[Background Material and Data on Programs within the Jurisdiction of the Committee on Ways and Means (Green Book)]
[Program Descriptions]
[Section 3. Supplemental Security Income]
[From the U.S. Government Printing Office, www.gpo.gov]


 
[1998 Green Book] SECTION 3. SUPPLEMENTAL SECURITY INCOME (SSI)

                                CONTENTS

Background
Trends
Basic Eligibility
  Categorical Requirements
  Citizenship and Residency Requirements
  Prohibition of Payment to Fugitives
  Income and Resource Requirements
  Presumptive SSI 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
Vocational Rehabilitation 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 for SSI
Eligibility of the Homeless
Special SSI Provisions for the Working Disabled
  Earned Income Disregards
  Eliminating Work Disincentives
  Overview of Section 1619 Provisions
Measures of SSI Participation
  SSI Participation Rates
  Changes in Number of Recipients, 1970-96
  SSI Program Costs
Legislative History
  Legislative Changes Made in the 103d Congress
  Legislative Changes Made in the 104th Congress
  Legislative Changes Made in the 105th 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) and begun 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 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--particularly earned income--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 from their dependent situations (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, corporation 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 areas 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 the Federal 
Government (i.e., the Social Security Administration).

                                 TRENDS

    Table 3-1 summarizes the trends in the SSI Program since 
its inception in 1974:
 1. The number of recipients on SSI has risen from nearly 4 
        million in 1974 to 6.6 million in December 1996. 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-1980s 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 $28.3 billion in 1996.
 3. The monthly Federal benefit rates for individuals and 
        couples rose from $140 and $210 in 1974 to $484 and 
        $726 in 1997 (1997 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 Index (CPI).

                                                            TABLE 3-1.--SUPPLEMENTAL SECURITY INCOME SUMMARY, SELECTED YEARS 1974-96                                                            
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                            Year                                                                
                           Item                            -------------------------------------------------------------------------------------------------------------------------------------
                                                               1974       1978       1980       1984        1986        1988       1990       1992       1993       1994       1995       1996  
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Recipients: \1\                                                                                                                                                                                 
    Aged..................................................  2,285,909  1,967,900  1,807,776   1,530,289   1,473,428  1,433,420  1,454,041  1,471,022  1,474,852  1,465,905  1,446,122  1,412,632
    Blind.................................................     74,616     77,135     78,401      80,524      83,115     82,864     83,686     85,400     85,456     84,911     83,545     82,137
    Disabled..............................................  1,635,539  2,171,890  2,255,840   2,418,522   2,712,641  2,947,585  3,279,400  4,009,767  4,424,022  4,744,470  4,984,467  5,118,949
                                                           -------------------------------------------------------------------------------------------------------------------------------------
      Total...............................................  3,996,064  4,216,925  4,142,017   4,029,333   4,269,184  4,463,869  4,817,127  5,566,189  5,984,300  6,295,786  6,514,134  6,613,718
                                                           =====================================================================================================================================
Number with section 1619(a)...............................         NA         NA         NA  406 (8/84)  992 (1/86)     19,920  \2\ 13,99                                                       
                                                                                                                                        4     17,603     18,597     24,315     28,060     31,085
Number with section 1619(b)...............................         NA         NA         NA       6,804       8,106     15,625     23,517     31,649     34,293     40,683     47,002     51,905
Annual payments (in millions):                                                                                                                                                                  
    Federal benefits......................................     $3,833     $4,881     $5,866      $8,281      $9,498    $10,734    $12,894    $18,247    $20,722    $22,175    $23,919    $25,265
    Federal admin. State supp.............................      1,264      1,491      1,848       1,792       2,243      2,671      3,239      3,435      3,270      3,116      3,118      2,988
    State admin. State supp...............................        149        180        226         299         340        381        466    \3\ 556        564        579    \4\ 620      4,546
                                                           -------------------------------------------------------------------------------------------------------------------------------------
      Total...............................................     $5,246     $6,552     $7,940     $10,372     $12,081    $13,786    $16,599    $22,238    $23,991    $25,870    $27,037    $28,252
                                                           =====================================================================================================================================
Annual payments (in millions of 1996 dollars).............    $16,696    $15,767    $15,119     $15,663     $17,295    $18,284    $19,926    $24,869    $26,050    $27,389    $27,835    $28,252
Monthly Federal benefits rates:                                                                                                                                                                 
    Individuals...........................................    $140.00    $177.80    $208.20     $314.00     $336.00    $354.00    $386.00    $422.00    $434.00    $446.00    $458.00    $470.00
    Couples...............................................     210.00     266.70     312.30      472.00      504.00     532.00     579.00     633.00     652.00     687.00     687.00     705.00
Average Federal SSI payments: \1\                                                                                                                                                               
    All recipients........................................     $95.11    $111.98    $143.35     $196.16     $215.40    $227.49    $261.47    $329.74    $317.41    $325.26    $334.12    $339.24
    Aged individuals......................................      78.48      91.22     112.45      143.24      151.38     159.36     175.29     195.86     204.45     211.55     219.13     227.42
    Aged couples..........................................      93.02     120.48     157.56      221.98      246.07     273.18     322.82     448.61     478.42     505.64     534.00     563.39
Average federally administered: \1\                                                                                                                                                             
    State supplementation.................................     $70.92     $75.00     $99.15      $97.61     $115.41    $122.68    $139.79    $118.08    $108.50    $101.46    $105.24    $104.58
Percent of recipients with other income: \1\                                                                                                                                                    
    Social Security benefits..............................       52.7       51.7       51.0        49.6        48.9       47.8       45.9       41.3       40.1       39.1       37.9       37.0
    Other unearned income.................................       10.5       11.5       11.0        11.2        12.1       12.4       13.0       14.5       13.4       13.1       12.8       12.4
    Earnings..............................................        2.8        3.1        3.2         3.5         3.9        4.4        4.7        4.4        4.3        4.2        4.3        4.4
Average amount of: \1\                                                                                                                                                                          
    Social Security benefits..............................    $130.01    $156.50    $196.94     $250.61     $263.29    $286.49    $318.57    $335.72    $338.85    $345.20    $354.47    $382.56
    Other unearned income.................................      61.10      66.93      74.35       84.56       86.40      85.92      98.13      91.96     100.44     101.13     105.32     112.46
    Earnings..............................................      80.00      99.32     106.95      126.47      142.17     173.09     195.64     207.55     210.22     225.01     234.94     258.42
Poverty thresholds (age 65 and over):                                                                                                                                                           
    Individual............................................     $2,364     $3,127     $3,949      $4,979      $5,255     $5,674     $6,268     $6,729     $6,930     $7,108     $7,309     $7,525
    Couple................................................      2,982      3,944      4,983       6,282       6,630      7,158      7,905      8,489      8,741      8,967      9,221      9,491
Federal benefit rate as a percent of poverty:                                                                                                                                                   
    Individual............................................       74.1       72.7       72.3        75.6        76.7       74.9       73.9       75.3       75.2       75.3       75.2       75.0
    Couple................................................       88.1       86.4       86.0        90.2        91.2       89.2       87.9       89.5       89.5       89.5       89.4      89.1 
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\1\ December data.                                                                                                                                                                              
\2\ The decrease in 1619(a) participants in 1990 was caused by the increase in the substantial gainful activity level to $500 monthly.                                                          
\3\ Fiscal year 1992 data.                                                                                                                                                                      
\4\ Fiscal year 1996 data.                                                                                                                                                                      
                                                                                                                                                                                                
 NA--Not available.                                                                                                                                                                             
                                                                                                                                                                                                
 Source: Social Security Administration (1995 and various years) and unpublished data.                                                                                                          

 4. The proportion of SSI recipients receiving Social Security 
        benefits declined from nearly 53 percent in 1974 to 37 
        percent in 1996. The fraction of SSI recipients 
        receiving some other type of unearned income rose 
        slightly from about 11 percent in 1974 to 12 percent in 
        1996, and the fraction with earnings increased from 
        about 3 percent in 1974 to more than 4 percent in 
        December 1996.
 5. The Federal benefit rate as a percent of the appropriate 
        poverty level for individuals has ranged from 72 to 77 
        percent and is currently 75 percent; for couples it has 
        ranged from 86 to 91 percent and is currently at 89 
        percent. 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'' is to earn 
$500 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 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.''
     Under previous 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 (Public Law 104-193) 
discontinues the individualized functional assessment 
disability determination procedure and the ``comparable 
severity'' standard upon which it was based. Many children on 
the rolls as a result of an individualized functional 
assessment will have their benefits terminated, and future 
awards based on individualized functional assessments will be 
barred. Thus, the SSI Program for Children will be restricted 
to those who have impairments that meet or equal at least one 
of the listings. Pursuant to Public Law 104-193, 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. (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 Fugitives

