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SECTION 3 - SUPPLEMENTAL SECURITY INCOME (SSI)

CONTENTS 

Background 

Trends 

Basic Eligibility 

Categorical Requirements 

Citizenship and Residency Requirements 

Prohibition of Payment to Felons and Fugitives 

Income and Resource Requirements 

Presumptive Eligibility for Persons with AIDS and HIV 

Public Institution Requirement 

Application to Other Programs Requirement 

Eligibility for Social Security 

Eligibility for Medicaid 

Eligibility for Food Stamps 

Self-Sufficiency and SSI 

SSI Benefits 

Federal SSI Benefit Standard 

Benefits for Persons Living in the Household of Another 

Benefits for Persons Living in a Medicaid Institution 

Benefits of Former Recipients of State Assistance 

Overpayments 

Faster Initial SSI (and Social Security) Payments 

State Supplementation 

Maximum SSI and Food Stamp Benefits for Individuals Living 

Independently 

Comparison of SSI Payment Levels to Poverty Thresholds 

Trends in the SSI Caseload 

Number of Recipients 

Characteristics of Adult Disabled and Blind Recipients 

Characteristics of Recipients Receiving Benefits on the Basis of Age 

Characteristics of Children Receiving Benefits 

Overview of Caseload Developments 

Eligibility of Drug Addicts and Alcoholics 

Eligibility of Noncitizens 

Eligibility of the Homeless 

Special SSI Provisions for the Working Disabled 

Earned Income Disregards 

Eliminating Work Disincentives 

Special Benefits for Certain World War II Veterans 

Measures of SSI Participation and Growth 

SSI Participation Rates 
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Changes in Number of Recipients, 1970-2002 

SSI Program Costs 

Legislative History 

104th Congress 

105th Congress 

106th Congress 

107th Congress 

References

BACKGROUND 

The Supplemental Security Income (SSI) Program is a means-tested, 

federally administered, income assistance program authorized by title XVI of the 

Social Security Act. Established in 1972 (Public Law 92-603) with benefits first 

paid in 1974, SSI provides monthly cash payments in accordance with uniform, 

nationwide eligibility requirements to needy aged, blind, and disabled persons. 

The SSI Program replaced the Federal-State Programs of Old-Age 

Assistance and Aid to the Blind established by the original Social Security Act of 

1935 as well as the Program of Aid to the Permanently and Totally Disabled 

established by the Social Security Amendments of 1950. Under the former 

programs, Federal matching funds were offered to the States to enable them to give 

cash relief, “as far as practicable” in each State, to eligible persons whom the States 

deemed needy. The States set benefit levels and administered these programs. The 

Federal-State adult assistance programs continue to operate in Guam, Puerto Rico, 

and the Virgin Islands. Under the Covenant to Establish a Commonwealth of the 

Northern Mariana Islands, enacted as Public Law 94-241 on March 24, 1976, the 

Northern Mariana Islands became the only U.S. jurisdiction outside the 50 States 

and the District of Columbia authorized to operate an SSI Program. 

The Congress intended the new SSI Program to be more than just a Federal 

version of the former State adult assistance programs which it replaced. In 

describing the new program, the report of the Committee on Finance stated: “The 

Committee bill would make a major departure from the traditional concept of 

public assistance as it now applies to the aged, the blind, and the disabled. Building 

on the present Social Security Program, it would create a new Federal program 

administered by the Social Security Administration (SSA), designed to provide a 

positive assurance that the Nation's aged, blind, and disabled people would no 

longer have to subsist on below poverty-level incomes” (U.S. Senate, 1972, p. 384). 

The SSI Program was envisioned as a basic national income maintenance 

system for the aged, blind, and disabled which would differ from the State 

programs it replaced in a number of ways. It would be administered by SSA in a 

manner as comparable as possible to the way in which benefits were administered 

under the Social Security Program. While it was understood that modifications 

would be necessary to make SSA's systems work for the new program, SSI was 

seen as an add-on rather than a new system. SSA had a longstanding reputation for 

dealing with the public on a fair and humane basis, but with scrupulous regard for 
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the requirements of law. Thus, it was expected that both recipients and taxpayers 

would be pleased with the outcome. 

Under the former adult assistance programs the amount of assistance could 

vary from person to person according to an evaluation of the individual's needs. 

The SSI Program, by contrast, represented a “flat grant” approach in which there 

would be a uniform Federal income support level. 

In contrast to the former State programs with their provisions for liens 

against property and relative support requirements, the SSI Program was intended 

to have minimal barriers to eligibility other than a lack of income. Even here, the 

new SSI Program incorporated more generous provisions for disregarding income 

C particularly earned income C than was provided under the Old-Age Assistance 

Program. The report of the House Committee on Ways and Means stated that the 

SSI Program was designed to provide incentives and opportunities for those able to 

work or to be rehabilitated that would enable them to escape dependency 

(U.S. House, 1971, p. 147). 

For the most part, the nature of the SSI Program is expressed by its title. It 

was conceived as a guaranteed minimum income for the aged, blind, and disabled 

which would supplement the Social Security Program and act as an income-related 

program to provide for those who were not covered or minimally covered under 

Social Security or who had earned only a minimal entitlement under the program. 

It should be noted that even though SSA administers the SSI Program, SSI is 

not the same as Social Security. The SSI Program is funded by general revenues of 

the U.S. Treasury - personal income taxes, corporate taxes, and other taxes. Social 

Security benefits are funded by the Social Security taxes paid by workers, 

employers, and self-employed persons. The programs also differ in other ways 

such as the conditions of eligibility and the method of determining payments. In 

addition, States have the option of supplementing the basic Federal SSI payment. In 

some cases, State supplementary payments are administered by the State instead of 

SSA. 

TRENDS 

Table 3-1 summarizes the trends in the SSI Program: 

1. The number of recipients on SSI has risen from nearly 4 million in 1974 

to 6.8 million in December 2002. The number of SSI recipients declined 

early in the program as the number of aged individuals on SSI declined, 

but that trend reversed in the mid-eighties as rapid growth in disabled 

recipients outstripped the minimal change in the elderly and blind SSI 

populations. 

2. Total annual benefits paid under the SSI Program rose from about 

$5.2 billion in 1974 to $34.6 billion in 2002. 

3. The monthly Federal benefit rates for individuals and couples rose from 

$140 and $210 in 1974 to $552 and $829 in 2003 (2003 figures are not 

in table), respectively. Nearly all of these changes resulted from the 

statutory indexation of the Federal benefit rates to the Consumer Price 
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Index (CPI). 

4. The proportion of SSI recipients receiving Social Security benefits 

declined from nearly 53 percent in 1974 to 36 percent in 2002. The 

fraction of SSI recipients receiving some other type of unearned income 

rose slightly from about 11 percent in 1974 to 12 percent in 2002, and 

the fraction with earnings increased slightly from less than 3 percent in 

1974 to more than 4 percent in December 2002. 

5. The Federal benefit rate as a percent of the appropriate poverty level for 

individuals has ranged from 72 to 77 percent and was 76 percent in 

2002; for couples it has ranged from 86 to 91 percent and was 

90 percent in 2002. Most States supplement the Federal benefit for at 

least some participants. 

6. The SSI Program pays benefits to children who are blind or have other 

disabilities. Some of the increases in participation since 1991 reflect the 

revised definition of disability for children as a result of the Supreme 

Court's decision in the Sullivan v. Zebley case. Public Law 104-193 

(enacted August 22, 1996) established a more restrictive disability 

definition for children which is expected to result in a slower rate of 

growth in the number of children receiving SSI benefits. 

BASIC ELIGIBILITY 

CATEGORICAL REQUIREMENTS 

To qualify for SSI payments, a person must satisfy the program criteria for 

age, blindness, or disability. The aged are defined as persons 65 years and older. 

The blind are individuals with 20/200 vision 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. The test of “substantial gainful activity” in calendar year 2003 is to 

earn $800 monthly in counted income, with impairment-related expenses subtracted 

from earnings. Generally, the individual must be unable to do any kind of work that 

exists in the national economy, taking into account age, education, and work 

experience. 

Children may qualify for SSI if they are under age 18 (or under age 22 if a 

full-time student), unmarried, and meet the applicable SSI disability or blindness, 

income, and resource requirements. Public Law 104-193, the Personal 

Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996, 

established a new disability definition for children under age 18 which requires a 

child to have “a medically determinable physical or mental impairment which 

results in marked and severe functional limitations, and which can be expected to 

result in death or which has lasted or can be expected to last for a continuous period 

of not less than 12 months.” 
TABLE 3-1--SUPPLEMENTAL SECURITY INCOME SUMMARY, SELECTED YEARS 1974-2002 

Item 1974 1978 1980 1984 1988 1992 1994 1996 1998 2000 20

Recipients: 1 Aged 2,285,909 1,967,900 1,807,776 1,530,289 1,433,420 1,471,022 1,465,905 1,412,632 1,331,782 1,289,339 1,251 Blind 74,616 77,135 78,401 80,524 82,864 85,400 84,911 82,137 80,243 78,511 77,

 Disabled 1,635,539 2,171,890 2,255,840 2,418,522 2,947,585 4,009,767 4,744,470 5,118,949 5,154,044 5,233,836 5,458Total 3,996,064 4,216,925 4,142,017 4,029,333 4,463,869 5,566,189 6,295,786 6,613,718 6,566,069 6,601,686 6,787

Number with Section 1619(a) NA NA NA 406 (8/84) 19,920 17,603 24,315 31,085 37,271 83,572 79,Number with Section 1619(b) NA NA NA 6,804 15,625 31,649 40,683 51,905 59,542 27,542 16,

Annual Payments (In Millions of Current Dollars): 

Federal Benefits $3,833 $4,881 $5,866 $8,281 $10,734 $18,247 $22,175 $25,265 $26,405 $27,290 $29

Federally Administered State Supplementation 

1,264 1,491 1,848 1,792 2,671 3,435 3,116 2,988 3,003 3,381 3,8

State Administered State Supplementation 149 180 226 299 381 5562 579 539 808 892 91

Total $5,246 $6,552 $7,940 $10,372 $13,786 $22,238 $25,870 $28,252 $30,216 $31,564 $34

Annual Payments (In Millions of 2002 Dollars) 

$19,937 $18,566 $18,074 $18,026 $21,102 $28,518 $31,338 $32,406 $33,114 $33,116 $34

Maximum Monthly Federal Benefits:  Individuals $140.00 $177.80 $208.20 $314.00 $354.00 $422.00 $446.00 $470.00 $494.00 $513.00 $54 Couples 210.00 266.70 357.00 472.00 532.00 633.00 687.00 705.00 741.00 769.00 817

Average Federal SSI Payments: 1

 All Recipients $95.11 $111.98 $143.35 $196.16 $227.49 $329.74 $325.26 $339.24 $359.45 $378.82 $40 Aged Individuals 78.48 91.22 112.45 143.24 159.36 195.86 211.55 227.42 271.66 292.67 322

 Aged Couples 93.02 120.48 157.56 221.98 273.18 448.61 505.64 563.39 611.00 665.60 730
TABLE 3-1--SUPPLEMENTAL SECURITY INCOME SUMMARY, SELECTED YEARS 1974-2002-continue

Item 1974 1978 1980 1984 1988 1992 1994 1996 1998 2000 

Percent of Recipients with Other Income: 1 Social Security Benefits 52.7 51.7 51.0 49.6 47.8 41.3 39.1 37.0 36.5 36.1  Other Unearned Income 10.5 11.5 11.0 11.2 12.4 14.5 13.1 12.4 11.7 11.7  Earnings 2.8 3.1 3.2 3.5 4.4 4.4 4.2 4.4 4.5 4.4 Average Amount of: 1

 Social Security Benefits $130.01 $156.50 $196.94 $250.61 $286.49 $335.72 $345.20 $382.56 $374.60 $378.82 $

 Other Unearned Income 61.10 66.93 74.35 84.56 85.92 91.96 101.13 112.46 129.90 292.67  Earnings 80.00 99.32 106.95 126.47 173.09 207.55 225.01 258.42 282.52 665.60 Poverty Thresholds (Age 65 and Over):  Individual $2,364 $3,127 $3,949 $4,979 $5,674 $6,729 $7,108 $7,525 $7,818 $8,259  Couple 2,982 3,944 4,983 6,282 7,158 8,489 8,967 9,491 9,862 10,414 Federal Benefit as a Percent of Poverty:  Individual 74.1 72.7 72.3 75.6 74.9 75.3 75.3 75.0 75.8 74.5  Couple 88.1 86.4 86 90.2 89.2 89.5 89.5 89.1 90.2 88.6 

1 December data. Includes Federal SSI and federally administered State supplements. 2 Fiscal year 1992 data. 

 NA: Not available. Source: Social Security Administration (various years) and unpublished data. 
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Under pre-1996 law, low-income children could qualify for SSI benefits in 

two ways: their disability could match one of the impairments in the medical 

“listing of impairments” or they could be evaluated under an individualized 

functional assessment disability determination procedure (generally considered a 

less stringent process) that determined whether an unlisted impairment seriously 

limited a child's ability to perform activities normal for his age. Both methods were 

stipulated in Federal regulations. Until the Supreme Court's 1990 ruling in 

Sullivan v. Zebley, the medical listings were the only way to determine a child's 

eligibility for SSI benefits. Adults, in contrast, could receive an assessment of their 

functional and vocational capacities even if they did not meet one of the listings. 

The Court ruled that sole reliance on the listings did not satisfy the law's 

requirement to gauge whether children's disorders were of comparable severity to 

impairments that would disable adults. 

The 1996 welfare reform law discontinued the individualized functional 

assessment and the “comparable severity” standard upon which it was based. Many 

children on the rolls as a result of an individualized functional assessment had their 

benefits terminated, and future awards based on individualized functional 

assessments were barred. Thus, the SSI Program for Children is restricted to those 

who have impairments that meet or equal at least one of the listings. Pursuant to the 

1996 law, the listing of impairments has been changed to reflect the new disability 

definition for children. 

CITIZENSHIP AND RESIDENCY REQUIREMENTS 

To qualify for SSI a person must be a citizen of the United States or, if not a 

citizen, be a refugee or asylee who has been in the country for less than 7 years, or 

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. 

Subsequent to 1996, changes were made to the alien eligibility requirements that 

extended to certain groups of aliens, added new categories to the list of qualified 

aliens, exempted certain Native Americans from the eligibility limitations and 

granted SSI eligibility to aliens who are determined to be victims of “severe forms 

of trafficking in persons.” (For more detailed information on eligibility 

requirements for noncitizens, see Appendix J.) 

In addition to the citizenship requirement, a person must 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, or a student temporarily abroad; must apply for 

all other benefits to which she is entitled; and must, if she is disabled, accept 

vocational rehabilitation services if they are offered. 

PROHIBITION OF PAYMENT TO FELONS AND FUGITIVES 

The 1996 welfare reform law provides that, as of August 22, 1996, SSI 

benefits may not be paid to individuals who are fleeing to avoid prosecution for a 

felony crime, or fleeing to avoid custody or confinement after conviction for a 
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felony crime, or violating a condition of probation or parole imposed under Federal 

or State law. 

INCOME AND RESOURCE REQUIREMENTS 

Income 

Individuals and couples are eligible for SSI if their incomes fall below the 

Federal maximum monthly SSI benefit, currently $552 for an individual and 

$829 for a couple (calendar year 2003 standards). If only one member of a couple 

qualifies for SSI, part of the ineligible spouse's income is considered to be that of 

the eligible spouse (this procedure is called “deeming”). If a couple separates, each 

person is treated as an individual in the month following the month of separation. If 

an unmarried child living at home is under age 18, some of the parent's income is 

deemed to that child. If an immigrant is sponsored into the United States, some of 

the sponsor's and the sponsor's spouse's income may be deemed to that immigrant. 

Income includes cash, checks, and items received “in kind” such as food and 

shelter. Wages, net earnings from self-employment, and income from sheltered 

workshops are considered earned income. Social Security benefits, workers or 

veterans compensation, annuities, rent, and interest are counted as unearned 

income. 

An individual does not have to be totally without income to be eligible for 

SSI benefits. Maximum SSI benefits are paid, assuming the other conditions of 

eligibility are met, if the individual or couple has no "countable" income in that 

particular month. If the individual or couple has “countable” income, a reduction is 

made against the maximum payment. Not all income is counted for SSI purposes. 

Since 1972, the major exclusions have included the first $20 of monthly income 

from virtually any source (such as Social Security benefits), and the first $65 of 

monthly earned income plus one-half of remaining earnings. 

Income received in sheltered workshops and work activity centers is 

considered earned income and qualifies for the earned income exclusion. Table 3-2 

shows the maximum income that an individual and couple can have, taking into 

account these income exclusions, and still remain eligible for Federal SSI benefits. 

TABLE 3-2--MAXIMUM INCOME FOR ELIGIBILITY FOR 

FEDERAL SSI BENEFITS, 2003 

Receiving Only Social Security Receiving Only Wage Income 

 Monthly Annually Monthly Annually 

Individual $572 $6,864 $1,189 $14,268 

Couple 849 10,188 1,743 22,916 

Source: Office of Research, Evaluation and Statistics, Social Security Administration. 

Work-related expenses are disregarded (i.e., subtracted from income) in the 

case of blind applicants or recipients and impairment-related work expenses are 

disregarded in the case of disabled applicants or recipients. 

The SSI Program also does not count income and resources that are set aside 

as part of an approved plan for achieving self-support (PASS). A PASS is an 
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income and resource exclusion that allows an SSI recipient who is blind or disabled 

to set aside income and resources for a work goal. The money set aside can be used 

to pay for such items or services as education, vocational training, or starting a 

business. 

The value of any in-kind assistance is counted as income unless such in-kind 

assistance is specifically excluded by statute. Generally, in-kind assistance provided 

by or under the auspices of a federally assisted program, or by a State or local 

government (for example, nutrition, food stamps, housing, or social services), will 

not be counted as income. As described later, if an SSI applicant or recipient is 

living in the household of another and receiving in-kind support and maintenance 

from him, the SSI benefit standard for such an individual is reduced by one-third. 

By regulation, SSA also has ruled that the value of any in-kind support and 

maintenance received (other than in-kind assistance received by reason of living in 

another's household) is presumed to equal one-third of the Federal SSI benefit 

standard plus $20. The individual can rebut this presumption. If it is determined 

that the actual value is less than the one-third amount, the lower actual value will be 

counted as unearned income. 

In-kind support and maintenance provided by a private nonprofit 

organization to aged, blind, or disabled individuals is excluded under the SSI 

Program if the State determines that the assistance is provided on the basis of need. 

Certain types of assistance provided to help meet home energy needs also are 

excluded from income. For example, certain assistance provided to an aged, blind, 

or disabled individual for the purpose of meeting home energy costs by a home 

heating oil or gas supplier, a utility company, or a private nonprofit organization 

also is excluded. 

As countable income increases, a recipient's SSI benefit amount decreases. 

Generally, ineligibility for SSI occurs when countable income equals the Federal 

benefit standard plus the amount of State supplementation, if any. 

Resources

Since 1974 SSI eligibility has been restricted to qualified persons who have 

resources of not more than $2,000, or $3,000 in the case of a couple. The resource 

limit for a couple applies even if only one member of a couple is eligible. If the 

couple separates, the person is treated as an individual in the following month. If an 

unmarried child living at home is under age 18, the parent's assets are considered to 

be the child's (i.e., deemed to the child). 

In determining countable resources, a number of items are not included, such 

as the individual's home, and, within reasonable limits set by SSA, household 

goods, personal effects, an automobile, and a burial space for the individual, 

spouse, and members of the immediate family. Regulations place a limit of 

$2,000 in equity value on excluded household goods and personal effects and 

exclude the first $4,500 in current market value of an auto (100 percent of the auto's 

value is excluded if it is used to obtain medical treatment or for employment or has 

been modified for use by or transportation of a handicapped person or is necessary 

to perform essential daily activities because of distance, climate, or terrain). The 
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value of property which is used in a person's trade, or business, or by the person as 

an employee also is excluded. The value of certain other property that produces 

income, goods, or services essential to a person's self-support may be excluded 

within limits set by SSA in regulations. SSI and Social Security retroactive benefit 

payments may not be considered as a resource for a period of 6 months after the 

month in which the retroactive benefit is received. Resources set aside under a 

PASS also are excluded. 

The cash surrender value of life insurance policies if the total face value of 

all policies is $1,500 or less is not counted toward the $2,000 or $3,000 countable 

resources limit. The entire cash surrender value of life insurance policies, if the 

total face value of all policies on an individual's life is greater than $1,500, counts 

toward the resources limit, but may be excludable under one of the other resource 

provisions. 

