; their countable income is
subtracted from the federal benefit rate to determine their SSI eligibility and payment amount.
The maximum federal SSI payment, referred to as the federal benefit rate, is $698 per month for
an individual living independently and $1,048 for a couple living independently in 2012. Federal
SSI benefits are adjusted annually to reflect changes in the cost of living. While benefits were not
changed in 2010 or 2011 due to the lack of a Social Security cost-of-living adjustment (COLA), a
3.6% COLA was applied in 2012. In July 2012, the average monthly federal SSI payment was
$619.70 for children under the age of 18, $532.80 for adults aged 18 to 64, and $414.80 for adults
aged 65 or older. All but six states and the Commonwealth of the Northern Mariana Islands
supplement the federal SSI benefit with additional payments, which are partially or wholly
administered by the federal government, or by the states themselves. SSI recipients are also
automatically eligible for Supplemental Nutrition Assistance Program (SNAP) and are generally
eligible for Medicaid.
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Supplemental Security Income (SSI)
Background and Eligibility
The Supplemental Security Income (SSI) program, Title XVI of the Social Security Act, was
enacted in 1972 and implemented in 1974 to assure a minimum cash income to all aged, blind, or
disabled persons.1 SSI is provided to eligible aged or disabled individuals or couples who have
limited income and resources. For adults, disability is defined as the inability to engage in
substantial gainful activity (SGA) by reason of a medically determinable physical or mental
impairment expected to result in death or last at least 12 months. In general, the worker must be
unable to do any kind of work that exists in the national economy, taking into account age,
education, and work experience. A child under the age of 18 may qualify as disabled if he or she
has an impairment that results in “marked and severe” functional limitations.2 Adults aged 65 or
older may qualify for SSI benefits without being disabled.
SSI is administered by the Social Security Administration (SSA) and operates in the 50 states, the
District of Columbia, and the Commonwealth of the Northern Mariana Islands.3 To qualify for
SSI, a person must be a citizen of the United States or a “qualified alien” and either a resident of
the United States or the Northern Mariana Islands, a child of a person in the military stationed
outside the United States, or a student temporarily abroad.4 Other requirements related to
residence in certain public institutions, absence from the United States, filing for other potential
benefits, and fugitive felon and probation/parole violator status also apply.5 In July 2012, the SSI
program had more than 8.2 million recipients, who received just under $4.6 billion in benefits.6
Of these recipients, more than 1.3 million were children under the age of 18, more than 4.8
million were adults between the ages of 18 and 64, and almost 2.1 million were adults aged 65 or
older.7
SSI Benefits
The maximum federal SSI payment, referred to as the federal benefit rate, is $698 per month for
an individual living independently and $1,048 for a couple living independently in 2012. All but
six states and the Commonwealth of the Northern Mariana Islands supplement the federal SSI
benefit with additional payments. Fourteen states and the District of Columbia have state
supplements that are either partially or wholly administered by the SSA, and 30 states self-
1 Social Security Amendments of 1972 (P.L. 92-603).
2 For additional information on the definition of disability used to determine eligibility for the SSI program, see CRS
Report RL32279, Primer on Disability Benefits: Social Security Disability Insurance (SSDI) and Supplemental Security
Income (SSI), by Umar Moulta-Ali.
3 In the remaining U.S. territories there is no SSI program. However, in all U.S. territories except American Samoa and
the Commonwealth of the Northern Mariana Islands, there is a territorial program for aged, blind and disabled people
primarily funded by the Department of Health and Human Services.
4 See CRS Report RL33809, Noncitizen Eligibility for Federal Public Assistance: Policy Overview and Trends, by
Ruth Ellen Wasem.
5 See CRS Report RL33394, Social Security Administration: Suspension of Benefits for Fugitive Felons and the
Agency’s Response to the Fowlkes Decision, by Scott Szymendera and Kathleen S. Swendiman.
6 Social Security Administration, SSI Monthly Statistics, July 2012, Table 1 available online at
http://www.socialsecurity.gov/policy/docs/statcomps/ssi_monthly/2012-07/index.html.
