Supplemental Security Income (SSI): A Fact Sheet

Supplemental Security Income (SSI): A Fact Sheet

94-486 EPW
Updated April 14, 1998
CRS Report for Congress
Received through the CRS Web
Supplemental Security Income (SSI): A Fact Sheet
Carmen Solomon-Fears
Specialist in Social Legislation
Education and Public Welfare Division
The Supplemental Security Income (SSI) program, Title XVI of the Social Security
Act, was implemented in 1974 to assure a minimum cash income to all aged, blind, or
disabled persons with limited resources (the countable resource limit is $2,000 for an
individual and $3,000 for a couple). The aged are defined as persons 65 years and older.
1
The blind are individuals with visual acuity of 20/200 or less with the use of a correcting
lens in the person’s better eye, or those with tunnel vision of 20 degrees or less. Disabled
individuals are those unable to engage in any substantial gainful activity by reason of a
medically determined 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. Pursuant
to P.L. 104-193, signed into law on August 22, 1996, a child under age 18 may qualify as
disabled if he or she has an impairment that results in “marked and severe” functional
limitations.
SSI, administered by the Social Security Administration (SSA), operates in the 50
states, the District of Columbia, and the Northern Mariana Islands. To qualify for SSI a
person must (1) be a citizen of the United States or if not a citizen, (a) be a refugee or
asylee who has been in the country for less than 7 years, or (b) be a “qualified alien” who
was receiving SSI as of August 22, 1996 or who was living in the United States on August
22, 1996 and subsequently became disabled; (2) be a resident of the United States or the
Northern Mariana Islands, or a child of a person in the military stationed outside the
United States; (3) apply for all other benefits to which he or she is entitled; and (4) if he
or she is disabled, accept vocational rehabilitation services if they are offered.
The maximum federal SSI benefit is $494 per month for an individual living
independently, and $741 for a couple living independently. SSI maximum benefits are
higher in 26 states and the District of Columbia. These jurisdictions supplement the
federal SSI benefit by varying amounts. Federal SSI benefit standards are increased
annually in January to reflect price inflation. Most SSI recipients have other income; their
countable income is subtracted from the federal SSI guarantee amount to determine SSI
eligibility and benefit amount.2

1 In determining resources, more than 20 items are excluded (e.g., individual’s home, and with
specified limitations, an automobile, household goods and personal effects, and life insurance).
2 SSI provides for unearned and earned income exclusions (e.g., the first $20 of monthly
(continued...)
Congressional Research Service ˜ The Library of Congress

CRS-2
In most states, SSI eligibility confers automatic eligibility for Medicaid. Moreover,
SSI recipients living alone or in a household where all members receive SSI benefits are
categorically eligible for Food Stamps.
The SSI program generally counts
SSI Recipients (December 1997)
all types of income (including support
Adults: 5.6 million (aged, 24.3%; disabled, 74.4%;
and maintenance furnished in cash or in
blind, 1.3%—classification at time of enrollment)
kind) in determining eligibility status
Children (under age 18): .880 million (disabled,
and benefit amount. The maximum
99.2%; blind, 0.8%)
federal SSI benefit for an aged, blind,
Sex: men, 37.9%; women, 62.1%
Race: white, 58.8%; black, 23.8%; other, 14.9%;
or disabled individual or couple who
not reported, 2.5%
live in another person’s household (and
Living arrangement: own household, 93.6%;
receive in-kind support and
another’s home, 4.1%; medical institution, 2.3%
maintenance) is two-thirds of the
With income (53.5%): social security, 37.1%; other
federal SSI guarantee amount. When
unearned income, 11.9%; earnings, 4.5%
an SSI recipient lives in a medical
Average monthly payment amount: aged, $268;
disabled, $373; blind, $382
institution for which Medicaid pays a
major part of the bill, the monthly SSI
NOTE: The aged proportion rises to 31.6%, the
disabled proportion falls to 67.4%, and the blind
benefit guarantee is reduced to $30.
proportion drops to 1%, if one counts as aged the
This personal needs allowance is
disabled and blind persons who reached age 65 after
intended for personal expenses.
joining SSI.
(Pursuant to P.L. 104-193, the $30
standard also applies to disabled
children in medical institutions who have private medical insurance.) The program also
requires that some of the income of ineligible family members be deemed available to meet
the needs of an SSI recipient (spouse-to-spouse, parent-to-child).
Generally, SSA sends the monthly SSI check directly to the recipient. However, SSA
assigns representative payees to (1) minors; (2) individuals incapable of physically or
mentally managing their own benefits; (3) individuals declared legally incompetent by a
court; and (4) SSI recipients medically determined to be drug addicts or alcoholics.
Recipients who were classified as drug addicts or alcoholics are no longer eligible for SSI
(effective January 1, 1997—P.L. 104-121). As of March 29, 1996, applicants were not
eligible for SSI if they were disabled solely on the basis of drug addiction or alcoholism.
For more information on the new rules regarding SSI and noncitizens (i.e., aliens),
see CRS Report 96-617.
Federal SSI benefits are paid from federal general revenues and state supplements by
state funds. In FY1997, estimated total SSI benefits amounted to $29.4 billion, of which
90% were federal payments ($26.4 billion) and 10% were state payments ($3.0 billion).
2 (...continued)
income from nonmeans-tested income, plus $65 of monthly earnings plus one-half of remaining
earnings).