An individual and spouse may have excluded up to $1,500 each of burial 

funds. However, the $1,500 maximum amount is reduced by the face value of any 

excluded life insurance policies and the value of any irrevocable burial contracts, 

trusts, or arrangements. If left to accumulate, interest earned on excluded burial 

funds and burial spaces is not countable as either income or resources for SSI 

purposes. 

Individuals who give away or sell any nonexcludable resource for less than 

fair market value may be subject to penalty. Also, such a transfer may make the 

individual ineligible for certain Medicaid covered nursing services. SSA must 

notify individuals of the penalty and provide information upon request to the States 

regarding transfers of resources. 

The Deficit Reduction Act of 1984 (Public Law 98-369) requires the Internal 

Revenue Service (IRS) to furnish SSA with certain nonwage information about SSI 

recipients. The IRS information consists primarily of reports of interest payments 

submitted to IRS by financial institutions but also includes income from dividends, 

unemployment compensation, and other sources. In fiscal year 1987, computer 

matches between IRS tax files and SSI records resulted in 239,000 matches. Only 

cases involving IRS reports of interest income of $51 or more were examined. The 

resulting savings to the SSI Program were $64 million. As a result of SSA's 

evaluation of these cases, the tolerance level was lowered to $41 beginning with 

fiscal year 1988 and 398,000 matches were identified. In fiscal year 1989, there 

were 508,000 matches. SSA has evaluated and adjusted the tolerance levels several 

times over the years. Effective October 1993, the tolerance level for income from 

resourcesCe.g., interest and dividendsCis $60. The tolerance level for other 

nonwage income not from resourcesCe.g., unemployment compensation and 

pensionsCis $1,000. Also, a special tolerance was developed for cases that had 

been matched before; if the current year's resources are less than $10 more than the 

prior year's resource indicators, the IRS report is not examined. All match 

information is sent to Social Security offices for verification of the information. For 

fiscal year 2002 there were 92,000 matches. 

Based on a study of the 1993 matches, SSA decided to apply a statistical 

profiling technique to the IRS matches. Statistical profiling increases the cost 
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effectiveness of the IRS process by targeting the more error-prone matches and 

eliminating the less productive matches. The resulting savings to the SSI Program 

were $45 million. 

Prior to the 1984 Deficit Reduction Act, if in any month a recipient's assets 

exceeded the asset limit, the individual was ineligible for benefits in that month and 

the entire amount of the benefit paid for that month was considered an overpayment 

subject to recovery. Effective October 1, 1984, SSI law provides that in cases where 

there is an overpayment based solely on an excess of assets of $50 or less, the 

recipient is deemed to be without fault for purposes of waiving the overpayment 

and the overpayment is not recovered unless the Secretary finds that the failure to 

accurately and timely report the excess was knowing and willful on the part of the 

recipient. 

An individual may receive SSI benefits for a limited time even though he has 

certain nonliquid property that, if counted, would make him ineligible. These 

benefits are conditioned upon the disposal of the property, and are subject to 

recovery as overpayments when the property is sold. The 1987 Budget 

Reconciliation Act provides, in addition, for the exclusion of real property if it 

cannot be sold because it is jointly owned and sale would cause undue hardship to 

the joint owner due to loss of housing, because there are legal impediments to its 

sale, or because reasonable efforts to sell it have been unsuccessful. 

Deeming of Income and Resources

The income of an ineligible spouse who lives with an adult SSI applicant or 

recipient is considered in determining the eligibility and amount of payment to the 

individual. The income of the parents of a child under the age of 18 who is blind or 

disabled also is considered in determining the eligibility and payment for the child. 

However, since 1990, children with disabilities who are eligible for Medicaid at 

home under State home care plans, who previously received SSI personal needs 

allowances (PNAs) while in medical institutions, and who otherwise would be 

ineligible for SSI because of their parents' income or resources, have been eligible 

for the $30 monthly PNA that would be payable if they were institutionalized, 

without regard to their parents' income and resources. Effective October 1, 1993, an 

ineligible parent or spouse who is absent from a household due solely to a duty 

assignment as a member of the Armed Forces is considered, absent evidence to the 

contrary, to be living in the same household as the SSI applicant or recipient for 

deeming purposes. 

By regulation, the Commissioner of Social Security has provided that in 

determining the amount of the income of an ineligible spouse or parent to be 

deemed to the SSI applicant or recipient, the needs of the spouse or parent and other 

children in the household are taken into account. In addition, the SSI earned and 

unearned income exclusions are applied in determining the amount of income to be 

deemed to the SSI applicant or recipient. If the combined countable income of an 

SSI applicant and an ineligible spouse does not exceed the SSI benefit standard for 

an eligible couple in that State (including any federally administered State 

supplementary payment), the SSI applicant would be eligible to receive an SSI 
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and/or State supplementary benefit. 

For example, in 2003 in a State with no supplementation, here is how the 

deeming procedure would work in the case of an ineligible spouse earning $600 per 

month living with an eligible individual with $200 of Social Security benefits: 

Unearned income of eligible individual............................................. $200.00 

Less $20 exclusion ............................................................................. -20.00 

 Countable unearned income ................................................... 180.00 

Earned income of ineligible individual.............................................. 600.00 

Less $65 earned income disregard ..................................................... -65.00 

Less one-half of remaining earnings ($535) ...................................... -267.50 

 Countable earned income ..................................................... 267.50 

Plus countable unearned income ........................................................ 180.00 

 Couple’s total countable income........................................... 447.50 

SSI payment standard for couples ..................................................... 829.00 

Less countable income ....................................................................... -447.50 

 Benefit payable to eligible individual .................................. 381.50 

Thus, the benefit for the eligible individual will be $381.50 (SSI law requires 

that benefits be rounded down to the next lower dollar). Without deeming and as an 

individual, the recipient would have received $372 [$552 - ($200 less $20 

exclusion)]. The $20 exclusion can be used only once and is applied first to 

unearned income, which in this example is the $200 of Social Security income. 

An individual's resources are deemed to include those of the ineligible 

spouse (or in the case of a child under the age of 18, those of the parents) with 

whom the individual is living. Under SSI regulations, in determining the amount of 

the spouse's or parents' resources that can be deemed, all applicable exclusions are 

applied. In the case of a child, only the value of the parents' resources that exceeds 

the applicable limits ($2,000 for a single parent, and $3,000 for two parents) is 

deemed to the child. Also, under regulations, pension funds of an ineligible spouse 

or parent are excluded from deeming. 

In December 2002, there were about 167,970 children's cases in which 

deeming reduced benefits. This figure does not take into account, however, the 

number of children who were not eligible because of the deeming provision. (For a 

discussion of deeming rules for noncitizens, see Appendix J.) 

PRESUMPTIVE ELIGIBILITY FOR PERSONS WITH AIDS AND HIV 

 Section 1631(a)(4)(B) of the Social Security Act provides that the 

Commissioner of Social Security may pay up to 6 months of SSI benefits to a 

person applying for benefits based on disability or blindness prior to the 

determination of the individual's impairment if the individual is presumptively 

disabled or blind, and otherwise eligible. A finding of presumptive disability or 

blindness may be made at the Social Security field offices only for specified 

impairment categories because the field office employees generally are not trained 

disability adjudicators; however, at the State agencies where there are disability 

adjudicators a finding of presumptive eligibility may be made for any impairment 

category. 
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On February 11, 1985, acquired immune deficiency syndrome (AIDS), as 

defined by the Centers for Disease Control, was added (pursuant to interim Federal 

regulations) to the impairment categories, thus allowing field offices to find 

presumptive disability for persons claiming they had AIDS. These regulations were 

scheduled to expire February 11, 1988, but were extended until 

December 31, 1989; and in 1989 they were extended until December 31, 1991. In 

December 1991, a new more liberal regulation was implemented. Under the new 

procedures, the Social Security field offices may make a finding of presumptive 

disability for any individual with the human immunodeficiency virus (HIV) whose 

disease manifestations are of listing-level severity, rather than only for those who 

have been diagnosed with AIDS. 

SSA standards governing presumptive SSI eligibility for persons with HIV 

disease have been challenged in court in at least one State on the grounds that they 

discriminate against women. The contention is that the listing of impairments 

reflects the course of HIV disease in men, while women tend to have different 

symptoms and therefore are excluded. Others have argued that the Centers for 

Disease Control definition and the somewhat broader SSA listing have failed to 

keep pace with changing manifestations of HIV disease. 

PUBLIC INSTITUTION REQUIREMENTS 

 Public institutions are prisons, hospitals, nursing homes, or any institution 

that is operated or administered by a governmental unit. The governmental unit 

could be the Federal, State, city, or county government, or another political 

subdivision of the State. Residents of public institutions for a full calendar month 

are ineligible for SSI unless one of the following exceptions applies: 

1. The public institution is a medical treatment facility and Medicaid pays 

more than 50 percent of the cost of care. 

2. The individual is residing in a publicly operated community residence 

which serves no more than 16 residents. Such a facility must provide an 

alternative living arrangement to a large institution and be residential 

(i.e., not a correctional, educational, or medical facility). 

3. The public institution is a public emergency shelter for the homeless. Such 

a facility provides food, a place to sleep, and some services to homeless 

individuals on a temporary basis. Payments to a resident of a public 

emergency shelter for the homeless are limited to no more than 6 months 

in any 9-month period. 

4. The individual is in a public institution primarily to receive educational or 

vocational training. To qualify, the training must be an approved program 

and must be designed to prepare an individual for gainful employment. 

5. The individual was eligible for SSI under one of the special provisions of 

section 1619 of the Social Security Act (see section on “Special SSI 

Provisions for the Working Disabled”) in the month preceding the first 

full month of residency in a medical or psychiatric institution which 

agrees to permit the individual to retain benefit payments. Payment may 
3-14 

be made for the first full month of institutionalization and the subsequent 

month. 

6. A physician certifies that the recipient's stay in a medical facility is likely 

not to exceed 3 months and the recipient needs to continue to maintain and 

provide for the expenses of the home to which she may return. Payments 

may be made for up to the first 3 full months of institutionalization. 

 

 To help institutionalized individuals return to community living, the SSI 

Program includes a prerelease procedure for institutionalized individuals. Some 

individuals are medically ready to be released from an institution but are financially 

unable to support themselves. The prerelease procedure allows such individuals to 

apply for SSI payments and food stamps several months in advance of their 

anticipated release so benefits can commence quickly after release. A formal 

prerelease agreement can be developed between an institution and the local Social 

Security office. However, an individual can file an application for SSI under 

prerelease without the existence of such an agreement. 

Under Federal law, residents of public institutions for a full calendar month 

generally are ineligible for SSI benefits. Prisons are considered public institutions. 

The bar against SSI benefits to prisoners has been enforced through an exchange of 

computerized data between SSA and the Federal Bureau of Prisons, State prisons, 

and some county prisons. According to the SSA's Office of the Inspector General, 

these computerized arrangements generally covered about three-quarters of 

inmatesCall Federal and State prisoners but only about 15 percent of county 

prisoners. The agreements were voluntary and until recently involved no payments 

to the institutions. However, the 1996 welfare reform law (Public Law 104-193), 

required the Commissioner of Social Security to enter into a contract with any 

interested State or local institution (such as a prison, jail, or mental hospital) under 

which the institution regularly would provide to the Commissioner the names, 

Social Security numbers, dates of birth, and such other identifying information 

concerning the inmates or residents of the institution to help the Commissioner 

enforce the "prohibition of payments to residents of public institutions" rule. To 

encourage such reporting so benefits can be ended as Federal law intends, the 

Commissioner must pay the institution up to $400 for each resident found to be 

wrongly receiving SSI payments if the information is provided to the 

Commissioner within 30 days after such individual becomes a resident, or up to 

$200 for each SSI - receiving inmate if the information is provided after 30 days 

but within 90 days of the person=s becoming a resident. 

Between March 1, 1997 and March 6, 2003, SSA paid $87.4 million for 

240,105 incentive payments. 

In 1999, Congress acted to further tighten restrictions on the payment of 

Federal benefits to prisoners. Public Law 106-170, signed into law on 

December 14, 1999, expands the SSI Program's benefit suspension rules and 

incentive payments regarding State and local prisoners to include individuals 

receiving Old-Age, Survivors, and Disability Insurance (OASDI) benefits. 

(Payments to prisons will be reduced by 50 percent for multiple reports on 
3-15 

individuals who receive both SSI and OASDI benefits.) 

Public Law 106-170 also requires State prisons to provide inmate 

information to Federal and federally assisted benefit programs, including SSA. To 

help reduce fraudulent benefit payments of food stamps, veterans benefits, 

unemployment benefits, and educational aid, Public Law 106-170 directs SSA to 

share its prisoner database with other Federal agencies and departments. 

APPLICATION TO OTHER PROGRAMS REQUIREMENT

Since SSI payments are reduced by other income, applicants and recipients 

must apply for any other cash benefits due them. SSA works with recipients and 

helps them get any other benefits for which they are eligible. 

ELIGIBILITY FOR SOCIAL SECURITY 

Since its inception SSI has been viewed as the “program of last resort.” That 

is, after evaluating all other income, SSI pays what is necessary to bring an 

individual to the statutorily prescribed income "floor." As of December 2002, 

35.5 percent of all SSI recipients also received Social Security benefits 

(57.8 percent of the aged, 34.3 percent of the disabled, and 30.3 percent of the 

blind). Social Security benefits are the single highest source of income for SSI 

recipients. The SSI Program considers Social Security benefits unearned income 

and thus counts all but $20 monthly in determining the SSI benefit amount. 

ELIGIBILITY FOR MEDICAID 

States have three options as to how they treat SSI recipients in relation to 

Medicaid eligibility. Section 1634 of SSI law allows SSA to enter into agreements 

with States to cover all SSI recipients with Medicaid eligibility. SSI recipients are 

not required to make a separate application for Medicaid under this arrangement. 

As of January 1, 2003, 32 States and the District of Columbia chose this option, and 

SSI recipients in these States account for approximately 79 percent of all SSI 

recipients nationwide. 

Under the second option, States elect to provide Medicaid eligibility for all 

SSI recipients, but only if the recipient completes a separate application with the 

State agency which administers the Medicaid Program. Alaska, Idaho, Kansas, 

Nebraska, Nevada, Oregon, and Utah and the Commonwealth of the Northern 

Mariana Islands, affecting about 5 percent of SSI recipients nationwide, have 

elected this option. 

The third and most restrictive option is known as the “209(b)” option, under 

which States may impose Medicaid eligibility criteria which are more restrictive 

than SSI criteria, so long as the criteria chosen are not more restrictive than the 

State's approved Medicaid State plan in January 1972. The 209(b) States may be 

more restrictive in defining blindness or disability, and/or more restrictive in their 

financial requirements for eligibility, and require a Medicaid application with the 
3-16 

State. However, aged, blind, and disabled SSI recipients who are Medicaid 

applicants must be allowed to spend down in 209(b) States, if the State uses more 

restrictive income criteria, regardless of whether the State has a medically needy 

program. Currently 11 States use the 209(b) option for Medicaid coverage of aged, 

blind, and disabled SSI recipients. About 16 percent of the SSI recipient population 

nationwide lives in these 209(b) States. The 11 States that use this option are 

Connecticut, Hawaii, Illinois, Indiana, Minnesota, Missouri, New Hampshire, 

North Dakota, Ohio, Oklahoma, and Virginia. 

An amendment included in the 1986 SSI Disability Amendments 

(Public Law 99-643) required, effective July 1, 1987, that 209(b) States continue 

Medicaid coverage for individuals in section 1619 status if they had been eligible 

for Medicaid for the month preceding their becoming eligible under section 1619 

(see section below on “Special SSI Provisions for the Working Disabled”). 

The same legislation required States to provide continued Medicaid coverage 

for those individuals who lose eligibility for SSI on or after July 1, 1987 when their 

income increases because they become newly eligible for Social Security benefits 

as an adult who was disabled as a child (disabled adult child) or because of an 

increase in their benefits as an adult who was disabled as a child. “Disabled adult 

children” who otherwise would be eligible for SSI continue to be considered SSI 

recipients for Medicaid purposes. Protection against loss of Medicaid also is 

provided for certain blind or disabled individuals who lose their SSI benefits when 

they qualify for Social Security disabled widow or widower's benefits beginning as 

early as age 50. The Omnibus Budget Reconciliation Act of 1990 provides that 

such individuals, who otherwise would continue to qualify for SSI on the basis of 

blindness or disability, will be deemed to be SSI recipients for purposes of 

Medicaid eligibility until they become eligible for Medicare. 

ELIGIBILITY FOR FOOD STAMPS 

Except in California, which has converted food stamp benefits to cash that is 

included in the State supplementary payments, SSI recipients may be eligible to 

receive food stamps. SSI beneficiaries living alone or in a household where all 

other members of the household receive or are applying for SSI benefits can file for 

food stamps at an SSA office. If all household members receive SSI, they do not 

need to meet the Food Stamp Program financial eligibility standards to participate 

in the program because they are categorically eligible. However, SSI beneficiaries 

living in households where other household members do not receive or are not 

applying for SSI benefits are referred to the local food stamp office to file for food 

stamps. These households must meet the net income eligibility standard of the Food 

Stamp Program to be eligible for food stamp benefits. 

The interaction with the Food Stamp Program has important financial 

implications for a State which desires to increase the income of its SSI recipients by 

$1. Because food stamps are reduced by $0.30 for each additional $1 of SSI income 

including State supplements, the State must expend $1.43 to obtain an effective 

$1 increase in SSI recipients’ total income. 
3-17 

SELF-SUFFICIENCY AND SSI

Section 1615(d) of the Social Security Act requires SSA to reimburse State 

vocational rehabilitation agencies for reasonable and necessary costs of services 

which resulted in disabled SSI recipients’ being successfully rehabilitated. The 

objective of vocational rehabilitation for SSI recipients is to help disabled 

individuals achieve and sustain productive, self-supporting work activity. SSA 

provides funds to reimburse vocational rehabilitation agencies for costs incurred in 

successfully rehabilitating SSI recipients. A successful rehabilitation is defined by 

law as one in which vocational rehabilitation services result in performance of 

substantial gainful activity for a continuous period of 9 months. 

In 1999, Congress expanded the Vocational Rehabilitation Program. Public 

Law 106-170, signed into law on December 17, 1999, creates a Ticket to Work and 

Self-Sufficiency Program. The purpose of the program is to help recipients leave 

the SSI rolls through greater accessibility to a broader pool of vocational 

rehabilitation providers than was previously available to them. 

Under the new law, the Commissioner of Social Security will provide tickets 

to work to disabled SSI beneficiaries that they can use as vouchers to obtain 

employment services, case management, vocational rehabilitation, and support 

services from providers of their choice, including State vocational rehabilitation 

agencies. The program is implemented on a graduated basis, beginning within 

1 year of enactment at sites selected by the Commissioner and within 4 years of 

enactment in every State. The program is permanently authorized. 

The elements of the ticket system include program managers, employment 

networks, individual work plans, program evaluations, and a Ticket to Work and 

Work Incentives Advisory Panel composed of 12 members. The Commissioner is 

required to contract with program managers (one or more public or private 

organizations with expertise and experience in the field of vocational rehabilitation 

or employment services) through a competitive bidding process to help SSA 

administer the program. Program managers are to recruit and recommend 

employment networks to the Commissioner, ensure that adequate choices of 

services are available to beneficiaries, ensure beneficiary access to services, and 

provide assurances to SSA that employment networks are complying with 

agreement terms. 

The ticket to work law requires employment networks to consist of a single 

public or private provider or an association of providers combined into a single 

entity which assumes responsibility for the coordination and delivery of services. 

Employment networks are required to have experience providing relevant 

employment services and support for individuals with disabilities and will have to 

provide an array of such services under the program. Employment networks and 

beneficiaries must develop an individual employment plan so that the beneficiary 

can exercise informed choice in selecting an employment goal and specific services 

needed to achieve that goal. Employment networks prepare and provide periodic 

performance reports to beneficiaries holding a ticket and provide periodic quality 
3-18 

assurance reviews of employment networks. The Commissioner is required to 

establish a method for resolving disputes between beneficiaries and employment 

networks. The ticket to work law also requires that State vocational rehabilitation 

agencies and employment networks enter into agreements regarding the conditions 

under which services will be provided when an individual is referred by an 

employment network to State vocational rehabilitation agencies. The Commissioner 

must establish a timeframe for these agreements and a dispute resolution method. 