    The Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996 (Public Law 104-193) provides that, 
as of August 22, 1996, SSI benefits may not be paid to 
individuals who are fleeing to avoid prosecution for a crime 
which is a felony, or fleeing to avoid custody or confinement 
after conviction for a crime which is a felony, 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 $484 for an individual and $726 for a couple 
(calendar year 1997 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 is 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 dollar-for-dollar reduction is made against the 
maximum payment. Not all income is counted for SSI purposes. 
Major exclusions include the first $20 of monthly income from 
virtually any source (such as Social Security benefits, but not 
needs-tested income such as veterans' pensions) 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, 1997                   
----------------------------------------------------------------------------------------------------------------
                                                                   Receiving only Social    Receiving only wage 
                                                                         Security                 income        
                                                                 -----------------------------------------------
                                                                    Monthly    Annually     Monthly    Annually 
----------------------------------------------------------------------------------------------------------------
Individual......................................................        $504      $6,048      $1,053     $12,636
Couple..........................................................         746       8,952       1,537     18,444 
----------------------------------------------------------------------------------------------------------------
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 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 her, the SSI benefit standard for such an 
individual is reduced by one-third. By regulation, SSA has also 
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 are also 
excluded from income. Assistance provided to an aged, blind, or 
disabled individual for the purpose of meeting home energy 
costs either in cash or in kind and which is furnished by a 
home heating oil or gas supplier or by a utility company is 
also excluded. Assistance for home energy costs provided in 
kind by a private nonprofit organization is also excluded.
    As countable income increases, a recipient's SSI benefit 
amount decreases. Ineligibility for SSI occurs when countable 
income equals the Federal benefit standard plus the amount of 
State supplementation, if any.
Resources
    SSI eligibility is 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 has been 
separated or living independently for over 6 months, each 
person is treated as an individual. 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 value 
of property which is used in a person's trade, or business, or 
by the person as an employee is also 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 (plan for achieving self-support) are also excluded.
    The cash surrender value of life insurance policies if the 
total face value of all policies is $1,500 or less are 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 are not subject to 
penalty. However, 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, 
the matches totaled 508,000. SSA has evaluated and adjusted the 
tolerance levels several times over the years. Effective 
October 1993, the tolerance level for income from resources--
e.g., interest and dividends--is $60. The tolerance level for 
other nonwage income not from resources--e.g., unemployment 
compensation and pensions--is $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 years 1994 and 1995 
there were 297,000 and 181,000 matches, respectively.
    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 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 is also 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 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 personal 
needs allowance 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 
and/or State supplementary benefit.
    For example, in 1997 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 ($485).................      -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...........................       726.00
Less countable income......................................      -447.50
                                                            ------------
      Benefit payable to eligible individual...............       278.50
                                                                        

    Thus, the benefit for the eligible individual will be $278 
(SSI law requires that benefits be rounded down to the next 
lower dollar). Without deeming and as an individual, the 
recipient would have received $304 [$484 - ($200 less $20 
exclusion)]. The $20 exclusion can only be used once and is 
first applied 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 1996, there were about 128,000 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 SSI Eligibility for Persons with AIDS and HIV

    SSI law permits benefits to be paid to a person applying 
for SSI benefits on the basis of disability or blindness before 
a formal determination of disability or blindness has been made 
when available information indicates a high probability that 
the person will be eligible.
    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 SSI based on 
disability or blindness prior to the determination of the 
individual's disability or blindness 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.
    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.
    The Social Security Administration 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 are 
therefore 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 Requirement

    In general, 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: Overview of Section 1619 
        Provisions'') 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 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 was enforced through an exchange of 
computerized data between the Social Security Administration 
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 covered about 73 
percent of inmates--all 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 must provide to the Commissioner on a monthly basis 
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. The Commissioner must pay the institution 
up to $400 for each resident if the information is provided to 
the Commissioner within 30 days after such individual becomes a 
resident or up to $200 for each inmate if the information is 
provided after 30 days but within 90 days of the person 
becoming a resident. According to the Congressional Budget 
Office, this requirement is expected to save $100 million over 
the 6-year period (1997-2002).

               APPLICATION TO OTHER PROGRAMS REQUIREMENT

    Since SSI payments are reduced by other income, applicants 
and recipients must apply for any other money benefits due 
them. SSA works with recipients and helps them get any other 
benefits for which they are eligible.

                    Eligibility for Social Security

    As noted, SSI law requires that applicants file for all 
other benefits for which they may be entitled. 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 1996, 37 percent of 
all SSI recipients also received Social Security benefits (62 
percent of the aged, 30 percent of the disabled, and 35 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, 1996, 32 
States and the District of Columbia chose this option, and SSI 
recipients in these States account for approximately 78 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. The seven States of Alaska, 
Idaho, Kansas, Nebraska, Nevada, Oregon, and Utah and the 
Commonwealth of the Northern Mariana Islands, affecting about 
2.6 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/or require a 
Medicaid application with the State. However, aged, blind, and 
disabled SSI recipients who are Medicaid applicants must be 
allowed to spend down in 209(b) States, 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 19.3 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
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: Overview of Section 1619 Provisions'').
    The same legislation required States to provide for 
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.

                   VOCATIONAL REHABILITATION 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.

                              SSI BENEFITS

                      Federal SSI Benefit Standard

    The Federal SSI benefit standard for an individual for 1997 
is $484 a month and $726 for a couple. As is discussed later, 
most States supplement the Federal SSI benefit. The result is a 
combined Federal SSI/State supplemental benefit 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 need--especially 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 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 fiscal year 1996, about 781,000 people 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 1996 for those determined to be living 
in the household of another is $322.67 for an individual and 
$484 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.

                                 TABLE 3-3.--FEDERAL SSI BENEFIT LEVELS, 1974-97                                
                                                  [In dollars]                                                  
----------------------------------------------------------------------------------------------------------------
                                                                   Eligibility status                           
                                       -------------------------------------------------------------------------
                                                             Own household              Household of another    
                 Year                     Medicaid  ------------------------------------------------------------
                                        institution                      Essential                     Essential
                                                      Single    Couple     person    Single   Couple     person 
----------------------------------------------------------------------------------------------------------------
Initial...............................      $25.00    $130.00   $195.00    $65.00    $86.67   $130.00    $43.34 
Jan. 1974.............................       25.00     140.00    210.00     70.00     93.34    140.00     46.67 
July 1974.............................       25.00     146.00    219.00     73.00     97.34    146.00     48.67 
July 1975.............................       25.00     157.70    236.60     78.90    105.14    157.74     52.60 
July 1976.............................       25.00     167.80    251.80     84.00    111.87    167.87     56.00 
July 1977.............................       25.00     177.80    266.70     89.00    118.54    177.80     59.34 
July 1978.............................       25.00     189.40    284.10     94.80    126.27    189.40     63.20 
July 1979.............................       25.00     208.20    312.30    104.20    138.80    208.20     69.47 
July 1980.............................       25.00     238.00    357.00    119.20    158.67    238.00     79.47 
July 1981.............................       25.00     264.70    397.00    132.60    176.47    264.67     88.40 
July 1982.............................       25.00     284.30    426.40    142.50    189.54    284.27     95.00 
July 1983.............................       25.00     304.30    456.40    152.50    202.87    304.27    101.67 
Jan. 1984 \1\.........................       25.00     314.00    472.00    157.00    209.34    314.67    104.67 
Jan. 1985.............................       25.00     325.00    488.00    163.00    216.67    325.34    108.67 
Jan. 1986.............................       25.00     336.00    504.00    168.00    224.00    336.00    112.00 
Jan. 1987.............................       25.00     340.00    510.00    170.00    226.67    340.00    113.34 
Jan. 1988.............................       25.00     354.00    532.00    177.00    236.00    354.67    118.00 
Jan. 1989.............................       30.00     368.00    553.00    184.00    245.34    368.67    122.67 
Jan. 1990.............................       30.00     386.00    579.00    193.00    257.34    386.00    128.67 
Jan. 1991.............................       30.00     407.00    610.00    204.00    271.34    406.67    136.00 
Jan. 1992.............................       30.00     422.00    633.00    211.00    281.34    422.00    140.67 
Jan. 1993.............................       30.00     434.00    652.00    217.00    289.34    434.67    144.67 
Jan. 1994.............................       30.00     446.00    669.00    223.00    297.34    446.00    148.67 
Jan. 1995.............................       30.00     458.00    687.00    229.00    305.34    458.00    152.66 
Jan. 1996.............................       30.00     470.00    705.00    235.00    313.34    470.00    152.57 
Jan. 1997.............................       30.00     484.00    726.00    242.00    322.67    484.00   161.33  
----------------------------------------------------------------------------------------------------------------
\1\ Cost-of-living adjustments to Federal SSI benefit levels are rounded to the next lower whole dollar         
  beginning with the increase effective January 1984.                                                           
                                                                                                                
 Source: Office of Research, Evaluation and Statistics, Social Security Administration.                         

    In December 1996 4.2 percent, or about 277,800 SSI 
recipients, had their benefits determined on the basis of this 
``one-third reduction'' benefit standard. Sixty-three 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 
personal needs allowance, just like those with Medicaid 
coverage. The Federal PNA benefit of $25 was increased to $30 a 
month on July 1, 1988--the first increase since the SSI Program 
began in 1974. The annual cost-of-living increase for SSI does 
not apply to the personal needs allowance. 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 will not be reduced and recipients will continue to 
receive full SSI benefits for up to the first 3 months of 
institutionalization.