7 Ibid. Table 2.
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Supplemental Security Income (SSI)
administer their supplements.8 Federal SSI benefit maximums are adjusted annually using the
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to reflect changes
in the cost of living. Federal SSI benefit maximums did not increase in 2010 or 2011 as there was
no Social Security cost-of-living adjustment (COLA); however, a 3.6% COLA was applied for
2012.9
Most SSI recipients have other income; their countable income is subtracted from the federal
benefit rate to determine their SSI eligibility and payment amount. In calculating countable
income, SSI provides for certain income exclusions (e.g., the first $20 of monthly unearned
income; the first $65 plus one-half of remaining monthly earned income). In July 2012, the
average monthly federal SSI payment was $619.70 for children under the age of 18, $532.80 for
adults aged 18 to 64, and $414.80 for adults aged 65 or older.10
SSA generally sends the monthly SSI payments directly to the recipient. However, SSA assigns
representative payees to (1) minors, (2) individuals incapable of physically or mentally managing
their own benefits, and (3) individuals declared legally incompetent by a court.
SSI recipients living alone or in households in which all members receive SSI benefits are also
automatically eligible for the Supplemental Nutrition Assistance Program (SNAP).11 In most
cases, as SSI recipient is eligible for Medicaid.12
Income and Asset Limits
The SSI program generally counts all types of income in determining eligibility and payment
amounts.13 In some cases, the income and resources of non-recipients are counted in determining
SSI eligibility and benefit amounts. This process is called “deeming” and is applied in cases in
which eligible an child lives with an ineligible parent, an eligible individual lives with an
ineligible spouse, or an eligible non-citizen has a sponsor.14 In general, an SSI recipient can have
assets, with the exception of a home, car and household items, worth no more than $2,000 and
beneficiary-couples can have countable assets worth no more than $3,000.
8 Arkansas, Arizona, Mississippi, North Dakota, Tennessee, and West Virginia do not pay a supplement to people who
receive SSI. See “Understanding Supplemental Security Income,” available on the SSA website at
http://www.socialsecurity.gov/ssi/text-benefits-ussi.htm.
9 For additional information on the cost-of-living adjustments to SSI benefits see CRS Report 94-803, Social Security:
Cost-of-Living Adjustments, by Gary Sidor. For additional information on the CPI-W, see CRS Report RL30074, The
Consumer Price Index: A Brief Overview, by Brian W. Cashell.
10 Social Security Administration, SSI Monthly Statistics, July 2012, Table 7, available online at
http://www.socialsecurity.gov/policy/docs/statcomps/ssi_monthly/2012-07/index.html.
11 SNAP is the former food stamp program. In California, SSI recipients cannot receive SNAP; instead, the state adds
additional money for food purchases to the SSI payment. For additional information, see Social Security
Administration, Supplemental Security Income (SSI) in California, Washington, DC, January 2009.
12 See CRS Report RL33340, Cash and Noncash Benefits for Persons with Limited Income: Eligibility Rules, Recipient
and Expenditure Data, FY2002-FY2004, coordinated by Karen Spar.
13 See CRS Report RS20294, Supplemental Security Income (SSI): Income/Resource Limits and Accounts Exempt from
Benefit Determinations, by Umar Moulta-Ali.
14 See CRS Report RL33675, Potential Effect of Marriage on Supplemental Security Income (SSI) Eligibility and
Benefits, by Scott Szymendera.
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Funding
Federal SSI benefits and administrative costs are paid from federal general revenues and state
supplements are paid from state funds. In FY2011, the total net federal cost of the SSI program
was $52.9 billion, including $49.0 billion in federal benefit payments.15 Funding for the SSI
program is provided by Congress in the annual Departments of Labor, Health and Human
Services, Education and Related Agencies appropriations bill.
Acknowledgments
This report revises a report originally written by Scott Szymendera with research assistance provided by
Robert Valenti. All questions should be addressed to the current author.
15 Social Security Administration, Performance and Accountability Report for Fiscal Year 2011, p. 101, at
http://www.socialsecurity.gov/finance.
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