Payment to employment networks is based on outcomes and long-term 

results by providing one of two payment systems: an outcome payment system or 

an outcome-milestone payment system. Under the outcome payment system, 

employment networks are provided with up to 40 percent of the average monthly 

disability benefit for each month benefits are not payable to the beneficiary due to 

work (but not for more than 60 months). Under the outcome-milestone payment 

system, the employment networks receive early payments based on the 

achievement of one or more milestones toward permanent employment. The total 

amount payable under the outcome-milestone payment system must be less than the 

total amount that otherwise would have been payable for an individual under the 

outcome payment system. Regardless of which payment system is used, 

SSI beneficiaries forgo SSI payments to participate in the ticket to work system, 

and instead receive earnings from work. Providers use the ticket, or voucher, to 

claim payment from SSA for services they provide to beneficiaries. Providers are 

paid for each month in which an SSI beneficiary is not receiving benefits because 

the individual is working or has earnings. The Commissioner is required to design 

and conduct a series of evaluations of the payment system to assess the cost 

effectiveness and effects of the program, in consultation with the Advisory Panel, 

and report the findings to Congress. 

SSI BENEFITS

FEDERAL SSI BENEFIT STANDARD

The Federal SSI benefit standard for 2003 is $552 a month for an individual 

and $829 for a couple. As is discussed later, most States supplement the Federal 

SSI benefit. The result is a combined Federal SSI/State supplemental benefit 

standard against which countable income is compared in determining eligibility and 

benefit amount. However, many States limit their supplementation to certain 

categories of individuals based on specific indicators of needCespecially special 

housing needs. 

 Like Social Security benefits, Federal SSI benefits are indexed to the 

Consumer Price Index (CPI). Indexing occurs through a reference in the SSI law to 

the Social Security cost-of-living adjustment (COLA) provision. Prior to the Social 

Security Amendments of 1983 (Public Law 98-21), the SSI and Social Security 

cost-of-living increases occurred in benefits paid in July. Public law 98-21 delayed 

the Social Security and SSI COLAs from July 1983 to January 1984. However, in 

lieu of a COLA increase in the SSI benefit standard, the Federal SSI benefit was 
3-19 

increased in July 1983 by $20 a month for an individual and $30 a month for a 

couple. Table 3-3 shows the Federal SSI benefit from the beginning of the 

SSI Program until the present time. 

In calendar year 2002, about 818,050 applicants were awarded SSI benefits. 

Under previous law, new recipients received a prorated SSI benefit for the month in 

which they applied. For example, a person who applied on the 15th of the month 

could receive 2 weeks of benefits for that month. (The typical applicant did not get 

that money immediately because SSA might take several months to process the 

application.) The 1996 welfare reform law changes the effective date of an 

SSI application to the later of the first day of the month following the date the 

application is filed or the date the individual first becomes eligible for SSI benefits. 

BENEFITS FOR PERSONS LIVING IN THE HOUSEHOLD OF ANOTHER 

SSI law provides that if an applicant or recipient is “living in another 

person's household and receiving support and maintenance in kind from such 

person,” the Federal SSI benefit applicable to such individual or couple is 

two-thirds of the regular Federal SSI benefit. As shown in Table 3-3, the Federal 

SSI benefit in 2003 for those determined to be living in the household of another is 

$368 for an individual and $552.67 for a couple. 

 Regulations specify the criteria for determining when this reduced benefit 

applies. It does not apply to an individual who owns or rents, buys food separately, 

eats meals out rather than eating with the household, or pays a pro rata share of the 

household's food and shelter expenses. 

 In December 2002 4.2 percent, or about 285,000 SSI recipients, had their 

benefits determined on the basis of this "one-third reduction" benefit standard. 

Sixty-five percent of those recipients were receiving benefits on the basis of 

disability (See Table 3-4). 

BENEFITS FOR PERSONS LIVING IN A MEDICAID INSTITUTION

When individuals enter a hospital or other medical institution in which more 

than half of the bill is paid by the Medicaid Program, their monthly SSI benefit 

standard is reduced to $30, beginning with the first full calendar month of 

residence. This benefit, called a personal needs allowance (PNA), is intended to 

take care of small personal expenses, with the cost of maintenance and medical care 

being provided through Medicaid. The 1996 welfare reform law requires that 

children (under age 18) residing in medical institutions who have private medical 

insurance be eligible only for the $30 SSI PNA, just like those with Medicaid 

coverage. The Federal PNA benefit of $25 was increased to $30 a month on 

July 1, 1988Cthe first increase since the SSI Program began in 1974. The annual 

cost-of-living increase for SSI does not apply to the PNA. However, the 

1987 Budget Reconciliation Act provides that if a physician certifies that the 

recipient's stay in such a medical institution is not likely to exceed 3 months and 

they need to continue to maintain a home to which they may return, SSI benefits 
3-20 

will not be reduced and recipients will continue to receive full SSI benefits for up 

to the first 3 months of institutionalization. 

 Approximately 143,636 or 2.2 percent of SSI recipients received benefits 

as of December 2000 on the basis of this personal needs allowance. The average 

benefit was $21.80. For those individuals whose income from non-SSI sources 

exceeds the $30 benefit standard (including those who were receiving both Social 

Security and SSI before entering an institution), Medicaid regulations require States 

to allow SSI recipients (and other non-SSI Medicaid eligibles) to retain no less than 

$30 a month of their income as a “personal needs allowance” when their income is 

applied, along with Medicaid reimbursement, to pay for their institutional medical 

care. These regulations are applicable to individuals whose income from non-SSI 

sources exceeds the $30 benefit standard (including those who were receiving both 

Social Security and SSI before entering an institution). 

 Nineteen State programs have exercised their option to supplement the PNA. 

Prior to the 1985 Budget Reconciliation Act, SSI regulations would not allow for 

Federal administration of State PNA supplements. An amendment included in that 

legislation now requires SSA, at the request of a State, to administer such State 

supplementary payments. As of December 2002, California, the District of 

Columbia, Massachusetts, Michigan, New Jersey, New York, Rhode Island, and 

Vermont had opted for Federal administration. Approximately 30 States allow 

some or all of those individuals affected by the Medicaid PNA regulations to retain 

more than $30 a month. 

 BENEFITS OF FORMER RECIPIENTS OF STATE ASSISTANCE 

The essential person payment is a Federal benefit for an individual who was 

transferred to SSI from a former State Program of Aid to the Aged, Blind, or 

Disabled. As shown in Table 3-3, the Federal benefits of these persons are 

increased by up to $277 monthly in 2003 to take into account an “essential person” 

living in the household. 

Essential persons are those (generally an ineligible spouse or relative) who 

live with the eligible individual and who are considered necessary to provide 

essential care and services for the eligible individual and whose needs were taken 

into account in December 1973 in determining the need of the individual. Essential 

persons do not themselves receive SSI payments; rather, the standard of payment to 

which an eligible individual or couple is entitled is increased, and any income and 

resources of the essential persons are combined with those of the eligible individual 

or couple in calculating the amount for which the individual or couple is eligible. 

Eligibility for such increased payments apply only to a person included as 

an essential person in December 1973 and ends when the person no longer lives 

with the eligible individual, becomes eligible for SSI in his own right, or becomes 

the eligible spouse of an eligible individual. 

Some States have categories of State supplementation similar to the 

“essential persons” category for individuals transferred from the pre-SSI Program. 
3-21 

OVERPAYMENTS 

A provision in the 1984 Deficit Reduction Act established limits on recovery 

by the Social Security Administration (SSA) of overpayments made to SSI 

recipients. The amount of recovery in any month is now limited to the lesser of: 

 (1) the amount of the benefit for that month; or (2) an amount equal to 10 percent 

of the countable income (plus the SSI payment) of the individual (or couple) for 

that month. This limitation does not apply if there is fraud, willful 

misrepresentation, or concealment of information in connection with the 

overpayment. The recipient may request a higher or lower rate at which benefits 

may be withheld to recover the overpayment. 

FASTER INITIAL SSI (AND SOCIAL SECURITY) PAYMENTS 

Making initial payments faster for those who are presumptively or proven 

eligible is a goal of the SSI Program. The provisions for a one-time emergency 

advance payment continues to permit a faster response to presumptive or proven 

eligibility in new claims with critical needs. Pursuant to the 1996 welfare reform 

legislation, these emergency advance payments must be repaid through 

proportionate reductions in SSI benefits over a period of not more than 6 months. In 

fiscal year 2002, Social Security offices made 7,459 emergency advance payments 

using their third-party drafts in these new claims situations totaling $4,234,503 with 

an average payment amount of $569. 

Beginning in October 1985, local Social Security offices were given the 

authority to make "immediate payments" for Social Security and SSI cases at 

management's discretion when the local offices found that benefits were due but 

unpaid and an expedited Treasury payment would be too slow. "Immediate" usually 

means while the beneficiary waits or the next day at the latest. Payments are made 

using third-party drafts issued by the local field office. Payments are limited to the 

maximum per beneficiary of $999 or the amount due, whichever is less, once in a 

30-day period. The payment must be approved by office management. During fiscal 

year 2002, 85,726 Social Security and 82,598 SSI immediate payments were issued 

under this procedure. The total amount of these payments equaled $93,326,975 for 

an average of $554 per payment. 

STATE SUPPLEMENTATION 

Mandatory State Supplementation 

 State supplementary payments are required by law to maintain income levels 

of former State adult assistance recipients transferred to the Federal SSI Program. 

The purpose of these mandatory State supplements is to assure that no person 

suffers a reduction in income as result of the transfer to the SSI Program. 
TABLE 3-3--MONTHLY FEDERAL SSI BENEFIT RATES, 1974-2003 

[In Dollars] 

Individual Couple 

Own Household Another's Household Own Household Another's Household 

Medicaid 

Facility 

Essential person 

increment 

January 1974 $140.00 $93.34 $210.00 $140.00 $25.00 $70.00 July 1974 146.00 97.34 219.00 146.00 25.00 73.00 

July 1975 157.70 105.14 236.60 157.74 25.00 78.90 

July 1976 167.80 111.87 251.80 167.87 25.00 84.00 July 1977 177.80 118.54 266.70 177.80 25.00 89.00 

July 1978 189.40 126.27 284.10 189.40 25.00 94.80 

July 1979 208.20 138.80 312.30 208.20 25.00 104.20 

July 1980 238.00 158.67 357.00 238.00 25.00 119.20 

July 1981 264.70 176.47 397.00 264.67 25.00 132.60 

July 1982 284.30 189.54 426.40 284.27 25.00 142.50 

July 1983 304.30 202.87 456.40 304.27 25.00 152.50 

January 19841 314.00 209.34 472.00 314.67 25.00 157.00 

January 1985 325.00 216.67 488.00 325.34 25.00 163.00 

January 1986 336.00 224.00 504.00 336.00 25.00 168.00 January 1987 340.00 226.67 510.00 340.00 25.00 170.00 

January 1988 354.00 236.00 532.00 354.67 25.00 177.00 

January 1989 368.00 245.34 553.00 368.67 30.00 184.00 

January 1990 386.00 257.34 579.00 386.00 30.00 193.00 

January 1991 407.00 271.34 610.00 406.67 30.00 204.00 January 1992 422.00 281.34 633.00 422.00 30.00 211.00 

January 1993 434.00 289.34 652.00 434.67 30.00 217.00 

January 1994 446.00 297.34 669.00 446.00 30.00 223.00 January 1995 458.00 305.34 687.00 458.00 30.00 229.00 
January 1996 470.00 313.34 705.00 470.00 30.00 235.00 

January 1997 484.00 322.67 726.00 484.00 30.00 242.00 

January 1998 494.00 329.34 741.00 494.00 30.00 247.00 January 1999 500.00 333.34 751.00 500.67 30.00 250.00 

January 20002 513.00 342.00 769.00 512.67 30.00 257.00 

January 20012 531.00 354.00 796.00 530.67 30.00 266.00 

January 2002 545.00 363.34 817.00 544.67 30.00 273.00 

January 2003 552.00 368.00 829.00 552.67 30.00 277.00 

1Cost-of-living adjustments to Federal SSI benefit levels are rounded to the next lower whole dollar beginning with the increase effective January 1982 These figures reflect the correction of an error in the consumer price index. 

Source: Office of Research, Evaluation and Statistics, Social Security Administration. 
3-24 

TABLE 3-4--PERCENTAGE AND NUMBER OF PERSONS 

RECEIVING FEDERALLY ADMINISTERED PAYMENTS, BY 

LIVING ARRANGEMENT AND CATEGORY, 

DECEMBER 2002 

Reason for Eligibility Living Arrangement 1

 Total 

Aged Blind Disabled 

Own household 93.7 90.7 92.1 94.5 

Another's household 4.2 7.5 5.4 3.4 

Institutional care covered by 

Medicaid 2.1 1.8 2.5 2.1 

 Total percent 100.0 100.0 100.0 100.0 

 Total number 6,787,857 1,251,528 77,6582

 5,458,8713

1

 As defined for determination of Federal SSI payment standards. 

2

 Includes approximately 19,200 persons aged 65 or older. 

3

 Includes approximately 690,400 persons aged 65 or older. 

Source: Social Security Administration, Office of Research, Evaluation and Statistics, 

Division of SSI Statistics and Analysis. 

 Under mandatory supplementation rules, States are to maintain recipients of 

the Programs of Old-Age Assistance, Aid to the Blind, and Aid to the Permanently 

and Totally Disabled at their December 1973 income level. That level is the 

amount an individual received in December 1973 under the terms and conditions of 

the State plan in effect for the month of June 1973, plus her other income. Thus, 

State must provide a supplementary payment to any individual who, because of 

special needs or other reasons, had a December 1973 payment higher that the 

amount she received under the basic Federal SSI Program. 

 To remain eligible for Medicaid Federal matching funds, States were 

required to adopt a mandatory State supplementation program. In February 2003, 

approximately 1,200 recipients or less than 0.02 percent of all recipients were 

receiving federally administered payments based in part or solely on the mandatory 

supplementation rule. 

Optional State Supplementation

In addition to any mandatory supplementation States must provide, a State 

(or political subdivision) may choose to provide an optional supplement to Federal 

SSI payments. This optional supplement also is intended to help individuals meet 

needs which are not fully met by the Federal payment. The State determines 

whether it will make such a payment, to whom, and in what amount. States have 

the option of covering recipients of mandatory supplementation under their 

program of optional supplementation. 

At the present time, all but seven States and jurisdictions provide some form 

of optional State supplementation. States that provide no supplement are: Arkansas, 

Georgia, Kansas, Mississippi, Commonwealth of the Northern Mariana Islands, 

Tennessee, and West Virginia. States (or local jurisdictions) may elect to administer 

their supplementary payments themselves or may contract with SSA for Federal 

administration. Fourteen States and the District of Columbia have contracted with 
3-25 

SSA to administer the State optional supplementation program. Since the SSI 

Program began in 1974, eight States have shifted from Federal to State 

administration of their optional State supplementation program. 

Section 1618 of the Social Security Act requires States that have chosen to 

supplement the Federal SSI benefit to continue to provide supplementation and to 

maintain the supplementary payments (or spending for supplements) at specified 

levels. The purpose of section 1618 is to require States to pass along to SSI 

recipients the amount of any Federal benefit increase. Some States had not done 

this before the enactment of section 1618 on October 21, 1976 (Public Law 

94-585). Instead, when Congress enacted cost-of-living increases in the Federal 

SSI benefit amount, some States would reduce the levels of the State supplementary 

payments by the amount of the Federal benefit increase. Congress responded by 

enacting the section 1618 pass-along/maintenance-of-effort provision for State 

supplementary payments. 

Section 1618 allows States to comply with the pass along requirement by 

either (1) maintaining their State supplementary payment levels for specified types 

of living arrangements at or above March 1983 levels (sometimes referred to as the 

payment level method) or (2) maintaining their supplementary payment spending 

so that total annual Federal and State expenditures will be at least equal to what 

they were in the prior 12-month period plus any Federal cost-of-living increase, 

provided the State was in compliance for that period (sometimes referred to as the 

total expenditures method). In effect, section 1618 requires that once a State elects 

to provide supplementary payments, it must continue to do so. 

Under section 1618, a State that is found to be out of compliance under the 

maintenance-of-effort rules is subject to loss of its Federal Medicaid 

reimbursement. In California's case, a further “penalty” would be levied for failure 

to meet the pass along/maintenance-of-effort mandate. It would lose permission to 

“cash out” food stamp benefits for SSI recipients, and regular food stamp 

allotments would have to be offered to them. 

Variation in Payment Amount

In addition to categorical variations which may apply (i.e., aged, blind, 

disabled), a State may elect a number of variations in optional supplementary 

payments to account for specific differences in living costs to a recipient. The type 

and amount of the variations selected must be specified in the Federal-State 

agreement. A State may make variations in its payments to account for both 

geographic and living arrangement cost differences. 

A significant number of the aged, disabled, and blind receiving SSI cannot 

live alone because of mental or physical limitations and have a need for housing 

which includes services beyond room and board. These services often include 

supervision for daily living and protective services for the mentally retarded, 

chronically mentally ill, or the frail or confused elderly. Such nonmedical 

supervised and/or group living arrangements generally cost more than the Federal 

SSI benefit needs standard of $552 a month in 2003, and often more than the 

combined Federal and SSI State supplementation for those classified as living 
3-26 

independently. Thus, all but 10 of the 50 States and the District of Columbia have 

Federal- or State-administered State supplementation which is specifically directed 

at covering the additional cost of providing housing in a protective, supervised, or 

group living arrangement. 

These living arrangements are identified by a variety of terms including: 

adult foster care homes; domiciliary care homes; congregate care; group homes for 

the mentally retarded, and other terms. The amount of supplementation by the 

State also varies a great deal. For example, in 2001 in the State of Maryland under a 

State-administered supplementation program, a “specialized and intensive 

supervision” group living facility had a State supplementation of $666 a month in 

addition to the Federal benefit of $552. Thus, the maximum total Federal and State 

SSI payment in a month in Maryland is $1,218. In Oregon, for example, the State 

supplementation is less than $2 a month for those who need little supervision and 

care. However, in some States the cost of supervised group living care also is 

partially met by direct State funding of the staff. Some States make payments for 

nonmedical group care directly to private residential facilities based on a rate 

negotiated by the State with each facility. In such cases, there is often a PNA 

payment made directly to or on behalf of the residents of the facility. 

Administrative Fees

The Omnibus Budget Reconciliation Act of 1993 amended the State 

supplementation provision to provide for State payment for Federal administration 

of State supplementary payments. For fiscal year 1994, the administration fee was 

$1.67 per payment. The rate per payment rose to $3.33 for fiscal year 1995, and 

$5.00 for fiscal year 1996 and each succeeding year, or a different rate deemed 

appropriate for the State by the Commissioner. 

The Balanced Budget Act of 1997 (Public Law 105-33) increased the fee 

charged by the SSA to administer a State's supplementary SSI payments. For fiscal 

year 1998, the fee was $6.20. The rate per payment rose to $7.60 for 1999, 

$7.80 for 2000, $8.10 for 2001, and $8.50 for 2002. The fee for 2003 is $8.59 per 

payment. Each succeeding year, fees are indexed to increases in the Consumer 

Price Index or set at a different rate as determined by the Commissioner of Social 

Security. Amounts of fees collected in excess of $5 per check are credited to a 

special Treasury fund available for Social Security Administration administrative 

purposes. Such amounts are credited as a discretionary offset to discretionary 

spending to the extent that they are made available for expenditures in 

appropriation acts. 

Public Law 106-170 authorizes SSA to penalize States that are late in 

paying their administrative fees. Specifically, SSA may charge a State for whom it 

administers supplementary payments a penalty equal to 5 percent of the 

supplementary payment and administrative fees due if that State has not paid SSA 

the administrative fees it owes. States must pay SSA on the business day preceding 

the date that SSA pays monthly benefits, or for the last month in a State's fiscal 

year, the fifth business day following the date that SSA pays monthly benefits. 
3-27 

State SSI Supplement Levels Over Time

Throughout the period from July 1975 to January 2003, 22 States have 

continuously provided supplemental SSI payments to aged individuals living 

independently. 

During the period from July 1975 to January 2000, no State increased 

supplements faster than inflation for aged individuals living independently or aged 

couples living independently (see Tables 3-5 and 3-6). 

As of December 2002, there were 2,462,652 beneficiaries (36.3 percent) 

receiving a State supplement. For those SSI recipients, other than those receiving a 

State supplement because they are living in some type of group living arrangement, 

the amount of State supplement ranges from $1.70 a month to $362 a month for an 

individual. At present, 26 States and the District of Columbia supplement the 

Federal standard for individuals living independently. 

MAXIMUM SSI AND FOOD STAMP BENEFITS FOR INDIVIDUALS

LIVING INDEPENDENTLY 

Table 3-7 for individuals and Table 3-8 for couples illustrate by State the 

maximum potential payment from Federal SSI, State supplements, and food stamps 

for persons with no income. Approximately 65 percent of SSI households in the 

Food Stamp Program claim a shelter deduction for shelter expenses exceeding 

roughly one-third of their monthly income. About 3 percent of SSI households 

claim a medical cost deduction for out-of-pocket expenses over $35 per month. 