   TABLE 3-4.--NUMBER AND PERCENTAGE DISTRIBUTION OF PERSONS RECEIVING  
  FEDERALLY ADMINISTERED PAYMENTS, BY LIVING ARRANGEMENT AND CATEGORY,  
                              DECEMBER 1996                             
------------------------------------------------------------------------
                                               Reason for eligibility   
    Living arrangement \1\        Total   ------------------------------
                                              Aged     Blind    Disabled
------------------------------------------------------------------------
Own household.................       93.5       91.0     92.4       94.2
Another's household...........        4.2        6.7      4.8        3.5
Institutional care covered by                                           
 Medicaid.....................        2.3        2.2      2.8        2.3
                               -----------------------------------------
    Total percent.............      100.0      100.0    100.0      100.0
                               =========================================
    Total number..............  6,613,718  1,412,632   82,137  5,118,949
                                                                        
------------------------------------------------------------------------
\1\ As used for determination of Federal SSI payment standard.          
                                                                        
 Source: Office of Research, Evaluation and Statistics, Social Security 
  Administration.                                                       

    Approximately 152,120 or 2.3 percent of SSI recipients 
received benefits in December 1996 on the basis of this 
personal needs allowance. 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 them (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.
    Sixteen 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 
1996, California, the District of Columbia, Maine, 
Massachusetts, Michigan, New Jersey, New York, Rhode Island, 
and Vermont had opted for Federal administration. Approximately 
28 States allow some or all of those individuals affected by 
the Medicaid personal needs allowance regulations to retain 
more than $30 a month.

           Benefits of Former Recipients of State Assistance

    Another benefit affecting some persons involves Federal 
payments to 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 $242 monthly in 1997 to take into account an 
``essential person'' living in the household.
    Essential persons are persons (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.

                              Overpayments

    A provision in the 1984 Deficit Reduction Act established 
limits on recovery by the Social Security Administration 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 1996, Social Security offices made 6,871 emergency advance 
payments using their third-party drafts in these new claims 
situations totaling $3,074,542 with an average payment amount 
of $447.
    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 $400 or the amount due, whichever is less, 
once in a 30-day period. The payment must be approved by office 
management. During fiscal year 1996, 48,235 Social Security and 
51,516 SSI immediate payments were issued under this procedure. 
The total amount of these payments equalled $35,233,014 for an 
average of $353 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 a result of the 
transfer to the SSI Program. 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 his or her other 
income. Thus, States must provide a supplementary payment to 
any individual who, because of special needs or other reasons, 
had a December 1973 payment higher than 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 December 1996, approximately 2,800 recipients or 
less than 0.1 percent of all recipients were receiving payments 
based in part on or solely because of 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 eight 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, Texas, and West Virginia. States (or local 
jurisdictions) may elect to administer their supplementary 
payments themselves or may contract with SSA for Federal 
administration. Fifteen States and the District of Columbia 
have contracted with SSA to administer the State optional 
supplementation program. Since the SSI Program began in 1974, 
seven 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 encourage 
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. As a result, SSI 
recipients in those States received no increase in the combined 
Federal/State benefit amount when the Federal payment rose. 
Congress responded by enacting the pass-along/maintenance-of-
effort provision for State supplementary payments (that is, 
section 1618).
    Section 1618 allows States to comply with the pass along/
maintenance-of-effort 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 $484 a month in 1997, and often more than the 
combined Federal and SSI State supplementation for those 
classified as living 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 a variety of other terms. The amount of supplementation by 
the State also varies a great deal. For example, in the State 
of Maryland under a State-administered supplementation program, 
a ``specialized and intensive supervision'' group living 
facility has a State supplementation of $666 a month in 
addition to the Federal benefit level of $484. Thus the maximum 
total Federal and State SSI payment in a month in Maryland is 
$1,150. In one State, 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 is also 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) 
increases the amount of the fee charged by the SSA to 
administer a State's supplementary SSI payments. The current 
fee is $5 per check. It will be increased to $6.20 in fiscal 
year 1998, $7.60 in fiscal year 1999, $7.80 in fiscal year 
2000, $8.10 in fiscal year 2001, and $8.50 in fiscal year 2002. 
Each succeeding year, fees would be 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 would be credited to a 
special Treasury fund available for Social Security 
Administration administrative purposes. Such amounts would be 
credited as a discretionary offset to discretionary spending to 
the extent that they are made available for expenditures in 
appropriation acts.

State SSI supplement levels over time

     Throughout the entire period from July 1975 to January 
1997, 23 States have continuously provided supplemental SSI 
payments to aged individuals living independently.
    During the period from July 1975 to January 1997, no State 
increased supplements faster than inflation for aged 
individuals living independently or aged couples living 
independently (see tables 3-5 and 3-6).

              TABLE 3-5.--STATE SSI SUPPLEMENTS FOR AGED INDIVIDUALS WITHOUT COUNTABLE INCOME LIVING INDEPENDENTLY, SELECTED YEARS 1975-97              
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                               Percent  
                                                                                                                                               change   
                         State                           July   July   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.    (constant 
                                                         1975   1980   1985   1988   1990   1991   1992   1993   1994   1995   1996   1997    dollars)  
                                                                                                                                             1975-97 \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alaska \2\............................................   $142   $235   $261   $305   $331   $349   $362   $374   $362   $362   $362   $362           -13
California............................................    101    182    179    221    244    223    223    186    157    157    156    156           -47
Colorado..............................................     27     55     58     58     54     45     56     56     56     56     56     62           -22
Connecticut \3\.......................................     NA    102    141    403    366    359    325    313    301     NA  \3\ N                     
                                                                                                                                  A    243            NA
District of Columbia..................................      0     15     15     15     15     15     15     15     15      5      5      0            NA
Hawaii................................................     17     15      5      5      5      5      5      5      5      5      5      5           -90
Idaho.................................................     63     74     78     73     73     70     70     65     45     37     37     48           -74
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           -66
Massachusetts.........................................    111    137    129    129    129    129    129    129    129    129    126    126           -61
Michigan..............................................     12     24     27     30     30     31     14     14     14     14     14     14           -60
Minnesota \4\.........................................     31     34     35     35     75     81     81     81     81     81     81     81           -11
Nebraska..............................................     67     75     69     43     38     24     30     28     21     19     12      8           -96
Nevada................................................     55     47     36     36     36     36     36     36     36     36     36     36           -78
New Hampshire.........................................     12     46     27     27     27     27     27     27     27     27     27     27           -23
New Jersey............................................     24     23     31     31     31     31     31     31     31     31     31     31           -56
New York..............................................     61     63     61     72     86     86     86     86     86     86     86     86           -52
Oklahoma..............................................     27     79     60     64     64     64     64     60     57     55     54     53           -33
Oregon................................................     17     12      2      2      2      2      2      2      2      2      2      2           -96
Pennsylvania..........................................     20     32     32     32     32     32     32     32     32     32     27     27           -54
Rhode Island..........................................     31     42     54     58     64     64     67     64     64     64     64     64           -30
South Dakota..........................................      0     15     15     15     15     15     15     15     15     15     15     15            NA
Utah..................................................      0     10     10      9      6      6      5      5      1      0      0      0            NA
Vermont...............................................     29     41     53     59     63     65     65     57     55     59     47     55           -35
Washington \5\........................................     36     43     38     28     28     28     28     28     28     28     25     28           -74
Wisconsin.............................................     70    100    100    103    103    103     93     93     85     84     84     84           -59
Wyoming...............................................      0     20     20     20     20     20     20     10     10     10     10     10            NA
                                                       -------------------------------------------------------------------------------------------------
  Median..............................................     31     43     36     36     37     36     32     31     31     32     31     36          -60 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The percentage change in constant dollars was computed by inflating July 1975 to January 1996 by the CPI-U price index. The July 1975 index value is
  54.2 and the January 1997 value is 159.1.                                                                                                             
\2\ 1975 and 1980--less if shelter costs less than $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 the      
  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 Counties.     
                                                                                                                                                        
 NA--Not available.                                                                                                                                     
                                                                                                                                                        
 Source: Office of Supplemental Security Income, Social Security Administration, and Committee on Ways and Means staff calculations.                    


