It has been 50 years since the Supplemental Security Income (SSI) program was first introduced to provide financial assistance to people with disabilities and older adults. Initially, the program started by issuing monthly benefit payments of around $140 per individual or $210 per couple. Fast forward to 2024, and the maximum monthly benefit has increased to $943 for individuals and $1,415 for eligible couples. Despite these increases, the average monthly benefit falls well below the federal poverty level, which stands at $1,255 per month for an individual in 2024.
The SSI program, which serves over 7 million beneficiaries, imposes strict restrictions that can be burdensome for both recipients and the Social Security Administration. Beneficiaries face limitations on income from work and other sources, as well as strict asset limits of $2,000 for individuals and $3,000 for couples. These restrictions have led to administrative overhead and workload challenges for the Social Security Administration, accounting for a significant portion of the agency’s resources.
Recognizing the need for reform, the Social Security Administration has taken steps to ease some of the restrictions associated with SSI benefits. For instance, the agency will no longer count food as unearned income, which penalizes beneficiaries who receive in-kind support and maintenance from family members. Additionally, the rental subsidy policy for SSI applicants and beneficiaries is being expanded, along with the definition of a public assistance household.
In Congress, there are bipartisan proposals aimed at reforming the SSI program. The Supplemental Security Income Restoration Act seeks to increase asset limits, set the minimum benefit at 100% of the federal poverty level, streamline claiming processes, and eliminate certain benefit reductions. Another proposal, the SSI Savings Penalty Elimination Act, aims to raise asset limits to $10,000 per individual and $20,000 per couple, while eliminating the marriage penalty for beneficiaries.
The Potential Impact of Reforms
Advocates argue that loosening the current rules of the SSI program could have a positive effect on beneficiaries. Current restrictions limit the ability of SSI recipients to work, save, or access certain opportunities, such as contributing to a 401(k) or taking paid internships. By reforming the program, more elderly and disabled individuals could be lifted out of poverty, creating avenues for financial security and independence.
Call for Action
Experts emphasize the urgent need for reforming the SSI program to better serve its intended purpose as a lifeline for vulnerable populations. By increasing benefit amounts, raising asset thresholds, and streamlining processes, Congress can make significant strides in alleviating poverty and promoting financial stability among SSI beneficiaries. The time to act is now to ensure that the SSI program can effectively support those who rely on it for vital financial assistance.