COMPARISON OF SSI PAYMENT LEVELS TO POVERTY THRESHOLDS 

 

Table 3-9 compares the Federal SSI benefit for a single individual to the 

Bureau of the Census poverty threshold. Both the poverty threshold and the benefit 

level are indexed to the Consumer Price Index. (The percentage increase for the 

poverty threshold and the SSI benefit increase varies slightly because of a 

difference in the method of calculation.) As a result of Public Law 98-21, SSI 

benefit levels were increased by $20 per month for individuals and $30 per month 

for couples in July 1983. They were further increased by 3.5 percent in 

January 1984. This explains why SSI benefits, in relation to the poverty level, 

increased to approximately 76 percent in 1984 compared to 72 percent in the 

1975 to 1980 period. In 2000, benefit levels were 76 percent of the poverty level. 

Table 3-10 presents the same information for a couple. The SSI benefit for a 

couple is 90 percent of the poverty threshold in 2002. 

 
TABLE 3-5--STATE SSI SUPPLEMENTS FOR AGED INDIVIDUALS WITHOUT COUNTABLE INCOME 

LIVING INDEPENDENTLY, SELECTED YEARS 1975-2002

State July 1975 July 1980 January 1985 January 1990 January 1992 January 1994 January 1996 January 1998 January 1999 January 2000 January 2001 January 2002 Percent Chan

1975-2002

Alaska 2 $142 $235 $261 $331 $362 $362 $362 $362 $362 $362 $362 $362 -20 California 101 182 179 244 223 157 156 156 176 180 181 205 -45 Colorado 27 55 58 54 56 56 56 39 36 36 37 37 -58 Connecticut 3 NA 102 141 366 325 301 NA 253 247 235 217 202 NA 

District of Columbia 0 15 15 15 15 15 5 0 0 0 0 0 NA Hawaii 17 15 5 5 5 5 5 5 5 5 5 5 -91 

Idaho 63 74 78 73 70 45 37 48 48 53 53 52 -76 

Illinois 3 NA NA NA NA NA NA NA NA NA NA NA NA NA 

Maine 10 10 10 10 10 10 10 10 10 10 10 10 -69 Massachusetts 111 137 129 129 129 129 126 129 129 129 129 129 -64 

Michigan 12 24 27 30 14 14 14 14 14 14 14 14 -64 Minnesota 4 31 34 35 75 81 81 81 81 81 81 81 81 -18 

Nebraska 67 75 69 38 30 21 12 8 27 7 7 8 -87 

Nevada 55 47 36 36 36 36 36 36 36 36 36 36 -79 

New Hampshire 12 46 27 27 27 27 27 27 27 27 27 27 -30 

New Jersey 24 23 31 31 31 31 31 31 31 31 31 31 -59 

New York 61 63 61 86 86 86 86 86 87 87 87 87 -55 

Oklahoma 27 79 60 64 64 57 54 53 53 53 53 53 -39 Oregon 17 12 2 2 2 2 2 2 2 2 2 2 -97 

Pennsylvania 20 32 32 32 32 32 27 27 27 27 27 27 -57 Rhode Island 31 42 54 64 67 64 64 64 64 64 64 64 -35 South Dakota 0 15 15 15 15 15 15 15 15 15 15 15 NA 
Utah 0 10 10 6 5 1 0 0 0 0 0 0 NA 

Vermont 29 41 53 63 65 55 47 55 55 58 59 59 -41 Washington 5 36 43 38 28 28 28 25 7 27 27 26 26 -77 

Wisconsin 70 100 100 103 93 85 84 84 84 84 84 84 -63 

Wyoming 0 20 20 20 20 10 10 10 10 10 10 10 NA  Median 31 43 36 37 32 31 31 31 31 31 31 31 -68 

1 The percentage change in constant dollars was computed by inflating July 1975 to January 2002 by the Consumer Price Index for All Urban Consume

(CPI-U). 

2 Through1982 the State supplement was less if shelter costs were below $35 monthly. 3 State decides benefit on a case-by-case basis. 4 State has two geographic payment levels—Hennepin County and the remainder of Minnesota. Level shown is for Hennepin County, the area with th

largest number of SSI recipients. 

5 State has two geographic payment levels—highest levels are shown in table. Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Countrie6 NA- Not available. 

Source: Office of Supplemental Security Income, Social Security Administration and Congressional Research Service calculations.
TABLE 3-6--STATE SSI SUPPLEMENTS FOR AGED COUPLES WITHOUT COUNTABLE INCOME LIVING 

INDEPENDENTLY, SELECTED YEARS 1975-2002 

State July 1975 July 1980 January 1985 January 1990 January 1992 January 1994 January 1996 January 1998 January 1999 January 2000 January 2001 January 2002 Percen

Chang

1975-20

Alabama $9 0 0 0 0 0 0 0 0 0 0 0 -100 Alaska 2 183 $338 $371 $484 $528 $528 $528 $528 $528 $528 $528 $528 -12 

California 251 389 448 588 557 440 396 415 450 460 469 515 -37 

Colorado 133 229 278 309 323 323 323 245 321 327 338 347 -20 Connecticut 3 NA NA 86 525 461 425 NA 353 343 325 298 277 NA 

District of Columbia 0 30 30 30 30 30 15 0 0 0 0 0 0 Hawaii 28 24 9 9 9 9 9 9 9 9 9 9 -90 Idaho 49 80 46 45 45 21 9 17 17 19 20 20 -88 

Illinois 3 NA NA NA NA NA NA NA NA NA NA NA NA NA 

Maine 15 15 15 15 15 15 15 15 15 15 15 15 -70 Massachusetts 173 214 202 202 202 202 197 202 202 202 202 202 -64 Michigan 18 36 40 45 21 21 28 28 28 28 28 28 -52 Minnesota 4 38 44 66 88 129 126 126 126 126 126 126 126 1 

Nebraska 67 114 100 65 48 40 14 98 13 0 0 0 -100 Nevada 106 90 74 74 74 74 74 74 74 74 74 74 -79 New Hampshire 0 42 21 21 21 21 22 21 21 21 21 21 NA New Jersey 13 12 25 25 25 25 25 25 25 25 25 25 -41 New York 76 79 76 102 103 102 103 103 104 104 104 104 -58 Oklahoma 54 158 120 128 128 114 108 106 106 106 106 106 -40 Oregon 17 10 0 0 0 0 0 0 0 0 0 0 -100 
Pennsylvania 30 49 49 49 49 49 44 44 44 44 44 4 -96 

Rhode Island 59 79 54 120 127 120 121 121 121 121 121 121 -37 South Dakota 0 15 15 15 15 15 15 15 15 15 15 15 NA Utah 0 20 10 12 11 5 5 5 5 5 5 5 NA Vermont 61 76 53 115 118 103 92 103 103 108 111 111 -44 Washington 5 40 44 38 22 22 22 20 21 21 21 20 20 -85 

Wisconsin 105 161 161 166 146 132 132 132 132 132 132 132 -62 Wyoming 0 40 40 40 19 25 25 25 25 25 25 25 NA  Median 57 63 66 65 49 39 28 44 28 28 28 25 -60 

1 The percentage change in constant dollars was computed by inflating July 1975 to January 2002 by the CPI-U price index. 2 Through 1983 the State supplement was less if shelter costs were below $35 monthly. 3 State decides benefit on a case-by-case basis. 4 State has various geographic payment levels. Level shown is for Hennepin County, the area with the largest number of SSI recipients. State 

supplemental SSI payment for individual whose entitlement began January 1, 1994. State supplemental for individuals whose entitlement began befJanuary 1, 1994 is an additional $15 per month. 

5 State has two geographic payment levels – highest levels are shown in table. Sum paid in King, Pierce, Ketsap, Snohomish, and Thurston Countie

NA- Not available. 

Source: Office of Supplemental Security Income, Social Security Administration and Congressional Research Service calculations.
3-32 

TABLE 3-7--MAXIMUM POTENTIAL SSI AND FOOD STAMP 

BENEFITS FOR AGED INDIVIDUALS LIVING 

INDEPENDENTLY, JANUARY 2000 1

Combined Benefits State Maximum SSI 

Benefit 

Food Stamp 

Benefit 2

Monthly Annual 

Alabama $512 $89 $600 $7,200 

Alaska 874 120 993 11,916 

Arizona 3

 512 89 600 7,200 

Arkansas 512 89 600 7,200 

California 692 04

 726 8,712 

Colorado 548 78 625 7,500 

Connecticut 747 18 7655

 9,180 

Delaware 512 89 600 7,200 

District of Columbia 512 89 600 7,200 

Florida 512 89 600 7,200 

Georgia 512 89 600 7,200 

Hawaii 517 159 676 8,112 

Idaho 5656

 73 637 7,644 

Illinois 5127 89 600 7,200 

Indiana 512 89 600 7,200 

Iowa 534 82 616 7,392 

Kansas 512 89 600 7,200 

Kentucky 512 89 600 7,200 

Louisiana 512 89 600 7,200 

Maine 522 86 607 7,284 

Maryland 512 89 600 7,200 

Massachusetts 641 50 690 8,280 

Michigan 526 84 610 7,320 

Minnesota 5938

 64 657 7,884 

Mississippi 512 89 600 7,200 

Missouri 512 89 600 7,200 

Montana 512 89 600 7,200 

Nebraska 519 87 605 7,260 

Nevada 548 78 626 7,512 

New Hampshire 539 81 619 7,428 

New Jersey 543 79 622 7,464 

New Mexico 512 89 600 7,200 

New York 599 63 661 7,932 

North Carolina 512 89 600 7,200 

North Dakota 512 89 600 7,200 

Ohio 512 89 600 7,200 

Oklahoma 565 73 637 7,644 

Oregon 514 88 601 7,212 

Pennsylvania 539 80 619 7,428 

Rhode Island 576 69 645 7,740 

South Carolina 512 89 600 7,200 

South Dakota 3

 527 84 611 7,332 

Tennessee 512 89 600 7,200 

Texas 512 89 600 7,200 

Utah 512 89 600 7,200 
3-33 

TABLE 3-7--MAXIMUM POTENTIAL SSI AND FOOD STAMP 

BENEFITS FOR AGED INDIVIDUALS LIVING 

INDEPENDENTLY, JANUARY 2000 1 -continued

Combined Benefits State Maximum SSI 

Benefit 

Food Stamp 

Benefit 2

Monthly Annual 

Vermont 5709 71 640 7,680 

Virginia 512 89 600 7,200 

Washington 53910 81 619 7,428 

West Virginia 512 89 600 7,200 

Wisconsin 596 63 659 7,908 

Wyoming 522 86 607 7,284 

1

 In most States these maximums apply also to blind or disabled SSI recipients who are 

living in their own households; but some States provide different benefit schedules for 

each category. 

2

 For one-person households, maximum food stamp benefits from October 1999 through 

September 2000 are $127 in the 48 contiguous States and the District of Columbia, $158 

in Alaska, and $199 in Hawaii. For the 48 contiguous States and the District of 

Columbia, the calculation of benefits assumes: (1) a ``standard'' deduction of $134 per 

month; (2) an excess deduction of $250 per month (the 2000 average deduction based on 

all claimed values for elderly individuals living alone). For Alaska and Hawaii, higher 

deduction levels were used, as provided by law ($663 and $546, respectively, for 

combined standard and excess shelter allowance). 

3

 January 2000 State supplemental payments unavailable. Calculations based on January 

1999 payment rates. 

4

 SSI recipients in California are ineligible for food stamps. California provides increased 

cash aid in lieu of stamps. 

5

 Individual budget process. 

6

 State disregards $20 of SSI payment in determining the State supplementary payment. 

7

 State decides benefits on case-by-case basis. 

8

 Payment level for Hennepin County. State has two geographic payment levels--one for 

Hennepin County and the other for the remainder of the State. 

9 State has two geographic payment levels--highest are shown in table. 

10 Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties. 

Source: Table prepared by the Congressional Research Service based on data from the 

Social Security Administration. 

TABLE 3-8--MAXIMUM POTENTIAL SSI AND FOOD STAMP 

BENEFITS FOR AGED COUPLES LIVING INDEPENDENTLY, 

JANUARY 2000 1

Combined Benefits State Maximum 

SSI Benefit 

Food Stamp 

Benefit 2

Monthly Annual 

Alabama $769 $126 $894 $10,728 

Alaska 1,297 23 1,320 15,840 

Arizona 3

 769 126 894 10,728 

Arkansas 769 126 894 10,728 

California 1,229 04

 1,216 14,592 

Colorado 1,096 28 1,123 13,476 

Connecticut 1,0945

 28 1,122 13,464 
3-34 

TABLE 3-8--MAXIMUM POTENTIAL SSI AND FOOD STAMP 

BENEFITS FOR AGED COUPLES LIVING INDEPENDENTLY, 

JANUARY 2000 1 - continued

Combined Benefits State Maximum 

SSI Benefit 

Food Stamp 

Benefit 2

Monthly Annual 

Delaware 769 126 894 10,728 

District of Columbia 769 126 894 10,728 

Florida 769 126 894 10,728 

Georgia 769 126 894 10,728 

Hawaii 778 254 1,031 12,372 

Idaho 7886

 120 908 10,896 

Illinois 7697

 126 894 10,728 

Indiana 769 126 894 10,728 

Iowa 813 113 925 11,100 

Kansas 769 126 894 10,728 

Kentucky 769 126 894 10,728 

Louisiana 769 126 894 10,728 

Maine 784 121 905 10,860 

Maryland 769 126 894 10,728 

Massachusetts 971 65 1,035 12,420 

Michigan 797 117 914 10,968 

Minnesota 8

 8809 92 972 11,664 

Mississippi 769 126 894 10,728 

Missouri 769 126 894 10,728 

Montana 769 126 894 10,728 

Nebraska 769 126 894 10,728 

Nevada 843 103 946 11,352 

New Hampshire 790 119 909 10,908 

New Jersey 794 118 912 10,944 

New Mexico 769 126 894 10,728 

New York 873 95 967 11,604 

North Carolina 769 126 894 10,728 

North Dakota 769 126 894 10,728 

Ohio 769 126 894 10,728 

Oklahoma 875 94 968 11,616 

Oregon 769 126 894 10,728 

Pennsylvania 813 113 925 11,100 

Rhode Island 890 90 979 11,748 

South Carolina 769 126 894 10,728 

South Dakota 3

 784 121 905 10,860 

Tennessee 769 126 894 10,728 

Texas 769 126 894 10,728 

Utah 774 124 897 10,764 

Vermont 87710 93 970 11,640 

Virginia 769 126 894 10,728 

Washington 79011 120 909 10,908 

West Virginia 794 118 912 10,944 

Wisconsin 769 126 894 10,728 

Wyoming 644 163 807 9,684 

 
3-35 

TABLE 3-8--MAXIMUM POTENTIAL SSI AND FOOD STAMP 

BENEFITS FOR AGED COUPLES LIVING INDEPENDENTLY, 

JANUARY 2000 1 – continued 1

 In most States these maximums apply also to blind or disabled SSI recipients who are 

living in their own households; some States provide different benefit schedules for each 

category. 

2

 For two-person households, maximum food stamp benefits from October 1999 through 

September 2000 are $234 in the 48 contiguous States and the District of Columbia, $290 

in Alaska, and $365 in Hawaii. For the 48 contiguous States and the District of 

Columbia, the calculation of benefits assumes: (1) a ``standard'' deduction of $134 per 

month, (2) an excess deduction of $274 per month (the 2000 average deduction based on 

all claimed values for elderly individuals not living alone). For Alaska and Hawaii, 

higher deduction levels were used, as provided by law ($663 and $546, respectively, for 

combined standard and excess shelter allowance). 

3

 January 2000 State supplemental payments unavailable. Calculations based on January 

1999 payment rates. 

4

 SSI recipients in California are ineligible for food stamps. California provides increased 

cash aid in lieu of stamps. 

5

 Individual budget process. 

6

 State disregards $20 monthly of SSI income in determining the State supplementary 

payment amounts. 

7

 State decides benefits on case-by-case basis. 

8

 State supplemental SSI payment for individuals whose entitlement began before 

January 1, 1994 is an additional $15 per month. 

9

 Payment level for Hennepin County. State has two geographic payment levels--one for 

Hennepin County and one for the remainder of the State. 

10 State has two geographic payment levels--highest levels are shown in table. 

11 Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties. 

Source: Table prepared by the Congressional Research Service based on data from the 

Social Security Administration. 

TRENDS IN THE SSI CASELOAD 

NUMBER OF RECIPIENTS 

 As shown in Table 3-11, in December 2002, nearly 6.8 million persons 

received federally administered SSI payments. Of these, about 1.3 million received 

federally administered payments on the basis of being aged, about 5.5 million on 

the basis of being disabled, and 78,000 on the basis of blindness. However, 

743,800 of those receiving benefits on the basis of disability or blindness were over 

the age of 65. 

 Table 3-11 also indicates that approximately 4.3 million of those receiving 

federally administered SSI payments received only Federal SSI payments, 

2.2 million received a combination of Federal and State payments, and 

283,000 received State supplements only. 
TABLE 3-9--COMPARISON OF COMBINED BENEFITS TO POVERTY THRESHOLDS FOR ELIGIBLE 

INDIVIDUALS RECEIVING SSI; SSI AND SOCIAL SECURITY; AND SSI, SOCIAL SECURITY, 

AND FOOD STAMPS, SELECTED YEARS 1975-2002 

Poverty Threshold 

and Benefits 1975 1980 1984 1988 1992 1996 1998 1999 2000 2001 2002 

Poverty Threshold1 $2,572 $3,941 $4,980 $5,672 $6,729 $7,309 $7,818 $7,990 $8,259 $8,494 $8,628 Federal SSI Benefits:  Dollars Per Year 1,822 2,677 3,768 4,248 5,064 5,640 5,928 6,000 6,156 6,372 6,540  Percent of Poverty 70.8 72.3 75.6 74.9 75.3 77.2 75.8 75.0 74.5 75.0 75.8 Federal SSI and Social Security: 

 Dollars Per Year 2,062 2,917 4,008 4,488 5,304 5,880 6,168 6,240 6,396 6,612 6,780  Percent of Poverty 80.2 74.0 80.5 79.1 78.8 80.4 78.8 78.0 77.4 77.8 78.6 Federal SSI, Social Security, and Food Stamps: 2

 Dollars Per Year 2,350 3,345 4,294 4,848 5,820 6,372 6,672 6,792 6,980 7,182 7,360  Percent of Poverty 91.4 84.9 86.2 85.5 86.5 87.2 85.3 85.0 84.5 84.6 85.3 1 Poverty threshold for individuals aged 65 and older. 2 In computing the food stamp benefit for 1975, average deductions among all elderly households are assumed. For later years (except 1996), 

the applicable standard deduction plus average among all elderly households is assumed. For 1999 the food stamp benefit calculation is based on the 2001 average elderly individual deduction, the most current available. For 1996 the applicable standard deduction plus average shelter and medical deductions among all SSI households is assumed. Source: Congressional Research Service. 
TABLE 3-10--COMPARISON OF COMBINED BENEFITS TO POVERTY THRESHOLDS FOR ELIGIBLE 

COUPLES RECEIVING SSI; SSI AND SOCIAL SECURITY; AND SSI, SOCIAL SECURITY, AND FOOD 

STAMPS; SELECTED YEARS 1975-2002 

Poverty Threshold and 

Benefits 1975 1980 1984 1988 1992 1996 1998 1999 2000 2001 2002 

Poverty Threshold $3,232 $4,954 $6,280 $7,156 $8,489 $9,221 $9,862 $10,070 $10,409 $10,705 $10,87Federal SSI Benefits:  Dollars Per Year 2,734 4,016 5,664 6,384 7,596 8,460 8,892 9,000 9,228 9,552 9,804  Percent of Poverty 84.6 81.1 90.2 89.2 89.5 91.7 90.1 89.3 88.7 89.2 90.2 Federal SSI and Social Security: 

 Dollars Per Year 2,974 4,256 5,904 6,624 7,836 8,700 9,132 9,240 9,468 9,792 10,044  Percent of Poverty 92.0 86.0 94.0 92.6 92.3 94.3 92.5 91.7 91.0 91.5 92.4 

Federal SSI, Social Security, and Food Stamps:

 Dollars Per Year 3,430 4,906 6,393 7,200 8,700 9,540 10,056 10,260 10,508 10,762 11,058 

 Percent of Poverty 106.1 99.0 101.8 100.6 102.5 103.5 101.9 101.8 101.0 100.5 101.7 

1 Poverty threshold for 2-person household with householder aged 65 and above and older and no related children under age 18. 2 In computing the food stamps benefit for 1975, average deduction among all elderly households are assumed. For later years (except 1996), the applica

standard deduction plus average shelter and medical deductions among all elderly household is assumed. For 2002, the food stamps benefit calculatio

based on 2001 average elderly couple deduction, the most current available. For 1996 the applicable standard deduction plus average shelter and medi

deductions among all SSI households is assumed. Source: Congressional Research Service. 
TABLE 3-11--NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED PAYMENTS, 

TOTAL AMOUNT, AND AVERAGE MONTHLY AMOUNT, 

BY SOURCE OF PAYMENT AND CATEGORY, DECEMBER 2002 

Category Age Source of Payment Total Aged Blind 1 Disabled 1 Under 18 18-64 65 or older 

Number of Persons

 Federal payment only 4,326,502 640,133 43,062 3,643,010 668,217 2,570,005 1,087,983  Federal payment and State 

 supplementation 2,179,022 511,519 29,127 1,638,376 243,974 1,169,651 765,397 

 State supplementation 282,630 99,876 5,469 177,285 2,630 138,096 141,904 

Total 6,787,857 1,251,528 77,658 5,458,671 914,821 3,877,752 1,995,284 

Total with 

Federal payment 6,505,227 1,151,652 72,189 5,281,386 912,191 3,739,656 1,853,380 

State supplementation 2,461,652 611,395 34,596 1,815,661 246,604 1,307,747 907,301 

Amount of Payments (Thousands of Dollars) 

 Federal payments 2,623,339 325,286 28,264 2,269,789 459,966 1,629,676 533,697  State supplementation 328,086 90,288 6,880 230,918 16,008 178,969 133,109 Total $2,951,425 $415,574 $35,144 $2,500,707 $475,974 $1,808,645 $666,806 

Average Monthly Amount 

 Federal payments 376.76 280.86 384.79 397.71 472.67 398.82 286.20 

 State supplementation 127.53 146.17 194.32 119.94 60.72 127.71 145.22 

Total $407.42 $330.04 $444.54 $424.75 $487.73 $427.73 $332.03 

1 Includes approximately 17,900 blind and 725,900 disabled persons aged 65 or older.2 Included retroactive payments. 3 Excludes retroactive payments. 