                TABLE 3-6.--STATE SSI SUPPLEMENTS FOR AGED COUPLES WITHOUT COUNTABLE INCOME LIVING INDEPENDENTLY, SELECTED YEARS 1975-97                
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                               Percent  
                                                                                                                                               change   
                         State                           July   July   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.   Jan.    (constant 
                                                         1975   1980   1985   1988   1990   1991   1992   1993   1994   1995   1996   1997    dollars)  
                                                                                                                                             1975-97 \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama...............................................     $9      0      0      0      0      0      0      0      0      0      0      0          -100
Alaska \2\............................................    183   $338   $371   $444   $484   $510   $528   $544   $528   $528   $528   $528            -2
California............................................    251    389    448    534    588    557    557    488    440    415    396    396           -46
Colorado..............................................    133    229    278    292    309    293    323    328    323    323    323    346           -11
Connecticut \3\.......................................     NA     NA     86    602    525    522    461    442    425     NA  \3\ N                     
                                                                                                                                  A    368            NA
District of Columbia..................................      0     30     30     30     30     30     30     30     30     15     15      0            NA
Hawaii................................................     28     24      9      9      9      9      9      9      9      9      9      9           -89
Idaho.................................................     49     80     46     44     45     44     45     40     21      9      9     16           -89
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           -66
Massachusetts.........................................    173    214    202    202    202    202    202    202    202    202    197    197           -61
Michigan..............................................     18     36     40     45     45     46     21     21     21     28     28     28           -47
Minnesota \4\.........................................     38     44     66     66     88    132    129    126    126    126    111    111            -1
Nebraska..............................................     67    114    100     66     65     34     48     39     40     22     14      3           -99
Nevada................................................    106     90     74     74     74     74     74     74     74     74     74     74           -76
New Hampshire.........................................      0     42     21     21     21     21     21     21     21     21     22     21            NA
New Jersey............................................     13     12     25     25     25     25     25     25     25     25     25     25           -35
New York..............................................     76     79     76     93    102    103    103    102    102    102    103    103           -54
Oklahoma..............................................     54    158    120    128    128    128    128    120    114    110    108    106           -33
Oregon................................................     17     10      0      0      0      0      0      0      0      0      0      0          -100
Pennsylvania..........................................     30     49     49     49     49     49     49     49     49     49     44     44           -50
Rhode Island..........................................     59     79    102    111    120    121    127    120    120    120    121    121           -30
South Dakota..........................................      0     15     15     15     15     15     15     15     15     15     15     15            NA
Utah..................................................      0     20     20     18     12     12     11     10      5      5      5      5            NA
Vermont...............................................     61     76     96    106    115    118    118    110    103    110     92    103           -43
Washington \5\........................................     40     44     37     22     22     22     22     22     22     22     20     22           -81
Wisconsin.............................................    105    161    161    166    166    166    146    146    134    132    132    132           -57
Wyoming...............................................      0     40     40     40     40     40     40     19     19     25     25     25            NA
                                                       -------------------------------------------------------------------------------------------------
  Median..............................................     57     63     66     66     65     49     49     30     39     28     28     44          -74 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ The percentage change in constant dollars was computed by inflating July 1975 to January 1996 by the CPI-U price index. The July 1975 index value is
  54.2 and the January 1997 value is 159.1.                                                                                                             
\2\ 1975 and 1980--less if shelter costs less than $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.                
\5\ State has two geographic payment levels--highest levels are shown in table. Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties.     
                                                                                                                                                        
 NA--Not available.                                                                                                                                     
                                                                                                                                                        
 Source: Office of Supplemental Security Income, Social Security Administration.                                                                        

    Approximately 37 percent of SSI recipients receive 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 $2 a month to $362 a month for an 
individual. At present, 25 States 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. These tables assume that the elderly individual or 
couple receive an excess shelter deduction of $250 (the maximum 
for nonelderly) and an excess medical cost deduction of $4 in 
the Food Stamp Program. Approximately 66 percent of SSI 
households in the Food Stamp Program claim a shelter deduction; 
it is estimated that approximately 17 percent of them are 
allowed a deduction that exceeds the excess shelter expense 
ceiling for nonelderly or nondisabled households ($250 per 
month). About 4 percent of SSI households claim a medical cost 
deduction.

  TABLE 3-7.--MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED INDIVIDUALS LIVING INDEPENDENTLY, JANUARY  
                                                    1997 \1\                                                    
----------------------------------------------------------------------------------------------------------------
                                                                                               Combined benefits
                              State                                 Maximum SSI   Food stamp -------------------
                                                                      benefit    benefit \2\  Monthly    Annual 
----------------------------------------------------------------------------------------------------------------
Alabama..........................................................          $484        $91       $575     $6,900
Alaska...........................................................           846         99        945     11,340
Arizona..........................................................           484         91        575      6,900
Arkansas.........................................................           484         91        575      6,900
California.......................................................           640      \3\ 0        640      7,680
Colorado.........................................................           546         72        618      7,416
Connecticut......................................................           747         12     \4\ NA         NA
Delaware.........................................................           484         91        575      6,900
District of Columbia.............................................           484         91        575      6,900
Florida..........................................................           484         91        575      6,900
Georgia..........................................................           484         91        575      6,900
Hawaii...........................................................           489        198        687      8,244
Idaho............................................................       \5\ 532         82        614      7,368
Illinois.........................................................        \6\ NA         NA         NA         NA
Indiana..........................................................           484         91        575      6,900
Iowa.............................................................           484         91        575      6,900
Kansas...........................................................           484         91        575      6,900
Kentucky.........................................................           484         91        575      6,900
Louisiana........................................................           484         91        575      6,900
Maine............................................................           494         88        582      6,984
Maryland.........................................................           484         91        575      6,900
Massachusetts....................................................           610         53        663      7,956
Michigan.........................................................           498         87        585      7,020
Minnesota........................................................       \7\ 565         66        631      7,572
Mississippi......................................................           484         91        575      6,900
Missouri.........................................................           484         91        575      6,900
Montana..........................................................           484         91        575      6,900
Nebraska.........................................................           492         88        580      6,960
Nevada...........................................................           520         80        600      7,200
New Hampshire....................................................           511         83        594      7,128
New Jersey.......................................................           515         81        596      7,152
New Mexico.......................................................           484         91        575      6,900
New York.........................................................           570         65        635      7,620
North Carolina...................................................           484         91        575      6,900
North Dakota.....................................................           484         91        575      6,900
Ohio.............................................................           484         91        575      6,900
Oklahoma.........................................................           537         75        612      7,344
Oregon...........................................................           486         90        576      6,912
Pennsylvania.....................................................           511         83        594      7,128
Rhode Island.....................................................           548         72        620      7,440
South Carolina...................................................           484         91        575      6,900
South Dakota.....................................................           499         86        585      7,020
Tennessee........................................................           484         91        575      6,900
Texas............................................................           484         91        575      6,900
Utah.............................................................           484         91        575      6,900
Vermont..........................................................       \8\ 539         74        613      7,356
Virginia.........................................................           484         91        575      6,900
Washington.......................................................       \9\ 512         82        594      7,128
West Virginia....................................................           484         91        575      6,900
Wisconsin........................................................           568         66        634      7,608
Wyoming..........................................................           494         88        582     6,984 
----------------------------------------------------------------------------------------------------------------
\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 1996 through September 1997 are $120 in 
  the 48 contiguous States and the District of Columbia, $153 in Alaska, and $198 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 shelter deduction of $250 per month (the maximum      
  allowable for nonelderly, nondisabled households); and (3) an excess medical expense deduction of $4 monthly  
  (estimated from 1995 medical expense information). If smaller excess shelter costs were assumed, food stamp   
  benefits would be smaller. 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\ SSI recipients in California are ineligible for food stamps. California provides increased cash aid in lieu 
  of stamps.                                                                                                    
\4\ Individual budget process.                                                                                  
\5\ State disregards $20 of SSI payment in determining the State supplementary payment.                         
\6\ State decides benefits on case-by-case basis.                                                               
\7\ Payment level for Hennepin County. State has two geographic payment levels--one for Hennepin County and the 
  other for the remainder of the State.                                                                         
\8\ State has two geographic payment levels--highest are shown in table.                                        
\9\ Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties.                                         
                                                                                                                
 NA--Not available.                                                                                             
                                                                                                                
 Source: Table prepared by the Congressional Research Service (CRS) based on data from the Social Security      
  Administration.                                                                                               


