The Supplemental Security Income (SSI) program is different than Social Security retirement and Social Security disability benefits. SSI is funded differently from these programs and the rules are different for these other programs to qualify. Many people understand the income and asset limitations in order to be eligible for SSI benefits, but some do not realize that SSI has evolved since its inception back in 1974 when it was just a safety net for seniors. Below we take a closer look at how the SSI program began and what its original intention was and how SSI is funded, from information provided by the Center on Budget and Policy Priorities.
How Has SSI Changed Over Time?
Since SSI began in 1974, the share of the elderly receiving benefits has fallen steadily, mostly because fewer seniors qualify under SSI’s increasingly stringent income limits. The share of children and adults with disabilities receiving SSI grew, partly due to policy changes in 1984 that expanded eligibility based on mental impairments and a 1990 Supreme Court ruling that expanded the SSI disability criteria for children. Following those changes, the 1996 welfare law restricted eligibility for children and immigrants. The share of Americans receiving SSI has remained steady at around 2.5 percent over the past decade and is projected to fall slightly over the long term. The share of people from each age group receiving SSI is expected to stay steady or (in the case of the elderly) to continue declining.
How Is SSI Funded?
Unlike Social Security, which is financed by dedicated payroll taxes, SSI is funded from general revenues. SSI expenditures, at $56 billion in fiscal year 2019, were 0.27 percent of gross domestic product (GDP) that year. More than $9 of every $10 pays for benefits; the rest covers administrative costs.