Source: Social Security Administration, Supplemental Security Records, 100 percent data. 
Table 3-12 shows the trends in the numbers of persons receiving federally 

administered SSI payments from December 1975 through December 2002, both by 

reason for eligibility and by age categories. There was a steady decline in the 

number of SSI recipients from 1975 until 1983. However, in the last 19 years the 

number of SSI recipients has increased from about 3.9 million to about 6.8 million, 

an increase of 74 percent. 

 

CHARACTERISTICS OF ADULT DISABLED AND BLIND RECIPIENTS 

 Major Disabling Diagnosis C As shown in Table 3-13, of the SSI disabled 

ages 18-64, 23.5 percent were eligible on the basis of mental retardation and 

36.6 percent on the basis of other mental disorders. Therefore, over 60 percent of 

all SSI disabled recipients are eligible on the basis of a mental disability. The next 

three largest categories are: diseases of the musculoskeletal system and connective 

tissuesC10.1 percent; diseases of the nervous system and sense organsC

8.4 percent; and diseases of the circulatory systemC5.2 percent. 

 In December 2002, 1.4 million or 23.6 percent of the adult disabled or blind 

receiving SSI benefits had a representative payee. Representative payees are 

individuals, agencies, or institutions selected by SSA to receive and use SSI 

payments on behalf of the SSI recipient when it has been found necessary by reason 

of the mental or physical limitations of the recipient. 

 Age C When a person who is receiving SSI on the basis of blindness or 

disability becomes age 65, SSA does not convert the individual to eligibility on the 

basis of age. As shown in Table 3-14, 16 percent of the SSI adult population 

receiving benefits on the basis of disability are age 65 or older (25.3 percent of the 

blind were age 65 or older). 

 Sex C In December 2002, 59.1 percent of those receiving SSI benefits on 

the basis of disability were women. 

 Race C In December 1999, the most recent available data showed that 

64 percent of those receiving SSI benefits on the basis of disability were white; 

30 percent were black; 6 percent other races. (Note: This is the same information 

that was in the 2000 edition of Green Book, and is still the most recent data 

available.) The 1999 race data came from the Survey of Income and Program 

Participation, matched to SSA program data on receipt of SSI benefits. They 

replace the previous series of numbers, which were based on SSA program data. 

The principle difference in the two sets of numbers is that Hispanics were coded as 

“other” in the older series, and may be of any race in the newer series. 

 Other Income C In December 2002, 30.3 percent of the disabled and 

34.3 percent of the blind on SSI also received Social Security benefits. Table 3-15 

shows the number of SSI recipients with other sources of income, both unearned 

and earned. 
TABLE 3-12--NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED SSI PAYMENTS BY 

CATEGORY AND AGE, SELECTED YEARS 1975-2002 

[In Thousands]

Reason for 

Eligibility and Age 

December 

 1975 

September 

 1983 

September 

 1986 

September 

 1990 

September 

 1994 

December 

 1998 

Decem

 200

Reason for Eligibility: 

Aged 2,307 1,528 1,476 1,452 1,470 1,332 1,25Blind 74 79 83 84 85 73 78 

Under 18 3 6 7 7 8 7 8 18-21 4 5 5 4 4 4 4 22-64 46 45 48 50 52 50 48 65 or Older 22 23 23 22 21 19 18 

Disabled 1,933 2,292 2,673 3,229 4,692 5,154 5,45

Under 18 104 191 231 287 812 880 907 

18-21 90 122 138 143 202 235 2422-64 1,559 1,517 1,787 2,218 3,049 3,359 3,58

65 or Older 179 462 517 579 629 684 72

Age: 

Under 18 107 197 238 294 820 887 9118-21 93 127 143 147 206 236 244 22-64 1,605 1,562 1,835 2,269 3,101 3,409 3,6365 or Older 2,508 2,013 2,016 2,051 2,120 2,035 1,99

Total 4,314 3,898 4,232 4,764 6,247 6,566 6,78

Source: Office of Research, Evaluation and Statistics, Social Security Administration. 
3-41 

TABLE 3-13--DISABILITY DIAGNOSIS OF SSI AND SECTION 1619 

DISABILITY RECIPIENTS, DECEMBER 2002 1 

[Percentage Distribution by Diagnostic Group]

Diagnostic Group All SSI Disabled 

18-64 yrs. 

SSI section 

1619(a) 

Participants 

SSI section 1619(b) 

Participants 

Infectious and Parasitic Diseases 2.0 1.6 2.0 

Neoplasms 1.2 1.0 1.2 

Endocrine, Nutritional, and Metabolic 

Disorders 4.5 2.2 2.6 

Mental Disorders: 

Schizophrenia 10.9 9.1 10.0 

Other Psychiatric 25.7 23.0 22.3 

Mental Retardation 23.5 39.3 35.7 

Diseases of: 

Nervous System and Sense Organs2

 8.4 11.7 11.4 

Circulatory System 5.2 1.6 2.0 

Respiratory System 2.4 1.0 1.1 

Digestive System 1.0 0.4 0.6 

Genito-Urinary System 1.2 1.2 1.4 

Musculoskeletal System and 

Connective Tissues 10.1 3.7 5.3 

Congenital Anomalies 0.5 0.8 0.8 

Injury and Poisoning 2.8 2.1 2.5 

Other 0.8 1.2 1.1 

Total Percent 2

 100.0 100.0 100.0 

Total Individuals 3,877,752 16,995 79,494 

1

 Most disabled recipients classified as blind are included in this category. A few blind recipients 

with a primary impairment (other than diseases of the eye) are coded in other categories. Also, a 

few recipients are classified with diseases of the eye, but their impairment does not meet the 

definition of blindness. 

2

 Includes only recipients whose diagnosis information is specifically identified on the source files. 

Source: Office of Supplemental Security Income, Social Security Administration. 

CHARACTERISTICS OF RECIPIENTS RECEIVING BENEFITS

ON THE BASIS OF AGE 

 Age C In December 2002, of SSI recipients receiving benefits on the basis 

of age (65 or older), 35.7 percent were 80 years of age or older (Table 3-14). 

 Sex C In December 2002, 70.1 percent of those receiving benefits on the 

basis of age were women. 

 Race C In December 1999, 58 percent of those receiving SSI on the basis of 

age were white; 26 percent were black; 16 percent were other races. (Note: this is 

the same information that was in the 2000 edition of the Green Book and is still the 

most recent information available). The 1999 race data came from the Survey of 

Income and Program Participation, matched to SSA program data on receipt of SSI 

benefits. They replace the previous series of numbers, which were based on SSA 

program data. The principle difference in the two sets of numbers is that Hispanics 
3-42 

were coded as “other” in the older series, and may be of any race in the newer 

series. 

 Other Income C In December 2002, 57.8 percent of SSI recipients 

receiving benefits on the basis of age also received Social Security benefits. 

Only 1.5 percent had earned income. 

TABLE 3-14--NUMBER AND PERCENTAGE DISTRIBUTION OF 

SSI RECIPIENTS RECEIVING FEDERALLY ADMINISTERED 

PAYMENTS BY CATEGORY AND AGE GROUP, 

DECEMBER 2002 

Adults

Sex and Age All 

recipients Aged Blind Disabled 

Blind and disabled, 

under age 18

All persons 

Total number 6,787,857 1,251,528 70,896 4,550,612 914,821 

Total percent 100.0 100.0 100.0 100.0 100.0 

Percentage distribution by sex 

Male 42 29.9 43.4 40.9 64.3 

Female 58 70.1 56.6 59.1 35.7 

Percentage distribution by age 

Under 5 2.2 ----- ----- ----- 16.1 

5-9 3.6 ----- ----- ----- 26.8 

10-14 5.0 ----- ----- ----- 36.9 

15-17 2.7 ----- ----- ----- 20.2 

18-21 3.6 ----- 6.0 5.3 ----- 

22-29 6.8 ----- 11.4 9.9 ----- 

30-39 10.5 ----- 14.9 15.4 ----- 

40-49 14.8 ------ 17.2 21.8 ----- 

50-59 14.6 ----- 17.2 21.5 ----- 

60-64 6.9 ----- 8.0 10.1 ----- 

65-69 7.6 15.3 7.0 7.0 ----- 

70-74 7.4 23.8 6.3 4.5 ------ 

75-79 6.3 25.3 4.9 2.4 ----- 

80 or Older 8.0 35.7 7.1 2.1 ----- 

Source: Social Security Administration, Office of Research, Evaluation and Statistics, 

Division of SSI Statistics and Analysis. 

CHARACTERISTICS OF CHILDREN RECEIVING BENEFITS 

To be eligible for SSI payments as a child, an individual must be under age 

18 (or under age 22 if a full-time student), be unmarried, and meet the SSI criteria 

for: disability or blindness; citizenship/residency; and income and resources. 

 At the end of SSI's first year (December 1974), 71,000 disabled and blind 

children received SSI benefits, less than 2 percent of the total SSI caseload. By 

December 1980, payments were made to almost 229,000 blind and disabled 

children, 5.5 percent of the SSI caseload. By December 1996, 1,018,000 blind and 

disabled children were eligible for SSI payments, nearly a fourteen fold increase 
3-43 

over December 1974. These children made up 15.4 percent of SSI recipients, and 

represented a fast growing segment of the SSI population. 

 Many analysts attribute the growth in the early and mid 1990s to outreach 

activities, the Supreme Court decision in the Zebley case (which mandated an 

individualized functional assessment process for children under age 18), expansion 

of the mental impairment category, and reduction in reviews of continuing 

disability. 

The rapid growth in the number of children receiving SSI, as well as the 

debate over the procedures by which children's eligibility should be judged, led 

Congress to enact provisions as part of the 1996 welfare reform law that changed 

the SSI Program with respect to disabled children (Public Law 104-193). This law 

discontinued the individualized functional assessment disability determination 

procedure. Under this procedure, persons whose impairments were not equivalent 

to those in the Federal “Listing of Impairments” were reviewed under a less 

stringent process. The 1996 law established a new (separate) disability definition 

for children (under age 18) which requires a child to have “a medically 

determinable physical or mental impairment which results in marked or severe 

functional limitations, and which can be expected to result in death or which has 

lasted or can be expected to last for a continuous period of not less than 

12 months.” Changes in the eligibility rules applied to new applications and 

pending requests for administrative and judicial review effective beginning August 

22, 1996. 

The 1996 law also required SSA to conduct one-time redeterminations of 

the eligibility of children already on the rolls who might not meet the new 

eligibility criteria. SSA also is required, on an ongoing basis, to conduct continuing 

disability reviews (CDRs) of low birth weight babies, all other children whose 

impairments are likely to improve, and 18 year olds. 

The Congressional Budget Office (CBO) estimated that the 1996 SSI 

reforms affecting children would result in direct (mandatory) Federal SSI savings 

of $7.4 billion over 6 years (fiscal years 1997-2002). However, after writing the 

regulations implementing the 1996 children's reforms, SSA estimated that about 

135,000 children (13 percent of SSI child recipients) would no longer qualify for 

SSI as a result of the new regulations. SSA expected the average number of SSI 

children to fall to 950,000 in fiscal year 1998, when the law became fully 

implemented, before rising again in subsequent years. SSA estimated that Federal 

program savings would amount to $4.8 billion over the 6-year period – not 

$7.4 billion as estimated by CBO. 

SSA estimated that 288,000 children receiving SSI needed to be 

redetermined under the new law. As of April 1, 2002, 101,000 (38 percent) of 

children who received notices of redetermination were found to be ineligible for 

SSI benefits. Virtually all administrative appeals on the redeterminations have 

been completed. 

The number of children receiving SSI payments, and the percentage of the 

caseload they represent, has declined from 955,174 (14.4 percent) in December 

1996 to 846,784 (12.8 percent) in December 2000, before rising again to 
3-44 

914,821 (13.5 percent) in December 2002. 

 In December 2002, 64.7 percent of SSI children were 12 years old or 

younger, and about 16 percent were under 5 years old. About 35.3 percent, an 

estimated 322,100 children, were between the ages of 13 and 17. Child recipients 

were more likely to be boys than girls by a ratio of about 3 to 2. 

 

 An estimated 81.9 percent of children lived in their parent's household. Less 

than 2 percent of the children were patients in a medical facility where more than 

half of the cost of their care was covered by the Medicaid Program. Another 

16.7 percent lived in other hospitals, nursing homes, residential schools, foster 

care, or independently. 

 The number of persons receiving federally administered SSI payments and 

unearned income, by type of income, is included in Table 3-16. 

About 26.7 percent of the children had some type of unearned income. The 

three major types of unearned income were: support from absent parents 

(11.8 percent), Social Security benefits (7.1 percent), and in-kind support and 

maintenance (7 percent). In addition, about 21 percent of children had income 

“deemed” from their parents. 

TABLE 3-15--PERSONS RECEIVING FEDERALLY 

ADMINISTERED SSI PAYMENTS AND ALSO RECEIVING 

OTHER INCOME, AND AVERAGE MONTHLY AMOUNT OF 

INCOME, BY SOURCE OF INCOME AND DISABILITY 

CATEGORY, DECEMBER 2002 

Source of Income Total Aged Blind Disabled 

SSI 6,787,857 1,251,528 77,658 5,458,671 

 Number with Other Income 

Social Security Benefits 2,406,327 723,022 26,600 1,656,705 

Other Unearned Income 793,012 234,491 8,728 549,793 

Earned Income 278,007 18,452 5,148 254,407 

 Percent with Other Income 

Social Security Benefits 35.5 57.8 34.3 30.3 

Other Unearned Income 11.7 18.7 11.2 10.1 

Earned Income 4.1 1.5 6.6 4.7 

 Average Monthly Other Income 

Social Security Benefits $413.96 $412.46 $430.55 $414.35 

Other Unearned Income 129.18 100.71 113.56 141.57 

Earned Income 316.79 309.92 567.53 312.21 

Source: Social Security Administration, Supplemental Security Record, 100 percent data. 
3-45 

TABLE 3-16--NUMBER OF PERSONS RECEIVING FEDERALLY 

ADMINISTERED SSI PAYMENTS AND UNEARNED INCOME 

(OTHER THAN SOCIAL SECURITY) AND AVERAGE MONTHLY 

UNEARNED INCOME, BY TYPE OF INCOME, DECEMBER 2002 

Type of Income Number Average Income 

Veterans Benefits 80,087 $178.62 

Income Based on Need 12,426 236.40 

Workers’ Compensation 5,053 370.98 

Support from Absent Parents 112,018 196.28 

Employment Pensions 59,721 159.61 

Support and Maintenance in Kind 241,488 126.55 

Asset Income 247,855 5.68 

Other 74,113 241.35 

Source: Social Security Administration, Office of Research, Evaluation and Statistics, 

Division of SSI Statistics and Analysis. 

OVERVIEW OF CASELOAD DEVELOPMENTS 

 In summary, the trends in the nature of the SSI population show the 

following: 

 A steady decline in the number of persons receiving SSI benefits on the 

basis of old age. 

 A recent decrease in the number of blind and disabled children under 18 

receiving SSI; from a high of 14.4 percent of total SSI recipients in 

December 1996 to 13.5 percent in December 2002. 

 A continuing increase in the number of persons ages 18-64 receiving 

benefits on the basis of disability or blindness. Between December 1989 

and December 2002, this group of beneficiaries grew by more than 

1,595,000 persons (from 50 percent to 57 percent of the recipient 

population). 

ELIGIBILITY OF DRUG ADDICTS AND ALCOHOLICS 

Under both the SSI and the Social Security Disability Insurance (DI) 

Programs, disability is defined as a mental or physical impairment that is so severe 

that it prevents an individual from doing any kind of work that exists in the national 

economy, taking into account age, education, and work experience. Prior to January 

1997, drug addiction and alcoholism were qualifying medical impairments under 

both SSI and DI. Thus, a person whose drug addiction or alcoholism was a 

contributing factor material to his disability was eligible for SSI. The SSI Program 

required that payments for drug addicts and alcoholics be made to a representative 

payee (i.e., a person or agency responsible for managing the recipient's finances), 

that recipients participate in treatment if available, and that the treatment be 

monitored. 

SSI provisions relating to drug addicts and alcoholics were contained in the 

original SSI law (Public Law 92-603). Initially, the Senate sought to exclude these 
3-46 

individuals from SSI by putting them in a separate services program. During 

debate on the 1972 legislation, Members of the Senate argued that these drug 

addicts and alcoholics would need treatment, case management, and close 

monitoring so that they would not use the SSI benefits to “support their alcoholism 

or addiction.” The Senate provision that excluded drug addicts and alcoholics from 

the SSI Program was deleted in favor of the House provision that required 

recipients to undergo treatment. The Senate's concern about providing direct 

payments to substance abusers was accommodated by the provision requiring that 

benefits be provided through representative payees. Although virtually all SSI 

recipients diagnosed as drug addicts or alcoholics received their payments via a 

representative payee, most representative payees were family members or friends of 

recipients, and it is suspected that some of them were likely to give in to threats, 

coercion, or persuasion of the recipient, thereby in some cases enabling recipients 

to obtain direct control of their SSI payments. 

In 1994, Congress responded to concerns that significant numbers of 

SSI and DI recipients were using their Federal cash payments to support their 

addictions by passing legislation (Public Law 103-296) that placed a 3-year time 

limit on program benefits to persons disabled solely because of their addiction to 

drugs or alcohol, extended requirements on treatment and monitoring to 

DI recipients, required DI recipients classified as substance abusers to receive their 

benefits through representative payees, encouraged organizations and agencies to 

act as representative payees for recipients classified as substance abusers, and 

temporarily or permanently ended benefits of recipients who failed to comply with 

treatment requirements. 

In 1996, Congress passed legislation that went even further by terminating 

drug and alcohol addiction as conditions that qualify individuals for SSI benefits. 

Under Public Law 104-121, individuals are not considered disabled for either 

SSI or DI if drug addiction or alcoholism is the contributing factor material to their 

disability. The law mandated the Commissioner of Social Security to require that 

persons who qualified for SSI or DI based on some other disabling condition, but 

who are nonetheless determined to have a drug or alcohol condition and are 

incapable of managing their own benefits, have a representative payee and be 

referred for treatment. The preferred representative payee for persons with a drug 

or alcohol condition who are not capable of managing their own benefits is an 

organization. Public Law 104-121 also authorized $50 million for fiscal year 1997 

and $50 million for fiscal year 1998 for drug treatment services. Recipients 

classified solely as drug addicts or alcoholics became ineligible for SSI beginning 

January 1, 1997. Applicants were no longer eligible for benefits beginning March 

29, 1996 if they were disabled solely on the basis of drug or alcohol addiction. 