  TABLE 3-8.--MAXIMUM POTENTIAL SSI AND FOOD STAMP BENEFITS FOR AGED COUPLES LIVING INDEPENDENTLY, JANUARY 1997 
                                                       \1\                                                      
----------------------------------------------------------------------------------------------------------------
                                                                                               Combined benefits
                              State                                 Maximum SSI   Food stamp -------------------
                                                                      benefit    benefit \2\  Monthly    Annual 
----------------------------------------------------------------------------------------------------------------
Alabama..........................................................          $726       $118       $844    $10,128
Alaska...........................................................         1,254        103      1,357     16,284
Arizona..........................................................           726        118        844     10,128
Arkansas.........................................................           726        118        844     10,128
California.......................................................         1,122      \3\ 0      1,122     13,464
Colorado.........................................................         1,072         14      1,086     13,032
Connecticut......................................................     \4\ 1,094          8         NA         NA
Delaware.........................................................           726        118        844     10,128
District of Columbia.............................................           726        118        844     10,128
Florida..........................................................           726        118        844     10,128
Georgia..........................................................           726        118        844     10,128
Hawaii...........................................................           735        308      1,043     12,516
Idaho............................................................       \5\ 742        119        861     10,332
Illinois.........................................................       \6\ 726        118        844     10,128
Indiana..........................................................           726        118        844     10,128
Iowa.............................................................           726        118        844     10,128
Kansas...........................................................           726        118        844     10,128
Kentucky.........................................................           726        118        844     10,128
Louisiana........................................................           726        118        844     10,128
Maine............................................................           741        114        855     10,260
Maryland.........................................................           726        118        844     10,128
Massachusetts....................................................           923         59        982     11,784
Michigan.........................................................           754        110        864     10,368
Minnesota........................................................       \7\ 837         85        922     11,064
Mississippi......................................................           726        118        844     10,128
Missouri.........................................................           726        118        844     10,128
Montana..........................................................           726        118        844     10,128
Nebraska.........................................................           729        117        846     10,152
Nevada...........................................................           800         96        896     10,752
New Hampshire....................................................           747        112        859     10,308
New Jersey.......................................................           751        111        862     10,344
New Mexico.......................................................           726        118        844     10,128
New York.........................................................           829         87        916     10,992
North Carolina...................................................           726        118        844     10,128
North Dakota.....................................................           726        118        844     10,128
Ohio.............................................................           726        118        844     10,128
Oklahoma.........................................................           832         86        918     11,016
Oregon...........................................................           726        118        844     10,128
Pennsylvania.....................................................           770        105        875     10,500
Rhode Island.....................................................           847         82        929     11,148
South Carolina...................................................           726        118        844     10,128
South Dakota.....................................................           741        114        855     10,260
Tennessee........................................................           726        118        844     10,128
Texas............................................................           726        118        844     10,128
Utah.............................................................           731        117        848     10,176
Vermont..........................................................       \8\ 829         87        916     10,992
Virginia.........................................................           726        118        844     10,128
Washington.......................................................       \9\ 748        112        860     10,320
Wisconsin........................................................           726        118        844     10,128
Wyoming..........................................................           858         79        937     11,244
West Virginia....................................................           751        111        862    10,344 
----------------------------------------------------------------------------------------------------------------
\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 two-person households, maximum food stamp benefits from October 1996 through September 1997 are $220 in 
  the 48 contiguous States and the District of Columbia, $280 in Alaska, and $364 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 shelter deduction of $250 per month (the maximum      
  allowable for nonelderly, nondisabled households); and (3) an excess medical expense deduction of $4 monthly  
  (estimated from 1995 medical expense information). If smaller excess shelter costs were assumed, food stamp   
  benefits would be smaller. 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\ SSI recipients in California are ineligible for food stamps. California provides increased cash aid in lieu 
  of stamps.                                                                                                    
\4\ Individual budget process.                                                                                  
\5\ State disregards $20 monthly of SSI income in determining the State supplementary payment amounts.          
\6\ State decides benefits on case-by-case basis.                                                               
\7\ Payment level for Hennepin County. State has two geographic payment levels--one for Hennepin County and one 
  for the remainder of the State.                                                                               
\8\ State has two geographic payment levels--highest levels are shown in table.                                 
\9\ Sum paid in King, Pierce, Kitsap, Snohomish, and Thurston Counties.                                         
                                                                                                                
 NA--Not available.                                                                                             
                                                                                                                
 Source: Table prepared by the Congressional Research Service (CRS) based on data from the Social Security      
  Administration.                                                                                               

         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, the 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 75 percent in 1984 
and 1985 compared to 71 percent in the 1975 to 1982 period. In 
1997, benefit levels were 77.2 percent of the poverty level.
    Table 3-10 presents the same information for a couple. The 
SSI benefit for a couple is 91.8 percent of the poverty 
threshold in 1997.

   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 1975-97                                                   
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Calendar year                                          
            Poverty threshold and benefits            --------------------------------------------------------------------------------------------------
                                                         1975     1980     1984     1986     1988     1990     1992     1993     1994     1996     1997 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Poverty threshold....................................   $2,572   $3,941   $4,980   $5,255   $5,672   $6,268   $6,729   $6,930   $7,107   $7,309   $7,525
Federal SSI benefits:                                                                                                                                   
    Dollars per year.................................   $1,822   $2,677   $3,768   $4,032   $4,248   $4,632   $5,064   $5,208   $5,352   $5,640   $5,808
    Percent of poverty...............................     70.8     72.3     75.6     76.7     74.9     73.9     75.3     75.2     75.3     77.2     77.2
Federal SSI and Social Security:                                                                                                                        
    Dollars per year.................................   $2,062   $2,917   $4,008   $4,272   $4,488   $4,872   $5,304   $5,448   $5,592   $5,880   $6,048
    Percent of poverty...............................     80.2     74.0     80.5     81.3     79.1     77.7     78.8     78.6     78.7     80.4     80.4
Federal SSI, Social Security, and food stamps: \1\                                                                                                      
    Dollars per year.................................   $2,350   $3,345   $4,294   $4,488   $4,848   $5,318   $5,820   $5,952   $6,072   $6,372   $6,600
    Percent of poverty...............................     91.4     84.9     86.2     85.4     85.5     84.8     86.5     85.9     85.4     87.2    87.7 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ In computing the food stamp benefit for 1975, average deductions among all elderly households are assumed. For later years (except 1996 and 1997),  
  the applicable standard deduction plus average shelter and medical deductions among all elderly households is assumed. For 1996 and 1997, 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 1975-97                                                   
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 Calendar year                                          
            Poverty threshold and benefits            --------------------------------------------------------------------------------------------------
                                                         1975     1980     1984     1986     1988     1990     1992     1993     1994     1996     1997 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Poverty threshold....................................   $3,232   $4,954   $6,280   $6,628   $7,156   $7,906   $8,489   $8,741   $8,964   $9,221   $9,491
Federal SSI benefits:                                                                                                                                   
    Dollars per year.................................   $2,734   $4,016   $5,664   $6,048   $6,384   $6,948   $7,596   $7,824   $8,028   $8,460   $8,712
    Percent of poverty...............................     84.6     81.1     90.2     91.2     89.2     87.9     89.5     89.5     89.6     91.7     91.8
Federal SSI and Social Security:                                                                                                                        
    Dollars per year.................................   $2,974   $4,256   $5,904   $6,288   $6,624   $7,188   $7,836   $8,064   $8,268   $8,700   $8,952
    Percent of poverty...............................     92.0     86.0     94.0     94.9     92.6     90.9     92.3     92.3     92.2     94.3     94.3
Federal SSI, Social Security, and food stamps: \1\                                                                                                      
    Dollars per year.................................   $3,430   $4,906   $6,393   $6,696   $7,200   $7,935   $8,700   $8,880   $9,084   $9,540   $9,828
    Percent of poverty...............................    106.1     99.0    101.8    101.0    100.6    100.4    102.5    101.6    101.3    103.5   103.6 
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ In computing the food stamp benefit for 1975, average deductions among all elderly households are assumed. For later years (except 1996 and 1997),  
  the applicable standard deduction plus average shelter and medical deductions among all elderly households is assumed. For 1996 and 1997, the         
  applicable standard deduction plus average shelter and medical deductions among all SSI households is assumed.                                        
                                                                                                                                                        
 Source: Congressional Research Service.                                                                                                                

                       TRENDS IN THE SSI CASELOAD

                          Number of Recipients

    As shown in table 3-11, in December 1996, 6.6 million 
persons received federally administered SSI payments. Of these, 
1.4 million received federally administered payments on the 
basis of being aged, 5.1 million on the basis of being 
disabled, and 82,137 on the basis of blindness. However, 
677,519 of those receiving benefits on the basis of disability 
or blindness were over the age of 65. Table 3-11 also indicates 
that approximately 4.2 million of those receiving federally 
administered SSI payments received only Federal SSI payments, 
2.1 million received a combination of Federal and State 
payments, and 288,187 received State supplements only.
    Table 3-12 shows the trends in the numbers of persons 
receiving federally administered SSI payments from December 
1975 through September 1996, 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 12 
years the number of SSI recipients has increased from about 3.9 
million to more than 6.6 million, an increase of 70 percent.

         Characteristics of Adult Disabled and Blind Recipients

    Major disabling diagnosis.--As shown in table 3-13, of the 
SSI disabled ages 18-64, 28.4 percent were eligible on the 
basis of mental retardation and 30 percent on the basis of 
other mental disorders. Therefore, over one-half of all SSI 
disabled recipients are eligible on the basis of a mental 
disability. The next three largest categories are: diseases of 
the nervous system and sense organs--10.1 percent; diseases of 
musculoskeletal and connective tissues--7.3 percent; and 
diseases of the circulatory system--4.9 percent. In December 
1995, 1.3 million or 23.8 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.--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, 16.1 percent of the SSI adult population receiving 
benefits on the basis of disability are age 65 or over (27.2 
percent of the blind were age 65 or over).
    Sex.--In January 1997, 54.8 percent of those receiving SSI 
benefits on the basis of disability and 55.6 percent on the 
basis of blindness were women (table 3-15).
    Race.--In January 1997, 52.4 percent of those receiving SSI 
on the basis of disability were white; 30.9 percent were black; 
12.7 percent were other races; and in 4 percent of the cases, 
race was not reported (table 3-15).