 Following the passage of Public Law 104-121, SSA notified 

209,372 individuals who were receiving SSI or DI benefits based on drug addiction 

and/or alcoholism. (According to SSA, approximately 90,000 recipients of 

DICabout 47,000 of whom were also SSI beneficiariesCwere identified as drug 

addict and alcoholic beneficiaries in 1996. However, historical data on 

DI beneficiaries does not exist as the drug addict and alcoholic provisions of the 
3-47 

Social Security Act were not applicable until 1995.) As of April 2, 1999, 

approximately 140,978 beneficiaries responded to the notices. About 10,000 of 

these responses did not require medical determination because of erroneous 

coding of disability diagnosis or cessation of benefits before January 1, 1997. 

Of all beneficiaries identified as having a drug or alcohol addiction, SSA 

terminated benefits for 124,746 (59.6 percent) and continued benefits based on 

another disability for 83,746 (39.9 percent). Another 859 individuals qualified for 

benefits based on age. [These figures will change as the agency processes more 

appeals and hearing decisions.] 

ELIGIBILITY OF NONCITIZENS

Although the 1996 welfare reform law (Public Law 104-193) barred most 

noncitizens from receiving SSI, this prohibition was modified by 

Public Law 105-33, the Balanced Budget Act of 1997, for legal immigrants who 

were receiving SSI on August 22, 1996 and disabled legal immigrants who were 

living in the United States on August 22, 1996. The Noncitizen Benefit 

Clarification and Other Technical Amendments Act of 1998 (Public Law 105-306) 

provided continuing eligibility for SSI for nonqualified aliens who were receiving 

benefits on August 22, 1996. For more information on provisions and issues related 

to noncitizens, see Appendix J. 

ELIGIBILITY OF THE HOMELESS

SSA field offices have established a variety of activities and special 

procedures to reduce the problems faced by homeless individuals in obtaining 

Social Security or SSI benefits for which they are eligible. 

Field offices and DDSs throughout the nation also have established liaisons with 

various organizations to assist homeless populations in applying for and 

maintaining entitlement to DI and SSI benefits. In support of the President=s 

initiative to end chronic homelessness within 10 years, SSA participates in the 

Interagency Council on Homelessness. SSA received $8 million dollars in the 

fiscal year 2003 SSI appropriation to administer a competitive demonstration grants 

program to provide outreach and application assistance to the homeless and other 

underserved populations. 

SPECIAL SSI PROVISIONS FOR THE WORKING DISABLED

EARNED INCOME DISREGARDS 

Since SSI began in 1974, the first $65 of monthly earned income (or, up to 

the first $85 if the recipient has no unearned income) plus one-half of the remaining 

earnings have been disregarded in determining eligibility for and the amount of SSI 

benefits. In addition, all work-related expenses are disregarded in the case of blind 

persons and impairment-related work expenses are disregarded in the case of 
3-48 

disabled persons. Finally, income and resources set aside under a plan for achieving 

self-support (PASS) are excluded. 

ELIMINATING WORK DISINCENTIVES 

Prior to enactment of the section 1619 program in 1980 on a temporary 

3-year basis (see below), a disabled SSI recipient who worked faced a substantial 

risk of losing both SSI cash benefits and Medicaid. Work was treated the same way 

it was under the Social Security Disability Insurance Program: after a trial work 

period, work at the level of substantial gainful activity ($800 or more of earnings 

per month; $300 per month before January 1990) led to the loss of disability status 

even if the individual's total income and resources were within SSI Program limits. 

Loss of SSI disability status caused loss of categorical Medicaid eligibility as well. 

Thus, disabled individuals had a disincentive to work because of their fear of losing 

SSI and Medicaid. 

In response to this work disincentive, in 1986 Congress enacted 

Public Law 99-643 which added section 1619 to the Social Security Act. Under this 

provision, SSI recipients who work can continue to receive benefits even if their 

earnings are at or above the level of substantial gainful activity and as long as there 

is not a medical improvement in the disabling condition. Under the income 

disregard formula, the amount of their cash benefits is gradually reduced as 

earnings increase until their countable earnings reach the SSI benefit standard or 

what is known as the “break-even point.” In a State with no supplementation, as 

shown in Table 3-2, this earned income eligibility limit is $1,189 per month in 

2003 for a person who has no unearned income. People who receive section 1619 

benefits continue to be eligible for Medicaid on the same basis as regular 

SSI recipients. If States supplement the Federal benefits standard, the “break-even 

point” increases $2 for every $1 of State supplementation above the Federal 

benefit standard. 

Under section 1619(b), blind and disabled individuals can continue to be 

eligible for Medicaid even if their earnings take them past the SSI income disregard 

"break-even point." In some 209(b) States, workers may lose Medicaid eligibility 

before attaining 1619 (a) or (b) status if they did not have Medicaid coverage the 

month before section 1619 status began, thus making this provision inoperable for 

those workers. Special eligibility status granted by section 1619(b), under which 

the individual is considered a blind or disabled individual receiving SSI benefits for 

purposes of Medicaid eligibility, applies as long as the individual: (1) continues to 

be blind or have a disabling impairment; (2) except for earnings, continues to meet 

all the other requirements for SSI eligibility; (3) would be seriously inhibited from 

continuing to work by the termination of eligibility for Medicaid services; and 

(4) has earnings that are not sufficient to provide a reasonable equivalent of the 

benefits (SSI, State supplementary payments, Medicaid, and publicly funded 

attendant care) that would have been available if he did not have those earnings. 
3-49 

In making an initial determination under the fourth criterion, SSA decided to 

compare the individual's gross earnings to a “threshold” amount. The threshold 

amount is the amount of gross earnings, after the monthly $20 general income, 

$65 earned income, and one-half of the remainder exclusions are applied, that it 

would take to reduce to zero the Federal SSI benefit and State supplementary 

payment plus the average Medicaid expenditures for disabled SSI cash recipients 

for the State of residence. If the individual's earnings exceed this threshold, an 

individualized threshold is calculated which considers the person's actual Medicaid 

use, the State supplement rate for the person's actual living arrangement, and the 

value of publicly funded attendant care available to the person in the absence of 

earnings. In determining a person’s income to compare to the individualized 

threshold, any applicable exclusions are deducted from earnings, including work 

expenses if the person is blind, impairment-related work expenses, and income set 

aside under a plan for achieving self-support. 

In other words, Medicaid eligibility continues until the individual’s 

earnings reach a higher plateau which takes into account the person's ability to 

afford both medical care and normal living expenses. 

A disabled individual also has the ongoing protection of being able to be 

reinstated to eligibility for cash assistance benefits under regular SSI or 1619(a), or 

Medicaid only eligibility under 1619(b) if her work attempt fails or the physical or 

mental disability causes a pattern of erratic work. This protection is not indefinite, 

but SSA cannot terminate the disability status of an individual for 12 months after 

her most recent determination of eligibility for regular SSI or under section 1619 

(a) or (b). However, if the individual recovers medically, a new application and 

new disability determination would be required to establish a new period of 

eligibility once the individual has been off the rolls for 12 months or more. 

The ticket to work law enacted in 1999 (Public Law 106-170) contains a 

number of provisions designed to eliminate work disincentives that existed in the 

SSI Program. Under this law an individual whose eligibility for SSI benefits, 

including eligibility under section 1619(b), has been terminated due to 

12 consecutive months of suspension for excess income from work activity, may 

request reinstatement of SSI benefits without filing a new application. To be 

eligible for this expedited reinstatement of benefits, an individual must have 

become unable to continue working due to a medical condition and must file the 

application for reinstatement within 60 months of the termination of benefits. 

The ticket to work law also requires SSA to establish a community-based 

Work Incentive Planning and Assistance Program to provide individuals with 

information on SSI work incentives. Specifically, SSA must establish a corps of 

work incentive specialists within the agency and a program of grants, cooperative 

agreements, and contracts to provide benefit planning and assistance to individuals 

with disabilities and outreach to individuals who may be eligible for the Work 

Incentive Program. 

 SSA is authorized by the ticket to work law to make grants directly to qualified 

protection and advocacy programs to provide services and advice to SSI 

beneficiaries about vocational rehabilitation, employment services, and obtaining 
3-50 

employment. 

States have the option of covering additional groups of working individuals 

under Medicaid. The ticket to work law allows States to provide Medicaid coverage 

to working individuals with disabilities who, except for their earnings, would be 

eligible for SSI and to working individuals with disabilities whose medical 

conditions have improved. Individuals covered under this new option could buy 

into Medicaid coverage by paying premiums or other cost-sharing charges on a 

sliding fee scale based on income established by the State. States are permitted to 

allow working individuals with incomes above 250 percent of the Federal poverty 

level to buy into the Medicaid Program. 

SPECIAL BENEFITS FOR CERTAIN WORLD WAR II VETERANS 

Section 251 of Public Law 106-169, enacted on December 14, 1999, 

provides special benefits to certain World War II veterans who served in the U.S. 

military during the period beginning September 16, 1940 and through 

July 24, 1947, or who served in the organized military of the Philippines during the 

period beginning July 26, 1941 and through December 30, 1946. The special 

benefits are payable each month after April 2000 that these veterans reside outside 

the United States. 

In order to be eligible for the special benefits, an individual must: (1) be age 

65 or older on December 14, 1999 (the date Public Law 106-169 was enacted); 

(2) be a World War II veteran as described above; (3) file an application for the 

special veterans benefits and be eligible for SSI for that month; (4) be eligible for 

SSI in December 1999; and (5) not have other benefit income above 75 percent of 

the current SSI Federal benefit rate. 

Qualified veterans receive a monthly benefit equal to 75 percent of the 

current SSI Federal benefit rate less the amount of their benefit income for the 

month. The maximum benefit under this formula for 2003 is $414. There is no 

provision for the payment of benefits to dependents or survivors. “Benefit income” 

means any recurring payments such as annuities, pensions, retirement, or disability 

benefits that the veteran received during the 12-month period immediately before 

applying for special benefits, or payments received later that are similar to benefits 

received during the 12-month period. 

MEASURES OF SSI PARTICIPATION AND GROWTH

SSI PARTICIPATION RATES 

Table 3-17 shows several measures of Federal SSI participation among the 

elderly and the total population. The numerator in the first three columns is the 

sum of columns 2 and 4 in Table 3-19. Thus, the number of SSI aged participants 

includes the disabled and blind population over age 65. Column 1 simply divides 

the SSI aged participants by the total number of elderly. That rate declined from 

11.1 percent in 1975 to 6.5 percent in 1989, primarily as a result of increasing 
3-51 

incomes among the aged and decreasing participation among low-income elderly. 

The rate was 5.6 percent in 2001. Column 2 presents the number of elderly 

SSI recipients divided by the number of poor elderly. This rate declined from 

76 percent in 1975 to 54 percent in 1982. Between 1982 and 1984, this percentage 

increased, perhaps as a result of outreach efforts mandated by the 1983 Social 

Security Amendments (Public Law 98-21). Since 1985 the rate fluctuated between 

53 percent and 64 percent and was 58 percent in 200. This rate is a gross measure 

of participation, in that it does not control for other SSI eligibility factors such 

as assets or the under counting of income. 

The denominator for column 3 is the number of individuals age 65 and older 

who live in aged-only households and who would be in poverty without 

SSI benefits. This rate has fluctuated between 73 percent and 60 percent since 

1979, and was 68 percent in 2001. 

TABLE 3-17--PERCENTAGE OF GENERAL POPULATION 

ENROLLED IN SSI, SELECTED YEARS 1975-2001 

Year Among All 

Elderly Among ElderlyPoor Among Pretransfer 

Elderly 

Among Entire 

Population 

1975 11.1 75.6 NA 2.0 

1980 8.7 57.5 64.7 1.8 

1985 7.1 58.7 64.5 1.7 

1990 6.6 56.3 63.3 1.9 

1991 6.8 55.0 61.1 2.0 

1992 6.5 52.7 60.0 2.2 

1993 6.7 56.3 63.7 2.3 

1994 6.4 57.8 65.7 2.4 

1995 5.9 59.9 71.5 2.4 

1996 5.9 60.0 69.5 2.4 

1997 5.9 59.9 68.2 2.4 

1998 5.9 60.0 69.5 2.4 

1999 5.9 63.8 72.7 2.4 

2000 5.7 60.5 68.4 2.3 

2001 5.6 58.4 67.8 2.4 

NA- Not available. 

Source: Congressional Research Service. 

The final column of Table 3-17 shows the number of SSI participants as a 

percentage of the total population. The numerator for this calculation is the first 

column of Table 3-19. The percentage of the entire population receiving 

SSI benefits declined from 2.0 percent in 1975 to 1.7 percent for the 1982-85 time 

period, but increased to 2.5 percentCits highest level everCin 1995 and 1996. In 

2001, 2.4 percent of the population received SSI benefits. 

Table 3-18 shows the percentage of a given State's population receiving 

SSI benefits for selected years. 
3-52 

TABLE 3-18--PERCENTAGE OF GENERAL POPULATION 

ENROLLED IN SSI BY STATE, SELECTED YEARS 1975-2002 

State 1975 1985 1990 1993 1996 1999 2002 

Alabama 3.98 3.29 3.29 3.64 3.91 3.71 3.65 

Alaska 0.81 0.65 0.84 0.96 1.20 1.33 1.49 

Arizona 1.24 1.04 1.22 1.54 1.71 1.69 1.60 

Arkansas 4.09 3.14 3.23 3.66 3.80 2.72 3.15 

California 3.09 2.59 2.93 3.14 3.29 3.24 3.21 

Colorado 1.37 0.93 1.14 1.38 1.52 1.41 1.20 

Connecticut 0.76 0.83 0.98 1.19 1.41 1.46 1.45 

Delaware 1.19 1.21 1.21 1.34 1.58 1.59 1.55 

District of Columbia 2.23 2.51 2.67 3.21 3.76 3.83 3.56 

Florida 1.86 1.62 1.71 2.06 2.44 2.45 2.35 

Georgia 3.27 2.56 2.46 2.65 2.74 2.59 2.32 

Hawaii 1.08 1.08 1.25 1.40 1.64 1.70 1.73 

Idaho 1.06 0.84 1.03 1.28 1.46 1.44 1.45 

Illinois 1.22 1.18 1.55 2.00 2.28 2.14 2.00 

Indiana 0.83 0.87 1.09 1.39 1.56 1.51 1.47 

Iowa 1.00 0.96 1.18 1.37 1.49 1.43 1.42 

Kansas 1.05 0.87 0.99 1.26 1.51 1.39 1.37 

Kentucky 2.83 2.65 3.11 3.71 4.37 4.37 4.32 

Louisiana 3.90 2.87 3.15 3.84 4.21 3.92 3.73 

Maine 2.31 1.89 1.93 2.17 2.23 2.35 2.38 

Maryland 1.17 1.16 1.25 1.44 1.67 1.69 1.65 

Massachusetts 2.30 1.91 1.98 2.40 2.73 2.72 2.61 

Michigan 1.31 1.35 1.54 1.93 2.23 2.16 2.12 

Minnesota 1.00 0.78 0.92 1.17 1.38 1.36 1.33 

Mississippi 5.21 4.28 4.42 4.98 5.23 4.83 4.47 

Missouri 2.10 1.58 1.66 1.96 2.18 2.06 2.02 

Montana 1.12 0.92 1.25 1.44 1.63 2.14 1.58 

Nebraska 1.06 0.88 0.99 1.19 1.33 1.27 1.26 

Nevada 1.00 0.85 0.95 1.14 1.36 1.37 1.31 

New Hampshire 0.67 0.62 0.62 0.77 0.95 0.96 0.97 

New Jersey 1.11 1.23 1.36 1.66 1.84 1.80 1.73 

New Mexico 2.29 1.83 2.08 2.39 2.67 2.65 2.62 

New York 2.24 2.00 2.31 2.85 3.33 3.35 3.27 

North Carolina 2.71 2.21 2.24 2.47 2.67 2.56 2.32 

North Dakota 1.25 0.96 1.17 1.34 1.41 1.33 1.29 

Ohio 1.22 1.19 1.44 1.84 2.28 2.19 2.12 

Oklahoma 3.03 1.81 1.92 2.13 2.28 2.19 2.11 

Oregon 1.12 0.95 1.11 1.35 1.52 1.53 1.59 

Pennsylvania 1.24 1.39 1.60 1.90 2.23 2.31 2.43 

Rhode Island 1.72 1.62 1.74 2.05 2.53 2.71 2.70 

South Carolina 2.84 2.60 2.59 2.80 3.04 2.84 2.59 

South Dakota 1.32 1.19 1.45 1.72 1.92 1.77 1.68 

Tennessee 3.24 2.71 2.87 3.22 3.40 3.09 2.80 

Texas 2.23 1.57 1.73 2.00 2.16 2.07 1.97 

Utah 0.76 0.53 0.73 0.94 1.05 0.97 0.91 

Vermont 1.93 1.76 1.79 2.08 2.19 2.15 2.07 

Virginia 1.53 1.49 1.54 1.76 2.00 1.95 1.82 
3-53 

TABLE 3-18--PERCENTAGE OF GENERAL POPULATION 

ENROLLED IN SSI BY STATE, 

 SELECTED YEARS 1975-2002-continued

State 1975 1985 1990 1993 1996 1999 2002 

Washington 1.46 1.09 1.27 1.50 1.72 1.73 1.73 

West Virginia 2.37 2.24 2.63 3.17 3.78 3.92 4.08 

Wisconsin 1.44 1.50 1.75 2.04 1.86 1.70 1.60 

Wyoming 0.67 0.45 0.76 1.04 1.24 1.22 1.16 

Total 1

 2.00 1.74 1.94 2.26 2.50 2.41 2.35 1

 The total number of SSI recipients used to calculate the total recipiency rate includes a 

certain number of recipients whose State is unknown. For 1975, 1985, 1990, and 1993, the 

numbers of unknown (in thousands) respectively were 256, 14, 0, and 91.

Source: Social Security Administration, Ways and Means Committee staff, and 

Congressional Research Service. Percentages are calculated as the average number of 

monthly SSI recipients over the population of each State in July of the selected year. For 

2002, percentages are calculated as the number of SSI recipients in July 2002 divided by the 

total population of each State in July 2002. 

CHANGES IN NUMBER OF RECIPIENTS, 1970-2002 

SSI is one of the largest cash assistance programs for the poor and, until 

recently, was one of the fastest growing entitlement programs (see Table 3-12 

above); program costs grew 20 percent annually from 1991 through 1994. 

According to GAO, three groups accounted for nearly 90 percent of the SSI 

Program's growth between 1986 and 1993: adults with mental impairments, 

children, and noncitizens. These groups grew at an annual average rate of 11.0, 

16.4, and 15.5 percent, respectively, from 1986 through 1993, compared with 4.9 

percent for all SSI recipients. The SSI recipient population also changed 

dramatically: disabled recipients now account for nearly 80 percent of recipients. 

The GAO report found that SSI recipients now tend to be younger, stay on SSI 

longer, receive larger benefits, and depend more on SSI as a primary source of 

income. Factors contributing to caseload growth include the following: expansion 

in disability eligibility, notably for mentally impaired adults and for children; 

increased outreach by SSA; lack of effort to help recipients return to work; 

infrequent reviews of cases to confirm that the disability is continuing; immigration 

growth; and transfers from State programs, among others (U.S. General Accounting 

Office, 1995). 

Table 3-19 illustrates the changes in the number of individuals receiving 

assistance under the federally administered SSI Program and prior programs. The 

total number of individuals receiving assistance was 3.1 million in 1970; this 

number increased to 4.3 million in 1975 and declined to 3.9 million in 1982. Since 

then, the number of SSI recipients has grown each year. In 2002, there were nearly 

6.8 million SSI recipients. Despite this overall growth, the number of aged 

receiving SSI has declined sharply since 1975 from 2.3 million (or 2.5 million if 

disabled and blind persons over age 65 are counted as aged) to 1.25 million 

individuals in 2002 (approximately 2.0 million if disabled and blind persons over 

65 are counted). Meanwhile, the number of blind or disabled receiving assistance 

increased sharply. 
3-54 

TABLE 3-19--NUMBER OF PERSONS RECEIVING FEDERALLY 

ADMINISTERED SSI PAYMENTS AND ADULT ASSISTANCE 

UNDER PRIOR PROGRAMS, SELECTED YEARS 1970-2008 

[In Thousands]

Blind or Disabled 

Year 1 Total 2 Aged 3

Total 4

 65 or Older 5 Federal SSI 6 State Supplemental 

Only 

1970 3,098 2,082 1,016 ----- ----- ----- 

1972 3,182 1,934 1,248 ----- ----- ----- 

1974 3,996 2,286 1,710 7 8 8

1976 4,236 2,148 2,088 249 3,799 437 

1978 4,217 1,968 2,249 344 3,755 462 

1980 4,142 1,808 2,334 419 3,682 460 

1982 3,858 1,549 2,309 462 3,473 384 

1984 4,029 1,530 2,499 507 3,699 331 

1986 4,269 1,473 2,796 540 3,922 348 

1988 4,464 1,433 3,030 573 4,089 375 

1990 4,817 1,454 3,363 605 4,412 405 

1992 5,566 1,471 4,095 628 5,202 364 

1994 6,296 1,466 4,830 653 5,965 331 

1996 6,614 1,413 5,201 678 6,326 288 

1998 6,566 1,332 5,154 701 6,289 277 

2000 6,602 1,289 5,312 722 6,320 282 

2002 6,788 1,252 5,563 744 6,505 283 

20049

 7,059 1,221 5,838 768 6,771 289 

20069

 7,243 1,202 6,041 800 6,946 296 

20089 7,390 1,192 6,198 842 7,085 305 1

 Data as of December of each year. 