   TABLE 3-11.--NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED PAYMENTS, TOTAL AMOUNT AND AVERAGE MONTHLY   
                            AMOUNT, BY SOURCE OF PAYMENT AND CATEGORY, DECEMBER 1996                            
----------------------------------------------------------------------------------------------------------------
                        Source of payment                             Total       Aged      Blind      Disabled 
----------------------------------------------------------------------------------------------------------------
                                                                                 Number of persons              
                                                                                                                
                                                                  ----------------------------------------------
Federally administered payments \1\..............................   6,613,718  1,412,632  \2\ 82,13             
                                                                                                  7  \3\ 5,118,9
                                                                                                              49
    Federal payment only.........................................   4,192,248    774,459     45,378    3,372,411
    Both Federal and State supplementation.......................   2,133,283    522,003     30,802    1,580,478
    State supplementation only...................................     288,187    116,170      5,957      166,060
                                                                  ----------------------------------------------
      Total Federal payment \4\..................................   6,325,531  1,296,462     76,180    4,952,889
      Total State supplementation \5\............................   2,421,470    638,173     36,759    1,746,538
                                                                                                                
                                                                  ----------------------------------------------
                                                                         Amount of payments [in thousands]      
                                                                                                                
                                                                  ----------------------------------------------
Federal payments.................................................  $2,145,851   $296,665    $25,477   $1,823,709
State supplementation............................................     253,242     71,678      5,653      175,911
                                                                  ----------------------------------------------
      Total......................................................   2,399,093    368,343     31,130    1,999,620
                                                                                                                
                                                                  ----------------------------------------------
                                                                               Average monthly amount           
                                                                                                                
                                                                  ----------------------------------------------
Federal payments.................................................      339.24     228.83     334.44       368.21
State supplementation............................................      104.58     112.32     153.78       100.72
                                                                  ----------------------------------------------
      Total......................................................      362.75     260.75     379.00      390.63 
----------------------------------------------------------------------------------------------------------------
\1\ All persons with Federal SSI payments and/or federally administered State supplementation.                  
\2\ Includes an estimated 20,747 persons age 65 or older.                                                       
\3\ Includes an estimated 646,149 persons age 65 or older.                                                      
\4\ All persons with a Federal SSI payment whether receiving a Federal payment only or both a Federal and State 
  supplementation.                                                                                              
\5\ All persons with federally administered State supplementation whether receiving State supplementation only  
  or both a Federal SSI payment and a State supplementation.                                                    
                                                                                                                
 Source: Office of Research, Evaluation and Statistics, Social Security Administration.                         

    Other income.--In December 1996, 30.2 percent of the 
disabled and 35.4 percent of the blind received Social Security 
benefits. Table 3-16 shows the number of SSI recipients with 
other sources of income, both unearned and earned.

  Characteristics of Recipients Receiving Benefits on the Basis of Age

    Age.--In December 1996, of SSI recipients receiving 
benefits on the basis of age (65 or older), 33.9 percent were 
80 years of age or older (table 3-14).

                TABLE 3-12.--NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED SSI PAYMENTS BY CATEGORY AND AGE, SELECTED YEARS 1975-96                
                                                                     [In thousands]                                                                     
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Year                                             
                                                         -----------------------------------------------------------------------------------------------
             Reason for eligibility and age                Dec.    Sept.   Sept.   Sept.   Sept.   Sept.   Sept.   Sept.   Sept.   Sept.   Sept.   Sept.
                                                           1975    1983    1986    1988    1989    1990    1991    1992    1993    1994    1995    1996 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Reason for eligibility:                                                                                                                                 
  Aged..................................................   2,307   1,528   1,476   1,434   1,439   1,452   1,463   1,478   1,474   1,470   1,455   1,429
  Blind.................................................      74      79      83      83      83      84      85      86      86      85      85      83
    Under 18............................................       3       6       7       7       7       7       7       8       8       8       8       8
    18-21...............................................       4       5       5       4       4       4       4       4       4       4       4       4
    22-64...............................................      46      45      48      49      49      50      51      52      52      52      52      51
    65 or older.........................................      22      23      23      22      22      22      22      22      22      21      21      20
  Disabled..............................................   1,933   2,292   2,673   2,917   3,048   3,229   3,502   3,921   4,348   4,692   4,956   5,124
    Under 18............................................     104     191     231     247     256     287     366     511     683     812     898     950
    18-21...............................................      90     122     138     136     139     143     150     167     186     202     219     232
    22-64...............................................   1,559   1,517   1,787   1,987   2,091   2,218   2,393   2,637   2,864   3,049   3,193   3,285
    65 or older.........................................     179     462     517     548     563     579     592     606     615     629     646     656
Age:                                                                                                                                                    
  Under 18..............................................     107     197     238     254     263     294     373     518     691     820     906     958
  18-21.................................................      93     127     143     140     143     147     154     171     190     206     223     236
  22-64.................................................   1,605   1,562   1,835   2,036   2,140   2,269   2,445   2,690   2,917   3,101   3,245   3,337
  65 or older...........................................   2,508   2,013   2,016   2,003   2,023   2,051   2,078   2,107   2,110   2,120   2,121   2,105
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................   4,314   3,898   4,232   4,434   4,570   4,764   5,050   5,486   5,908   6,247   6,495  6,636 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Office of Research, Evaluation and Statistics, Social Security Administration.                                                                  


  TABLE 3-13.--DISABILITY DIAGNOSIS OF SSI AND SECTION 1619 DISABILITY  
                      RECIPIENTS, DECEMBER 1996 \1\                     
              [Percentage distribution by diagnostic group]             
------------------------------------------------------------------------
                                    Supplemental Security Income (SSI)  
                                ----------------------------------------
        Diagnostic group           All SSI     SSI section   SSI section
                                 disabled 18-    1619(a)       1619(b)  
                                   64 yrs.    participants  participants
------------------------------------------------------------------------
Infectious and parasitic                                                
 diseases......................          1.7           1.1           1.5
Neoplasms......................          1.4           1.3           1.6
Endocrine, nutritional, and                                             
 metabolic disorders...........          4.3           2.1           2.7
Mental disorders:                                                       
    Schizophrenia..............          8.9           9.6          11.6
    Other psychiatric..........         21.5          19.3          20.0
    Mental retardation.........         28.4          46.6          38.6
Diseases of:                                                            
     Nervous system and sense                                           
     organs \2\................         10.1          12.1          13.3
    Circulatory system.........          4.9           1.5           2.3
     Respiratory system........          2.7           1.0           1.0
    Digestive system...........          0.7           0.4           0.6
     Genito-urinary system.....          0.9           1.1           1.6
    Musculoskeletal system and                                          
     connective tissues........          7.3           3.0           4.4
Congenital anomalies...........          1.7           0.9           0.8
Injury and poisoning...........          2.7           2.2           3.3
Other..........................          2.7           1.3           1.2
                                ----------------------------------------
      Total percent............        100.0         100.0         100.0
                                ========================================
      Total individuals \3\....    4,375,650        23,101       34,909 
------------------------------------------------------------------------
\1\ Information on diagnosis of SSI disabled recipients under age 65 is 
  from the December 1995 SSI 10-percent disability file. Information on 
  diagnosis for section 1619 recipients is available from SSI source    
  files.                                                                
\2\ Most of the section 1619(b) participants who are classified as blind
  individuals are included in this category. A few section 1619(b) blind
  participants have a primary impairment other than diseases of the eye 
  and are coded in other categories in this table. Also, there are a few
  participants classified as having diseases of the eye who are not     
  blind, whose impairment does not meet the definition of blindness, and
  are classified as disabled.                                           
\3\ Includes only recipients whose diagnosis information is specifically
  identified on the source files.                                       
                                                                        
 Source: Office of Supplemental Security Income, Social Security        
  Administration.                                                       

    Sex.--In January 1997, 72.9 percent of those receiving 
benefits on the basis of age were women (table 3-15).
    Race.--In January 1997, 48.6 percent of those receiving SSI 
on the basis of age were white; 20.5 percent were black; 27.4 
percent were other races; and in 3.5 percent of the cases, race 
was not reported (table 3-15).
    Other income.--In December 1996, 61.7 percent of SSI 
recipients receiving benefits on the basis of age also received 
Social Security benefits. Only 1.8 percent had earned income 
(table 3-16).
    The number of persons receiving federally administered SSI 
payment and unearned income, by type of income, is included in 
table 3-17.

    TABLE 3-14.--NUMBER AND PERCENTAGE DISTRIBUTION OF SSI RECIPIENTS   
  RECEIVING FEDERALLY ADMINISTERED PAYMENTS BY CATEGORY AND AGE GROUP,  
                              DECEMBER 1996                             
------------------------------------------------------------------------
          Age group             Total       Aged      Blind     Disabled
------------------------------------------------------------------------
Children:                                                               
    Under 5.................       14.5  .........       12.7       14.5
    5-9.....................       28.1  .........       27.0       28.1
    10-14...................       32.8  .........       30.0       32.8
    15-17...................       18.4  .........       17.9       18.4
    18-21 \1\...............        6.2  .........       12.4        6.1
                             -------------------------------------------
      Total percent.........      100.0  .........      100.0      100.0
                             ===========================================
      Total number..........  1,017,992  .........      8,752  1,009,240
                             ===========================================
Adults:                                                                 
    18-21 \1\...............        3.1  .........        3.8        4.2
    22-29...................        8.5  .........       12.4       11.3
    30-39...................       14.3  .........       16.9       19.2
    40-49...................       14.8  .........       16.4       19.8
    50-59...................       14.5  .........       14.9       19.5
    60-64...................        7.4  .........        8.3       10.0
    65-69...................       10.2       19.1        8.0        7.2
    70-74...................        9.6       25.8        6.6        4.1
    75-79...................        7.2       21.2        4.8        2.5
    80 or older.............       10.3       33.9        7.8        2.3
                             -------------------------------------------
      Total percent.........      100.0      100.0      100.0      100.0
                             ===========================================
      Total number..........  5,595,726  1,412,632     73,385  4,109,709
                                                                        
------------------------------------------------------------------------
\1\ Persons aged 18-21 can be classified as either children or adults   
  depending on their student status.                                    
                                                                        
 Source: Office of Research, Evaluation and Statistics, Social Security 
  Administration.                                                       

             Characteristics of Children Receiving Benefits

    At the end of its first year (December 1974), the SSI 
Program paid benefits to 71,000 disabled and blind children, 
less than 2 percent of the SSI caseload. By comparison, in 
December 1980 payments were made to almost 229,000 blind and 
disabled children, 5.5 percent of the 4.1 million recipients in 
that month. By December 1996, 1,018,000 blind and disabled 
children were eligible for SSI payments, nearly a fourteenfold 
increase over December 1974. These children made up 15.4 
percent of the over 6.6 million SSI recipients, and represent a 
fast growing segment of the SSI population.