2

 Totals may not equal components due to rounding and/or federally administered State 

supplementation for 1974-2008. For 1970-72, the total is the number of recipients under the 

Old-Age Assistance and Aid to the Blind and Aid to the Permanently and Totally Disabled 

Programs.

3

 For 1970-72, this column is the number of recipients under the Old-Age Assistance Program. 4

 For 1970-72, this column is the number of recipients under the Aid to the Blind and Aid to the 

Permanently and Totally Disabled Programs.

5

 Number of age 65 or older individuals included in the blind or disabled category. 6

 All persons with Federal SSI payments, including those receiving Federal payments only or both 

Federal SSI and federally administered State supplementation.

7

 Data not available for December 1974. In January 1974, there were 87,000 blind and disabled 

recipients aged 65 or older.

8

 Data not available.

9

 For 2004-2008, data are projections based on the President's budget estimates of February 2003.

Source: Office of the Actuary, Social Security Administration. 

The number of persons receiving SSI payments, by State, in 

December 2002 is provided in Table 3-20. 
3-55 

TABLE 3-20--NUMBER OF PERSONS RECEIVING SSI PAYMENTS, 

BY STATE, DECEMBER 2002 

Federally Administered State 

Total Aged Blind Disabled 

State-Administered 

Total 

Alabama 163,740 22,729 1,073 139,938 590 

Alaska 9,658 1,568 114 7,976 15,329 

Arizona 88,054 13,248 933 73,873 457 

Arkansas 85,107 12,108 926 72,073 ----- 

California 1,135,834 342,142 21,955 771,697 ----- 

Colorado 53,689 8,663 550 44,476 32,848 

Connecticut 50,368 6,960 494 42,914 18,485 

Delaware 12,565 1,327 113 11,125 ----- 

District of Columbia 20,221 2,281 190 17,750 ----- 

Florida 396,976 95,691 3,237 298,048 15,224 

Georgia 198,599 30,900 2,192 165,507 ----- 

Hawaii 21,566 6,597 190 14,779 ----- 

Idaho 19,394 1,782 200 17,412 11,184 

Illinois 252,200 31,450 2,418 218,332 32,986 

Indiana 90,893 6,596 1,031 83,266 1,140 

Iowa 41,596 4,058 812 36,726 4,458 

Kansas 37,063 3,566 383 33,114 ----- 

Kentucky 176,768 16,635 1,374 158,759 4,657 

Louisiana 166,884 21,945 1,832 143,107 5,044 

Maine 30,935 2,987 230 27,718 32,557 

Maryland 89,705 15,542 725 73,438 2,973 

Massachusetts 167,027 45,024 4,059 117,944 ----- 

Michigan 213,568 18,173 1,835 193,560 196,011 

Minnesota 67,011 9,903 719 56,389 38,579 

Mississippi 127,123 19,134 1,159 106,830 ----- 

Missouri 114,127 11,271 973 101,883 8,969 

Montana 14,220 1,260 134 12,826 ----- 

Nebraska 21,659 2,265 241 19,153 5,574 

Nevada 29,154 7,569 698 20,887 ----- 

New Hampshire 12,316 958 129 11,229 16,784 

New Jersey 148,115 33,957 1,040 113,118 ----- 

New Mexico 48,790 8,761 536 39,493 177 

New York 625,234 136,363 3,194 485,677 ----- 

North Carolina 192,595 30,031 2,009 160,555 24,025 

North Dakota 8,090 1,203 83 6,804 355 

Ohio 241,476 16,383 2,142 222,951 ----- 

Oklahoma 73,630 9,520 812 63,298 72,771 

Oregon 56,218 7,580 633 48,005 16,972 

Pennsylvania 301,981 34,156 2,374 265,451 ----- 

Rhode Island 28,747 4,349 204 24,194 ----- 

South Carolina 105,888 14,860 1,535 89,493 3,276 

South Dakota 12,666 1,852 105 10,709 3,614 

Tennessee 161,673 20,160 1,660 139,853 ----- 

Texas 435,844 112,708 6,044 317,092 5,160 

 
3-56 

TABLE 3-20--NUMBER OF PERSONS RECEIVING SSI PAYMENTS, 

BY STATE, DECEMBER 2002-continued

Federally Administered State 

Total Aged Blind Disabled 

State-Administered 

Total 

Utah 21,003 2,124 261 18,618 ----- 

Vermont 12,711 1,416 109 11,186 ----- 

Virginia 132,176 22,984 1,396 107,796 6,252 

Washington 105,520 14,074 937 90,509 20 

West Virginia 74,022 4,952 593 68,477 ----- 

Wisconsin 87,128 9,089 965 77,074 104,001 

Wyoming 5,663 525 53 5,085 2,769 

Northern Mariana Islands 654 146 14 494 ----- 

Total 1

 6,556,634 1,308,062 79,291 5,169,281 309,383 1

 Includes recipients not distributed by State. 

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of

SSI Statistics and Analysis. 

SSI PROGRAM COSTS

Table 3-21 shows total expenditures for the SSI Program in each State in 

2002, including not only the federally administered Federal and State 

supplementation payments but also the State-administered State supplementation 

payments. Table 3-22 shows the total (Federal- and State-administered) State 

supplementation payments by State for SSI for selected fiscal years, 1986-2002. 

TABLE 3-21--SUPPLEMENTAL SECURITY INCOME: TOTAL 

PAYMENTS, FEDERAL SSI PAYMENTS, AND FEDERAL- AID STATEADMINISTERED STATE SUPPLEMENTATION PAYMENTS, 

CALENDAR YEAR 2002 

[In Thousands of Dollars]

State Supplementation State Total Federal SSI 1

Federally Administered 1 State-Administered 2

Alabama $730,105 $729,691 ----- $414 

Alaska 99,520 43,872 ----- 55,648 

Arizona 406,848 406,474 ----- 374 

Arkansas 354,418 354,412 $6 ----- 

California 7,230,494 4,606,666 279,828 ----- 

Colorado 331,543 243,234 ----- 88,309 

Connecticut 319,446 236,055 ----- 83,391 

Delaware 56,374 55,350 1,024 ----- 

District of Columbia 102,083 98,518 3,564 ----- 

Florida 1,824,115 1,814,392 15 9,707 

Georgia 854,414 854,411 3 ----- 

Hawaii 110,657 98,495 12,163 ----- 

Idaho 94,024 86,514 ----- 7,510 

Illinois 1,275,885 1,246,787 ----- 29,098 

Indiana 427,283 423,503 ----- 3,780 

Iowa 191,069 172,391 2,899 15,779 

Kansas 164,412 164,412 ----- ----- 
3-57 

TABLE 3-21--SUPPLEMENTAL SECURITY INCOME: 

TOTAL PAYMENTS, FEDERAL SSI PAYMENTS, AND FEDERAL- AND 

STATE-ADMINISTERED STATE SUPPLEMENTATION PAYMENTS, 

CALENDAR YEAR 2002-continued 

[In Thousands of Dollars] 

State Supplementation 

State Total Federal SSI 1

Federally Administered 1 State 

Administered 2

Kentucky 821,504 802,898 ----- 18,606 

Louisiana 761,420 760,944 ----- 476 

Maine 138,104 130,762 ----- 7,342 

Maryland 442,285 434,752 9 7,524 

Massachusetts 849,101 683,294 165,807 ----- 

Michigan 1,160,427 1,039,390 25,676 95,361 

Minnesota 389,321 303,424 10 85,888 

Mississippi 542,847 542,845 2 ----- 

Missouri 541,328 515,040 ----- 26,288 

Montana 62,959 62,136 823 ----- 

Nebraska 99,177 92,780 ----- 6,307 

Nevada 132,907 127,780 5,128 ----- 

New Hampshire 67,382 55,785 ----- 11,597 

New Jersey 721,272 640,486 80,786 ----- 

New Mexico 217,053 216,882 ----- 171 

New York 3,407,767 2,849,925 557,842 

North Carolina 937,938 797,987 ----- 139,951 

North Dakota 33,716 31,784 ----- 1,932 

Ohio 189,946 1,189,936 10 ----- 

Oklahoma 365,295 327,859 ----- 37,436 

Oregon 282,957 262,681 ----- 20,276 

Pennsylvania 1,550,661 1,406,743 143,917 ----- 

Rhode Island 146,253 121,290 24,963 ----- 

South Carolina 465,841 454,062 ----- 11,779 

South Dakota 54,753 52,246 5 2,501 

Tennessee 705,106 705,106 286 ----- 

Texas 1,799,263 1,797,304 ----- 1,959 

Utah 97,817 97,756 60 ----- 

Vermont 55,462 46,161 9,301 ----- 

Virginia 593,731 574,659 ----- 19,072 

Washington 539,989 523,340 16,421 228 

West Virginia 348,553 348,553 ----- ----- 

Wisconsin 508,120 386,334 ----- 121,786 

Wyoming 25,353 24,680 ----- 673 

N. Mariana Islands 3,358 3,358 ----- ----- 

Total $34,630,162 $29,898,765 $3,820,234 $911,163 1

 Includes data not distributed by State. 

2

 Includes amounts for six States not distributed by category. 

Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of 

SSI Statistics and Analysis. 
TABLE 3-22--STATE SSI SUPPLEMENTATION PAYMENTS, SELECTED YEARS 1986-20021

State 1986 1988 1990 1993 1996 1999 2002 

Alabama $13,659 $10,436 $6,594 $2,083 $1,027 $655 $414Alaska 12,970 12,970 12,972 12,972 12,972 16,691 55,648 

Arizona 2,668 3,309 2,560 3,129 374 250 374 

Arkansas 28 20 15 0 5 2 6 

California 1,466,079 1,862,170 2,274,296 2,212,330 1,994,313 2,266,934 2,769,828 Colorado 38,320 24,132 42,649 55,057 59,114 71,502 88,309 

Connecticut 36,578 54,584 67,670 96,836 98,235 90,738 83,391 Delaware 671 730 708 747 836 940 1,204 

District of Columbia 4,202 4,538 4,365 4,899 2,879 3,246 3,564 

Florida 9,718 11,309 14,656 18,608 18,384 24,281 9,722 

Georgia 8 18 16 19 21 10 3 Hawaii 3,740 4,263 10,885 11,066 11,479 12,824 12,163 Idaho 4,136 4,205 4,212 4,212 4,753 10,735 7,510 

Illinois 51,197 59,573 57,137 65,836 31,890 28,193 29,098 

Indiana 1,744 3,619 3,285 3,817 3,540 4,576 3,780 Iowa 1,908 2,204 2,408 2,859 3,018 19,587 18,678 

Kansas 27 25 21 0 1 2 0 

Kentucky 9,795 10,467 11,611 15,313 16,327 16,982 18,606 

Louisiana 42 33 25 4 2 516 476 

Maine 5,413 7,540 7,494 7,233 3,916 8,760 7,342 Maryland 5,252 6,159 6,155 6,269 6,430 6,680 7,533 

Massachusetts 109,452 120,010 117,113 147,866 159,629 165,189 165,807 

Michigan 66,338 69,833 74,682 62,683 27,387 43,344 121,037 Minnesota 19,818 24,667 43,924 53,860 63,720 70,295 85,898 Mississippi 29 27 22 11 8 9 2 Missouri 5,132 4,009 2,808 25,866 25,154 25,397 26,288 

Montana 834 839 864 902 905 783 823 

Nebraska 5,348 5,454 5,793 6,705 6,293 6,201 6,307 Nevada 2,531 2,704 2,928 3,586 4,083 4,830 5,128 
New Hampshire 7,326 5,865 6,843 8,512 10,489 11,218 11,597 

New Jersey 48,124 50,446 53,697 71,965 77,380 78,754 80,786 New Mexico 216 248 263 329 287 234 171 

New York 277,035 317,504 388,150 476,029 527,128 545,264 557,842 North Carolina 41,091 52,745 63,135 95,445 85,274 123,490 139,951 

North Dakota 1,518 1,480 1,390 1,220 1,917 2,205 1,932 

Ohio 35 31 34 28 1 15 10 

Oklahoma 31,380 34,045 34,168 36,557 36,988 37,354 37,436 Oregon 9,767 11,843 17,946 20,169 28,045 20,342 20,276 Pennsylvania 69,186 74,670 79,571 109,947 129,618 130,364 143,917 

Rhode Island 9,402 10,263 11,729 16,097 19,650 22,552 24,963 

South Carolina 4,812 5,004 8,897 12,377 13,258 13,383 11,779 

South Dakota 591 587 567 681 1,630 2,308 2,506 Tennessee 0 1 4 0 3 2 0 

Texas 0 0 0 0 4 3 1,959 

Utah 872 1,086 808 878 57 55 60 

Vermont 7,236 7,841 8,685 9,927 9,402 9,176 9,301 Virginia 12,164 14,432 15,296 17,317 19,632 21,919 19,072 Washington 17,443 18,058 19,915 26,808 26,795 29,079 16,649 

West Virginia 0 0 0 0 4 3 0 

Wisconsin 80,288 90,642 100,276 132,761 32,510 126,189 121,786 

Wyoming 216 226 279 527 690 686 673 Total 2,496,275 3,006,796 3,589,348 3,862,151 3,577,102 4,074,736 4,731,397 

1 In Thousands of Dollars for Fiscal Years 1986-1996, and Calendar Years 1999 and 2002.2 Less than $500.3 Amount not shown; negative adjustment exceeds amount paid.4 Texas and West Virginia did not pay State supplementation in this year.Source: Social Security Administration, Office of Research, Evaluation and Statistics, Division of SSI Statistics and Analysis.
3-60 

TABLE 3-23--FEDERAL AND STATE BENEFIT PAYMENTS UNDER 

SSI AND PRIOR ADULT ASSISTANCE PROGRAMS, SELECTED 

YEARS 1970-20051

[In millions of dollars]

State Payments 

Year 2 Total 

Total 

Constant 

2002 

Dollars 

Federal 

Payments

Total 

State 

Payments Federally 

Administered

State 

Administered

SSI 

Administrative 

Costs (FY) 

1970 $2,939 $13,627 $1,801 $1,138 ----- ----- ----- 

1972 3,392 14,599 1,993 1,398 ----- ----- ----- 

1974 5,246 19,143 3,833 1,413 $1,264 $149 $285 

1976 6,066 19,179 4,512 1,554 1,388 166 500 

1978 6,552 18,078 4,881 1,671 1,491 180 539 

1980 7,941 17,337 5,866 2,074 1,848 226 668 

1982 8,981 16,743 6,907 2,074 1,798 276 779 

1984 10,372 17,959 8,281 2,091 1,792 299 864 

1986 12,081 19,830 9,498 2,583 2,243 340 1,022 

1988 14,375 21,860 11,368 3,007 2,645 362 975 

1990 16,095 22,154 12,507 3,589 3,159 431 1,075 

1992 21,258 27,258 17,270 3,987 3,431 556 1,538 

19943

 28,288 34,339 24,461 3,827 3,219 608 1,781 

19953,4 28,124 33,199 24,443 3,681 3,060 621 1,978 

19963

 27,429 31,450 24,038 3,391 2,845 546 1,949 

19973,5 30,120 33,761 26,580 3,540 2,918 622 2,055 

19983,5 31,154 34,384 27,390 3,764 2,987 777 2,304 

19993,5 32,153 34,720 28,117 4,036 3,219 817 2,493 

20003,5 35,454 37,039 31,004 4,450 3,640 810 2,401 

20013,5 31,480 31,978 27,430 4,050 3,160 890 2,488 

20023,5 35,969 35,969 31,350 4,619 3,735 884 2,522 

20035,6 NA NA 32,805 NA 3,940 NA 3,063 

20045,6 NA NA 34,198 NA 4,045 NA 3,149 

20055,6 NA NA 38,269 NA 4,475 NA 3,263 

20066

 NA NA 37,069 NA 4,265 NA 3,272 

20076

 NA NA 35,599 NA 4,030 NA 3,343 

20086 NA NA 39,713 NA 4,450 NA 3,428 1

 Payments and adjustments during the respective year but not necessarily accrued for that year. 

2

 1970-72 refers to Old-Age Assistance, Aid to the Blind, and Aid to the Permanently and 

Totally Disabled; 1974-2005 refers to Supplemental Security Income. 

3

 Additional administrative costs are reflected for the SSI Program share of disability 

investments in fiscal years 1994-95 and automation investment in fiscal years 1994-2002. 4 Fiscal year 1995 administrative expenses included funds to pay back the Old-Age and 

Survivors Insurance Trust Fund with interest for SSI administrative funding shortfalls in prior 

years. 

5

 SSA does not collect the information necessary for making a forecast of State-administered 

benefit payments. For 2000-2005, data are projections based on the President's budget estimates 

of February 2000. 

6 All estimates for FYs 2003 and later are based on the assumptions underlying the President’s 

Fiscal Year 2004 Budget. 

NA-Not available. 

Source: Office of the Actuary, Social Security Administration and Office of Budget, Social 

Security Administration. 
3-61 

 Table 3-23 presents the total amount of Federal and State benefit payments 

from calendar years 1970-87 and fiscal years 1988-2005. From 1970-73, these were 

the benefits under the Old-Age Assistance, Aid to the Blind, and Aid to the 

Permanently and Totally Disabled Programs. In fiscal year 1999, Federal benefit 

payments totaled $28.1 billion and State payments totaled $3.2 billion, amounting 

to an overall total of $31.3 billion. In fiscal year 2000, total (Federal and State) 

SSI benefits are estimated to total $29.5 billion and are projected to increase to 

$32.7 billion in fiscal year 2002. 

 LEGISLATIVE HISTORY 

104th CONGRESS 

Public Law 104-121, the Contract with America Advancement Act of 1996, 

among other changes, prohibits disability insurance (DI) and Supplemental 

Security Income (SSI) eligibility to individuals whose drug addiction and/or 

alcoholism (DAA) is a contributing factor material to the finding of disability. This 

provision would apply to individuals who file for benefits on or after the date of 

enactment and to individuals whose claims are finally adjudicated on or after the 

date of enactment. This provision also applies to current beneficiaries on 

January 1, 1997. It stipulates that SSI must: (1) notify current DAA beneficiaries of 

the new provisions within 90 days of enactment; and (2) complete new medical 

determinations by January 1, 1997 for affected current beneficiaries who request 

such a determination within 120 days after the date of enactment. 

 Public Law 104-121 applies representative payee requirements to DI or SSI 

beneficiaries who have a DAA condition, as determined by the Commissioner, and 

who are incapable of managing benefits. The Social Security Administration (SSA) 

would refer these individuals to the appropriate State agency for treatment. The 

representative payee and referral for treatment provisions would apply to 

applications filed after the third month following the month of enactment. In 

addition, the new law retains the $50 fee that representatives can collect for 

beneficiaries who have a DAA condition. The legislation also authorizes an 

appropriation of $50 million for each of fiscal years 1997 and 1998 to carry out 

activities relating to the treatment of drug and alcohol abuse under the Public 

Health Service Act. 

 Further, Public Law 104-121 authorizes additional funds to SSA for fiscal 

years 1996-2002 for the purpose of conducting Social Security disability insurance 

continuing disability reviews (CDRs) and Supplemental Security Income CDRs and 

disability eligibility redeterminations. This new funding level is achieved by 

increasing the amount of funds available for appropriations under the discretionary 

spending cap. The Commissioner of Social Security must ensure that the funds 

made available pursuant to this provision are used, to the greatest extent 

practicable, to maximize the combined savings to the Old-Age, Survivors, and 

Disability Insurance (OASDI), SSI, Medicare, and Medicaid Programs. Moreover, 

the Commissioner is required to report annually, for fiscal years 1996-2002, to 
3-62 

Congress on the amount of money spent on CDRs, the number of reviews 

conducted (by category), the disposition of such reviews (by program), and the 

estimated savings over the short-, medium-, and long-term for OASDI, SSI, 

Medicare, and Medicaid Programs from CDRs which result in cessations, and the 

estimated present value of such savings. 

Public Law 104-193, the Personal Responsibility and Work Opportunity 

Reconciliation Act (PRWORA) of 1996, signed on August 22, 1996, makes several 

major changes in SSI law. These include: 

 Limited Eligibility of Noncitizens for SSI Benefits CPRWORA prohibits 

SSI eligibility for all noncitizens except: refugees, asylees, and noncitizens whose 

deportation has been withheld (limited to their first 5 years of residence); certain 

active duty Armed Forces personnel, honorably discharged veterans, and their 

spouses and dependent children; and lawful permanent residents who have worked 

for 10 years or more. For purposes of the exception based on work, children are 

credited with all quarters worked by their parents, and married individuals 

(including widows) are credited with work performed by spouses during their 

marriage. However, after December 31, 1996, quarters of work during which an 

individual received Federal public assistance are not countable toward this 

exception. 

 Deeming of Sponsors' Incomes and Resources CFor purposes of eligibility 

for sponsored noncitizens admitted under new, legally enforceable affidavits of 

support, PRWORA deems all of the sponsors' (and sponsors' spouses') incomes and 

resources to the noncitizen until citizenship. However, deeming is not required for 

lawful permanent residents who have worked for 10 or more years (not counting 

quarters of work after 1996 during which the individual received Federal public 

assistance), or for children and spouses of workers credited with work performed 

by them. 

 Requirements for Affidavits of Support for Sponsorship CAffidavits of 

support are made legally enforceable against the sponsor until the noncitizen 

becomes a U.S. citizen. The agency that provides assistance to a noncitizen must 

request reimbursement from the sponsor for assistance provided. 

 Reporting of Illegal Immigrants to the Immigration and Naturalization 

Service CThe Commissioner of Social Security must furnish to the Immigration 

and Naturalization Service the name, address, and other identifying information of 

any individual that SSA knows is unlawfully present in the United States. 

 SSI Eligibility Based on Childhood Disability CThe comparable severity 

standard is eliminated and replaced by the standard that a child is considered 

disabled if she has a medically determinable impairment which results in "marked 

and severe" functional limitations and which can be expected to result in death or 

which has lasted or can be expected to last for a continuous period of not less than 

12 months. The Social Security Administration is directed to eliminate references to 

maladaptive behavior in the domain of personal/behavioral function in the listing of 

impairments for children and to discontinue the use of individualized functional 

assessments in evaluating a child's disability. SSA is also required to redetermine, 

using the new criteria and by no later than August 22, 1997, the eligibility of 
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recipients who may be affected by the new criteria. Benefits for those recipients 

who do not meet the new criteria would end on or after the later of July 1, 1997, or 

the date of the redetermination. 

 CDRs must be conducted once every 3 years for child recipients with 

nonpermanent impairments, and not later than 12 months after birth for low birth 

weight babies. Representative payees must present evidence to SSA that the 

recipient is receiving treatment that is medically necessary and available, unless 

SSA determines that such treatment would be inappropriate or unnecessary. An 

eligibility redetermination, using the adult initial eligibility criteria, must be 

performed within 1 year after child recipients turn 18. 

 FundingCPRWORA authorizes the appropriation of an additional 

$150 million in fiscal year 1997 and $100 million in fiscal year 1998 for the costs 

of performing CDRs and redeterminations. 

 Prisoner ReportingCThe law provides for incentive payments 

($400 for information received within 30 days of confinement or $200 for 

information received from 31 to 90 days after confinement) to State and local penal 

institutions that furnish identifying information to SSA which results in suspension 

of SSI benefits to prisoners. 

 Modifying the Effective Date of Applications CAn individual's application 

for SSI benefits would be effective on the first day of the month following the date 

on which the application is filed, or on which the individual first becomes eligible, 

whichever is later. (This change effectively eliminates prorated payments for the 

month of application, while continuing emergency advance payments and 

subsequent repayments over several months in certain cases.) 

 Reduction in Cash Benefits Payable to Institutionalized Individuals whose 

Medical Costs are Covered by Private Insurance CPRWORA limits to not more 

than $30 a month, cash benefits payable to children who are in an institution 

receiving medical care covered by private insurance. 

 Installment Payments of Large Past-Due SSI Payments CA schedule for 

paying large retroactive SSI benefit amounts at 6-month intervals is established. 

 Dedicated Savings Accounts CPRWORA requires the establishment of a 

bank account to maintain large retroactive SSI benefits, to be used for education or 

job skill training, special equipment, medical rehabilitation, or other appropriate 

items or services related to the impairment of the child. 

Public Law 104-208, the Department of Defense Appropriations Act for 

fiscal year 1997, includes the Illegal Immigration Reform and Immigrant 

Responsibility Act of 1996, which amends Public Law 104-193 with regard to 

noncitizens' eligibility for SSI benefits. Noncitizen individuals and their children 

who are battered or abused are added to the list of “qualified aliens.” Sponsorship 

affidavits of support are made legally binding and sponsor-to-immigrant deeming 

of income and resources in the SSI Program continues until noncitizens become 

U.S. citizens or they, their spouses, or parents work 40 quarters in the United 

States. The law also provides additional exceptions to sponsor-to-immigrant 

deeming for indigent noncitizens whose sponsors do not provide them with income 

sufficient to obtain food and shelter and for battered individuals and their children. 
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In addition, Public Law 104-208 requires several reports to Congress. The 

Commissioner of Social Security is required to report the aggregate number of 

Social Security numbers issued to noncitizens not authorized to work but under 

which earnings were reported and the extent to which Social Security numbers and 

Social Security cards are used by noncitizens for fraudulent purposes. These two 

reports are due no later than 3 months after the end of each fiscal year, and within 

1 year after the date of enactment, respectively. The General Accounting Office 

also is required to report to Congress and the Department of Justice within 180 days 

after the date of enactment on the extent to which means-tested benefits are being 

paid to noncitizens acting as representative payees who are not “qualified aliens.” 

105th CONGRESS 

Public Law 105-18, an emergency supplemental appropriations bill, provides 

a 1-month extension for noncitizens who were receiving benefits on the date of 

enactment of Public Law 104-193 (August 22, 1996) and who would not continue 

to be eligible under the noncitizen restrictions in that law by changing the date by 

which SSI redeterminations of eligibility had to be completed from August 22, 

1997 to September 30, 1997. 

Public Law 105-33, the Balanced Budget Act of 1997, made several major 

changes in SSI. These include: 

SSI Eligibility for Aliens Receiving SSI on August 22, 1996 and Certain 

Disabled Legal Aliens CPublic Law 105-33 provides that, despite restrictions in the 

1996 welfare reform law, noncitizens lawfully residing in the United States who 

were receiving SSI on August 22, 1996, remain eligible for SSI. In addition, 

noncitizens lawfully residing in the United States on August 22, 1996, are eligible 

for SSI if they become disabled in the future. The law also provides that members 

of Native American Indian tribes who are noncitizens are not affected by the 

SSI restrictions in Public Law 104-193. In addition, individuals who received SSI 

prior to January 1, 1979, continue to be eligible for benefits if the Commissioner of 

Social Security lacks clear and convincing evidence that such individuals are 

noncitizens ineligible for benefits. 

Extension of Eligibility Period for Refugees and Certain Other Qualified 

Aliens from 5 to 7 Years for SSI and Medicaid; Status of Cuban/Haitian Entrants 

and Certain Amerasians CPublic Law 105-33 extends from 5 years to 7 years the 

initial eligibility period for SSI and Medicaid for refugees, asylees, and noncitizens 

who have had their deportations withheld. In addition, Cuban and Haitian entrants 

and Amerasian immigrants are added to the categories of noncitizens who are 

considered "qualified aliens." These groups are eligible for SSI for their initial 

7 years, and are exempt from the 5-year eligibility ban on noncitizens entering the 

United States after August 22, 1996. 

Exceptions for Certain Indians from Noncitizen Limitations on Eligibility 

for Supplemental Security Income and Medicaid BenefitsCPublic Law 105-33 

exempts noncitizen members of federally recognized Indian tribes or noncitizen 

Native Americans from the SSI and Medicaid restrictions in the 1996 act. 
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Exemption from Noncitizen Restrictions on SSI Program Participation by 

Certain Recipients Eligible on the Basis of Very Old ApplicationsCPublic Law 

105-33 exempts certain individuals who have been on SSI rolls since before 

January 1, 1979, from the noncitizen restrictions in the 1996 act. 

Derivative Eligibility for Noncitizens for Medicaid and Food Stamp 

Benefits-Public Law 105-33 provides that noncitizens who are otherwise ineligible 

for Medicaid under the 1996 act may be eligible for Medicaid if they receive 

SSI benefits and if the State's Medicaid plan provides Medicaid eligibility for 

SSI recipients. The legislation also clarifies that noncitizens who are otherwise 

ineligible under the 1996 act for food stamps would not be made eligible for food 

stamps because they receive SSI benefits. 

 Fees for Federal Administration of State Supplementary PaymentsCPublic 

Law 105-33 increases fees for SSA's administering State supplementary payments, 

with added collections available for SSA administrative purposes. 

 Timing of Delivery of October 1, 2000, SSI Benefit PaymentsCIn order to 

meet budget targets, Public Law 105-33 provides that the October 2000 SSI check 

be paid on October 2, which is a Monday, rather than on the last Friday in 

September. 

 Medicaid Coverage for Certain Workers and Children, Public Law 105-33 

gives the States the option of permitting individuals who had been receiving 

SSI disability benefits, but are working, to buy into Medicaid if their family income 

is less than 250 percent of poverty. In addition, States are required to continue 

Medicaid coverage for children who were receiving SSI disability benefits as of 

August 22, 1996, but whose eligibility would end because they do not meet the 

new, more strict SSI childhood disability eligibility criteria. 

 Technical Amendments to the 1996 Welfare Reform Law CThe legislation 

makes a number of technical clarifications with regard to the disabled children's 

redetermination and continuing disability review requirements. Technical changes 

also clarify the meaning of the term "final adjudication" with regard to 

SSI disability cases based on drug addiction or alcoholism and expands the 

applicability of provisions in Public Law 104-121 that require treatment referrals 

and authorization of fees for organizations serving as representative payees for 

SSI beneficiaries who have a DAA condition. 

Technical corrections also are made that clarify when the reporting 

incentives involving prisoners apply and that allow SSA to charge a fee as a 

condition of processing requests for information by law enforcement authorities 

regarding SSI recipients who are fugitive felons and probation or parole violators. 

Clarifications are made concerning SSI dedicated savings account funds and 

terminology relating to medical treatment facilities and the applicability of the 

$30 SSI payment limit are updated. Noncitizens technical correction provisions 

include adding battered parents to the definition of “qualified alien” and the 

exemptions from sponsor-to-immigrant deeming, clarifying that veterans 

widow(er)s may be eligible for benefits, and authorizing SSA to disclose 

noncitizens' quarters of coverage information to other governmental agencies for 

the purpose of carrying out the noncitizen restriction provisions. 
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 Public Law 105-306, the Noncitizen Benefit Clarification and Other 

Technical Amendments Act of 1998 provided continuing eligibility for SSI for 

nonqualified aliens who were receiving benefits on August 22, 1996. 

106th CONGRESS 

 Public Law 106-169, the Foster Care Independence Act of 1999, contains 

numerous provisions related to SSI fraud reduction and overpayment recovery. 

These provisions are summarized below. 

 Overpayments and Debt Collection CThe law amends the Social Security 

Act to make representative payees liable for the repayment of Social Security 

benefit checks distributed after the recipient's death. SSA will monitor these 

repayments using representative payees' Social Security numbers. Beginning on 

December 14, 2000, SSA is authorized to recover up to 50 percent of lump sum 

SSI benefit payments made to individuals (or eligible spouses) who are themselves 

liable for the repayment of SSI benefits. The law also authorizes SSA to intercept 

Federal and State payments owed to individuals, use debt collection agencies, and 

other techniques to collect overpayments. 

 Treatment of Assets CPublic Law 106-169 changes the way assets held in 

trusts are treated when determining SSI Program eligibility and benefit amounts. 

(A trust is defined by SSA as a legal arrangement involving property and 

ownership interests.) Assets and income in irrevocable trusts may not be revoked or 

used by an individual for personal support and maintenance. These trusts, 

previously exempt from SSI resource limit calculations, will be counted toward the 

resource limit for program eligibility and used to determine benefit amounts. All 

trusts established after January 1, 2000Cregardless of the purpose of the trust, 

degree of trustee discretion, or restrictions on distributionCwill be affected by the 

law. However, the new law allows the Commissioner of Social Security to waive 

the consideration of a trust if doing so would create an undue hardship for an 

individual. The criteria for undue hardship will be determined by the 

Commissioner. 

 Disposal of Resources CThe law also imposes new rules regarding resources 

disposed of at less than fair market value. Individuals or their spouses who dispose 

of resources at less than fair market value will be ineligible for SSI benefits from 

the "look-back" date (the date the individual applied for benefits or, if later, the 

date the individual disposed of resources for less than fair market value) for a 

length of time calculated by SSA. The ineligibility period is determined by 

dividing the total value of the disposed resources by the maximum monthly benefit 

and the maximum applicable State supplementary payment. This ineligibility 

period may not exceed 36 months. Similar restrictions on the treatment of assets 

and the disposal of resources were already in effect for the Medicaid Program 

before enactment of Public Law 106-169. 

 Certain resources are exempt from this provision: resources transferred to a 

trust, if the trust is considered a resource available to the individual; the transfer of 

a home to family members under certain conditions; the transfer of resources to a 
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spouse for the spouse's sole benefit; or the transfer of resources to an individual's 

blind or disabled child (under age 65). Furthermore, a resource may be exempt if an 

individual proves to the Commissioner that he intended to dispose of the resource 

at fair market value; or that the resource was transferred for reasons other than to 

qualify for the SSI Program; or if the Commissioner determines that denial of 

eligibility would cause an undue hardship. 

 Penalties for False or Misleading StatementsCThe law contains provisions 

authorizing SSA to establish a new administrative process to determine whether 

individuals have fraudulently claimed benefits in cases considered too small to 

prosecute in court. The law provides for increasing penalties of 

6, 12, and 24 months of ineligibility depending on the nature of the case. However, 

the imposition of these penalties will not impact an individual's receipt of other 

assistance. The penalty procedure applies only to false and misleading statements 

made after the date of the law's enactment, December 14, 1999. The Commissioner 

is mandated to develop regulations detailing the administrative process for 

imposing the penalties within 6 months of enactment. 

Health care providers and attorneys convicted of fraud or administratively 

fined for fraud involving SSI eligibility determinations are barred from 

participating in the SSI Program for at least 5 years. SSA will provide individuals 

with reasonable notice and opportunity for a hearing and judicial review. SSA will 

also notify the State agencies that employ such individuals and the State licensing 

agencies that license or certify them. Attorneys and health care providers are 

required to inform SSA of any past violations or convictions. The Commissioner or 

Inspector General of Social Security may waive the exclusion from involvement 

with the SSI Program for an individual who is the only provider of services to a 

community and may terminate exclusions on a case-by-case basis. 

 Information Sharing Requirements CThere are a number of provisions 

regarding information sharing between Federal and State agencies in the new law. 

SSA is authorized to obtain financial records for SSI recipients to ensure that they 

meet SSI's resource restrictions and remain eligible for benefits. 

States are required to provide the Commissioner with information for 

determining individuals' eligibility for Social Security and SSI benefit programs. 

State prisons are also required to provide inmate information to Federal and 

federally assisted benefit programs. To help reduce fraudulent benefit payments to 

prisoners of food stamps, veterans’ benefits, unemployment benefits, and 

educational aid, SSA is required to share its prisoner database with other Federal 

agencies and departments. 

The law directs SSA to conduct computer matches with Medicare and 

Medicaid data maintained by the Department of Health and Human Services on 

individuals who are residents of public institutions. Data obtained from these 

matches may be used as a substitute for a physician's certification that an 

individual's stay in an institution will be less than 3 months. The Commissioner 

and the Secretary of the Department of Health and Human Services will mutually 

determine the terms of the data matching. 

 Study and Reporting Requirements CThe law requires the Commissioner, 
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in consultation with the SSA Inspector General and the Attorney General, to study 

and report to Congress on legislative and administrative reforms that would reduce 

or prevent SSI and Social Security DI fraud and overpayments. Furthermore, the 

Commissioner must include an itemized account of the amount of funds required to 

support efforts to combat fraud by applicants and beneficiaries in the SSA annual 

budget. This requirement is effective for annual budgets prepared after fiscal year 

1999. 

Public Law 106-170, the Ticket to Work and Work Incentives Improvement 

Act of 1999, expands Medicaid coverage and provides work incentives for disabled 

beneficiaries of SSI. The law also creates a "ticket to work" system whose purpose 

is to expand the numbers and types of providers that SSI beneficiaries may choose 

to assist them in receiving employment and vocational rehabilitation services. In 

addition, the law has several other provisions: 

 Greater Accessibility to Vocational Rehabilitation Providers CIndividuals 

on the SSI rolls are given access to a broader pool of vocational rehabilitation 

providers. SSI recipients are provided with “tickets” that they can use as vouchers 

to obtain employment services, case management, vocational rehabilitation, and 

support services from the providers of their choice, including State vocational 

rehabilitation agencies. This program will be implemented on a gradual basis 

within 1 year of enactment at test sites and within 4 years in every State. 

The law also authorizes the Commissioner to make grants of up to $7 million 

each year for fiscal years 2000-2004 to protection and advocacy organizations 

providing information and advice about obtaining vocational rehabilitation and 

employment services. The Secretary of Health and Human Services is authorized to 

award grants to States to design, establish, and operate infrastructures providing 

items and services to support working individuals with disabilities, and to conduct 

outreach campaigns to publicize the new benefits under the legislation ($20 million, 

$25 million, $30 million, $35 million, and $40 million for fiscal years 2001-2005, 

respectively; for fiscal years 2006-2011, the law authorizes the prior year's amount 

adjusted for inflation.) 

 Creation of Employment NetworkCEmployment networks are required to 

consist of a single public or private provider or an association of providers 

combined into a single entity which assumes responsibility for the coordination 

and delivery of services. Employment networks, which must be experienced in 

providing relevant employment and support services to individuals with disabilities 

will work with beneficiaries to develop employment plans and employment goals. 

The employment networks are responsible for providing periodic performance 

reports to beneficiaries holding tickets and periodic quality assurance reviews. The 

Commissioner will establish mechanisms for resolving disputes between 

employment networks and beneficiaries. State vocational rehabilitation agencies 

and employment networks must enter into agreements with individuals referred by 

an employment network to a State vocational rehabilitation agency for services. 

Payment to employment networks is based on one of two payment systems. 

Under the outcome payment system, employment networks are provided with up 

 to 40 percent of the average monthly disability benefit for each month (up to 
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60 months) benefits are not payable to the beneficiary due to work. Under the 

outcome-milestone payment system, employment networks receive early 

payments based on the achievement of one or more milestones toward permanent 

employment. The total amount payable under this system may not exceed the total 

amount payable under the outcome payment system. Regardless of the system 

used, beneficiaries forgo their SSI benefit and instead receive earnings from work. 

The cost effectiveness of the payment systems will be evaluated by the 

Commissioner. 

 Limitations on Continuing Disability Reviews (CDRs) for Ticket to Work 

Participants — The law prohibits the Commissioner from initiating a CDR for a 

beneficiary participating in the Ticket to Work and Self-Sufficiency Program. 

Further, if beneficiaries do not succeed at their work effort, the law provides for 

the reinstatement of SSI benefits without requiring re-application. 

 Medicaid Expansion — Under Public Law 106-170, States can opt to cover 

persons with disabilities at higher income and resource levels than otherwise 

permitted (i.e., over 250 percent of the Federal poverty level and over $2,000, 

respectively), and whose medical condition would not otherwise permit them to be 

covered. States can require these individuals to "buy into" Medicaid coverage by 

paying premiums or other cost-sharing charges on a sliding fee scale based on 

income, as established by the State. 

 Demonstration Projects and Studies — The law extends Social Security 

demonstration projects relating to disabled beneficiaries and establishes a new 

demonstration project to test phasing out disability benefits for earnings above a 

certain level of income. Further, the General Accounting Office is required to study 

the effects of the substantial gainful activity level on recipients who return to work, 

and report on whether disregarding certain income for calculating benefits is 

appropriate. 

 Other — The law permits the Commissioner to withhold an assessment 

charge of 6.3 percent of the attorney's fees for the purpose of recovering costs to 

SSA of withholding and payment of attorneys fees. SSA is authorized to penalize 

States that are late in paying administrative fees to SSA. 

 

107th CONGRESS

 Public Law 107-73, the Economic Growth and Tax Reconciliation Act of 

2001, was signed into law on June 7, 2001. The law increases child tax credit 

amounts gradually from $500 for each child to $1,000 in 2010 and expands the 

child tax credit by making it refundable for low-income workers. Previously, the