TABLE 3-15.--NUMBER AND PERCENTAGE DISTRIBUTION OF ALL PERSONS RECEIVING
 FEDERALLY ADMINISTERED PAYMENTS, BY CATEGORY, RACE, AND SEX, JANUARY 1,
                                  1997                                  
------------------------------------------------------------------------
        Race and sex            Total       Aged      Blind     Disabled
------------------------------------------------------------------------
Race:                                                                   
  White.....................       51.6       48.6       53.3       52.4
  Black.....................       28.5       20.5       26.8       30.9
  Other.....................       16.0       27.4       15.6       12.7
  Not reported..............        3.9        3.5        4.3        4.0
Sex and race:                                                           
  Men.......................       41.3       27.1       44.4       45.2
    White...................       20.7       12.0       23.5       23.1
    Black...................       11.8        4.3       11.5       13.9
    Other...................        6.8        9.8        7.2        6.0
    Not reported............        2.0        1.0        2.3        2.3
   Women....................       58.7       72.9       55.6       54.8
    White...................       30.9       36.6       29.8       29.4
     Black..................       16.8       16.2       15.3       16.9
    Other...................        9.1       17.6        8.4        6.7
     Not reported...........        1.9        2.4        2.0        1.7
                             -------------------------------------------
      Total percent.........      100.0      100.0      100.0      100.0
                             ===========================================
      Total number..........  6,504,900  1,412,600     83,500  5,008,800
                                                                        
------------------------------------------------------------------------
Source: Office of Research, Evaluation and Statistics, Social Security  
  Administration.                                                       

    Most notable has been the growth since 1989. Many analysts 
attribute the growth to outreach activities, the Supreme Court 
decision in the Zebley case (see below), expansion of the 
mental impairment category, and reduction in reviews of 
continuing disability.
    To be eligible for SSI payments as a child, an individual 
must be under age 18 (or under 22 if a full-time student), be 
unmarried, and meet the SSI disability or blindness, 
citizenship/residency, and income and resources criteria.
    In December 1996, 62 percent of SSI children were 12 years 
old or younger, and about 19 percent of the children were under 
age 6. About 32 percent, an estimated 316,000 children, were 
between the ages of 13 and 17. Child recipients were more 
likely to be boys than girls, by about 3 to 2. Approximately 45 
percent were nonwhite.
    Eighty-one percent of children live in their parents' home. 
Less than 2 percent are patients in a medical facility where 
more than half of the cost of their care is covered by the 
Medicaid Program. Another 16 percent live in other hospitals, 
nursing homes, residential schools, foster care, or 
independently.
    About 24 percent of the children had some type of unearned 
income. The three major types of unearned income were: support 
from absent parents (8.3 percent), Social Security benefits 
(8.2 percent), and in-kind support and maintenance (6.8 
percent). In addition, about 13 percent of children had income 
``deemed'' from their parents.

   TABLE 3-16.--PERSONS RECEIVING FEDERALLY ADMINISTERED PAYMENTS AND ALSO RECEIVING OTHER INCOME, AND AVERAGE  
                        AMOUNT OF INCOME, BY SOURCE OF INCOME AND CATEGORY, DECEMBER 1996                       
----------------------------------------------------------------------------------------------------------------
                         Source of income                            Total       Aged      Blind      Disabled  
----------------------------------------------------------------------------------------------------------------
                                                                                 Number with income             
                                                                                                                
                                                                  ----------------------------------------------
Social Security benefits.........................................  2,446,307    871,719     29,043     1,545,545
Other unearned income............................................    823,058    289,622      9,736       523,700
Earned income....................................................    289,469     25,642      6,012       257,815
                                                                  ----------------------------------------------
                                                                                Percent with income             
                                                                                                                
                                                                  ----------------------------------------------
Social Security benefits.........................................       37.0       61.7       35.4          30.2
Other unearned income............................................       12.4       20.5       11.9          10.2
Earned income....................................................        4.4        1.8        7.3           5.0
                                                                  ----------------------------------------------
                                                                               Average monthly income           
                                                                                                                
                                                                  ----------------------------------------------
Social Security benefits.........................................    $362.56    $368.45    $378.98       $358.92
Other unearned income............................................     112.46      84.96      98.74        127.91
Earned income....................................................     258.42     243.96     534.75        253.41
                                                                  ----------------------------------------------
      Total number...............................................  6,613,718  1,412,632  \1\ 82,13              
                                                                                                 7  \2\ 5,118,94
                                                                                                              9 
----------------------------------------------------------------------------------------------------------------
\1\ Includes 20,747 persons aged 65 or over.                                                                    
\2\ Includes 646,149 persons aged 65 or older.                                                                  
                                                                                                                
 Source: Office of Research, Evaluation and Statistics, Social Security Administration.                         


   TABLE 3-17.--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 1996       
------------------------------------------------------------------------
                Type of income                   Number \1\  Average \2\
------------------------------------------------------------------------
Veterans' benefits............................      108,697     $157.44 
Railroad retirement...........................        4,409      338.10 
Black lung benefits...........................        1,588      321.77 
Employment pensions \3\.......................       54,131      130.49 
Worker's compensation.........................        4,618      306.98 
Support and maintenance in kind...............      237,899      107.41 
Support from absent parents...................       88,159      159.23 
Asset income..................................      235,707        7.71 
Assistance based on need......................       16,003      104.65 
Other \4\.....................................       64,489      327.33 
                                               -------------------------
       Total..................................      823,058     112.46  
------------------------------------------------------------------------
\1\ With unearned income other than Social Security benefits.           
\2\ Monthly amount of unearned income.                                  
\3\ Includes civil service pension.                                     
\4\ Includes military and demonstration projects.                       
                                                                        
 Source: Office of Research, Evaluation and Statistics, Social Security 
  Administration.                                                       

    Given the rapid growth in the number of children receiving 
SSI, as well as a growing debate over the procedures by which 
children's eligibility should be judged, Congress established 
the National Commission on Childhood Disability to review the 
definition of childhood disability and examine several related 
issues, and report its findings to Congress by November 30, 
1995 (Public Law 103-296). The Commission, which reported in 
October of 1995, recommended that the SSI statute be amended to 
state that the purpose of the SSI Childhood Disability Program 
is to: help low-income families (and other individuals and 
organizations) who care for eligible children with disabilities 
in providing basic necessities to maintain the child at home or 
in another appropriate setting; cover the additional costs of 
caring for and raising a child with a disability; enhance the 
child's opportunity to develop; and offset lost family income 
because a parent remains out of the labor force or 
underemployed to care for the child. The Commission also 
recommended that the SSI definition of childhood disability be 
tightened; that a benefit scale be created which reduces SSI 
benefits for multiple children in the same family to reflect 
economies of scale in the consumption of food, clothing, and 
shelter; that continuing disability reviews be performed at 
least every 2 years for children whose impairment is likely to 
improve; that appropriate health care treatment be required as 
a condition of continuing eligibility for SSI children; that 
parents or the child's representative payee be required to 
report financial expenditures on a periodic random basis; and 
that categorical eligibility for Medicaid be afforded all SSI 
children.
    In May 1995, a report on the Children's SSI Program was 
released by the Committee on Childhood Disability of the 
National Academy of Social Insurance (responding to a study 
request from the House Committee on Ways and Means in the 102d 
Congress). The Academy's expert group contended that the basic 
purpose of SSI cash benefits for children is to support and 
preserve the capacity of families to care for their disabled 
children in their own homes. Thus, the SSI benefit was intended 
to provide for some of the additional, nonmedical, but 
disability-related, costs of raising a disabled child; to 
compensate for some of the income lost because of the everyday 
necessities of caring for a disabled child; and to meet the 
child's basic needs for food, clothing, and shelter. The 
Committee also urged that SSI childhood eligibility criteria be 
tightened, that family benefits in cases where there are 
multiple eligible children in the household be limited, that 
disabled teens be encouraged to work, and that children be 
periodically reviewed (National Academy of Social Insurance, 
1995).
    The General Accounting Office (GAO) also examined the 
growing children's caseload and attempted to understand why the 
caseload was growing so rapidly. GAO compared the results of 
SSA's decisions regarding children by type of disability and 
basis of award 2 years before and 2 years after the medical 
listings were expanded and a new procedure for determining 
disability called the individualized functional assessment had 
been initiated. The study found that the number of children 
receiving SSI disability benefits more than doubled between 
1989 and 1992, from almost 300,000 to 770,500. According to the 
report, although the new individualized functional assessment 
process mandated by the Supreme Court in Sullivan v. Zebley 
added 87,900 children to the rolls, most of the children who 
received new awards during the 2 years after the IFA went into 
effect in 1991 met the medical listing. The report indicated 
that the huge increases in the diagnosis of mental 
impairments--including mental retardation and attention deficit 
hyperactivity disorder--accounted for more than two-thirds of 
the growth in awards.
    Given the rapidly growing number of children in SSI, GAO 
assessed the implementation of the individualized functional 
assessment (IFA). The GAO study found that from 1991 to 1994 
about 219,000 IFA awards were made to children who did not meet 
SSA's more restrictive listing of impairments. These awards 
accounted for one-third of all awards made during this period 
and about $1 billion a year in benefit payments. GAO also found 
that the IFA process relies too heavily on adjudicator's 
judgments, rather than on objective criteria. The study found 
little evidence that parents' coaching their children to act 
out in disruptive behaviors to improve chances of obtaining SSI 
was widespread. However, as the GAO report stated, ``measuring 
the extent to which coaching may actually occur is extremely 
difficult.''
     In December 1996, there were 1,017,992 children enrolled 
in the SSI Program. As a result of the changes made by Public 
Law 104-193, the administration estimates that 135,000 disabled 
children who were receiving SSI on the date of enactment will 
no longer qualify because of the new rules. The average number 
of SSI children is expected to fall to 950,000 in fiscal year 
1998, when the new law is fully implemented, before rising 
again in subsequent years.

                   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.
  --An increase from 107,000 in December 1975 to 1,017,992 in 
        December 1996 of the number of disabled and blind 
        children under 18 receiving SSI benefits.
  --A sharp increase of 1,774,000 between 1983 and 1996 in the 
        number of persons ages 22-64 receiving benefits on the 
        basis of disability or blindness.

               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. Until recently, 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 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 March 1996, Congress passed legislation that ended drug 
and alcohol addiction as conditions that qualify individuals 
for SSI benefits. Under Public Law 104-121, individuals would 
not be considered disabled for either SSI or DI if drug 
addiction or alcoholism were the contributing factor material 
to their disability. Thus, eligibility for SSI and DI benefits 
ended for persons classified as substance abusers. The law 
mandates the Commissioner of Social Security to require that 
persons who qualify 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 
authorizes $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.
    In June 1996, there were about 119,000 SSI recipients whose 
disability was based solely on their drug addiction or 
alcoholism. The Congressional Budget Office (CBO) estimated 
that perhaps as many of 75 percent of them would be eligible 
for SSI based on another sufficiently disabling condition. Even 
so, by January 1997, 9 months after the end of eligibility for 
addicted applicants and 1 month after the termination of 
benefits of the 119,000 SSI recipients whose sole disability 
was addiction, only 56,000 (47 percent) continued to receive 
SSI based on some other disabling condition.

                   ELIGIBILITY OF NONCITIZENS FOR SSI

    Although the 1996 welfare reform law (Public Law 104-193) 
barred most noncitizens from receiving SSI, this prohibition 
was in effect repealed 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. For more 
information on provisions and issues related to noncitizens, 
see appendix J.

                      ELIGIBILITY OF THE HOMELESS

    SSA has developed several outreach programs and 
administrative initiatives to better meet the needs of the 
homeless who may be eligible for SSI. This action was prompted 
by evidence that approximately 30 to 40 percent of the 
residents of emergency homeless shelters are chronically 
mentally ill and are former residents of mental institutions.
    These initiatives address the special problems related to 
the homeless: they are often difficult to locate and contact; 
they have limited ability to find information needed to apply 
for benefits; and they are often reluctant to follow through 
with the claims process or are incapable of doing so. While 
many of the chronically mentally ill live with family members 
or have other ongoing contact with those who can assist them 
with daily living activities, the homeless mentally ill are 
more likely to have very limited contact with family or others 
who could assist them in obtaining housing or applying for 
benefits.
    Because homelessness is a barrier to filing for SSI 
benefits, SSA has initiated a wide range of outreach activities 
aimed at this population. For example, local field offices have 
established ongoing programs in which local social service 
agencies, soup kitchens, shelters, and churches screen homeless 
people for possible SSI eligibility, refer them to SSA, and 
help them through the application process. Many of SSA's 
outreach demonstration programs deal specifically with the 
homeless or concentrate on the homeless in addition to other 
target populations, especially individuals who suffer from 
mental illness or AIDS.
    SSA is also participating in the Interagency Council on 
Homelessness (ICH) established by the Congress in 1987 to 
assist homeless individuals and families.

            SPECIAL SSI PROVISIONS FOR THE WORKING DISABLED

                        Earned Income Disregards

    Since SSI began in 1974, the law has required that a 
portion of the earned income of SSI recipients be disregarded 
in determining eligibility for and the amount of SSI benefits. 
In determining SSI eligibility and benefits, 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 
are disregarded. In addition, any work-related expenses are 
disregarded in the case of blind persons and impairment-related 
work expenses are disregarded in the case of disabled persons. 
Also, 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, 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 (DI) Program: after a trial work 
period, work at the level of substantial gainful activity ($500 
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. (Many States provide 
automatic Medicaid coverage to all recipients of Federal SSI 
payments. Nearly all States follow the SSI definition of 
disability to establish Medicaid eligibility.) Thus, disabled 
individuals had a disincentive to work because of their fear of 
losing SSI benefits and Medicaid.

                  Overview of Section 1619 Provisions

    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 $1,053 per month in 1997 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 she did not have those 
earnings.
    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 (PASS).
    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 medical care as well as 
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.

                     MEASURES OF SSI PARTICIPATION

                        SSI Participation Rates

    Table 3-18 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 3-20. 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 incomes 
among the aged and decreasing participation among low-income 
elderly. The rate was 6.2 percent in 1996. 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). After 
1984, the rate declined to 56.5 percent in 1987, increased to 
60.1 percent in 1989, declined to 52.7 percent in 1992, and 
increased to 63.7 percent in 1995. 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.

                                  TABLE 3-18.--SSI PARTICIPATION RATES, 1975-96                                 
                                                  [In percent]                                                  
----------------------------------------------------------------------------------------------------------------
                                                                                           Among                
                                                               Among all      Among     pretransfer     Among   
                                                                elderly      elderly      elderly       entire  
                                                                               poor         poor      population
----------------------------------------------------------------------------------------------------------------
1975........................................................         11.1         75.6           NA          2.0
1976........................................................         10.3         72.4           NA          1.9
1977........................................................          9.8         74.1           NA          1.9
1978........................................................          9.4         71.5           NA          1.9
1979........................................................          9.0         61.3         68.7          1.8
1980........................................................          8.7         57.5         64.7          1.8
1981........................................................          8.1         55.0         63.3          1.8
1982........................................................          7.5         53.6         62.3          1.7
1983........................................................          7.3         55.2         61.9          1.7
1984........................................................          7.3         61.2         66.3          1.7
1985........................................................          7.1         58.7         64.5          1.7
1986........................................................          6.9         57.9         63.4          1.8
1987........................................................          6.8         56.5         64.7          1.8
1988........................................................          6.6         57.6         64.3          1.8
1989........................................................          6.5         60.1         64.6          1.9
1990........................................................          6.6         56.3         63.3          1.9
1991........................................................          6.8         55.0         61.1          2.0
1992........................................................          6.5         52.7           NA          2.2
1993........................................................          6.7         56.3           NA          2.3
1994........................................................          6.4         57.8           NA          2.4
1995........................................................          6.3         63.7           NA          2.5
1996........................................................          6.2           NA           NA         2.5 
----------------------------------------------------------------------------------------------------------------
NA--Not available.                                                                                              
                                                                                                                
 Note.--The denominator for columns 1 and 4 is in table 15, appendix N, the denominator for column 3 is shown in
  table 3 of appendix J, and the denominator for column 3 is in table 19 of appendix J.                         
                                                                                                                
 Source: Staff of the Committee on Ways and Means.                                                              

    The final column of table 3-18 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-
20. 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 has since steadily increased to 
2.5 percent--its highest level ever--in 1995 and 1996.
    Table 3-19 shows the percentage of a given State's 
population receiving SSI benefits for selected years.

                       TABLE 3-19.--SSI RECIPIENCY RATES BY STATE, SELECTED YEARS 1975-96                       
----------------------------------------------------------------------------------------------------------------
                      State                        1975    1985    1990    1991    1992    1993    1995    1996 
----------------------------------------------------------------------------------------------------------------
Alabama.........................................    3.98    3.29    3.29    3.35    3.43    3.64    3.86    3.91
Alaska..........................................    0.81    0.65    0.84    0.87    0.90    0.96    1.09    1.20
Arizona.........................................    1.24    1.04    1.22    1.33    1.42    1.54    1.77    1.71
Arkansas........................................    4.09    3.14    3.23    3.34    3.47    3.66    3.86    3.80
California......................................    3.09    2.59    2.93    3.03    3.10    3.14    3.17    3.29
                                                                                                                
Colorado........................................    1.37    0.93    1.14    1.23    1.29    1.38    1.52    1.52
Connecticut.....................................    0.76    0.83    0.98    1.05    1.10    1.19    1.36    1.41
Delaware........................................    1.19    1.21    1.21    1.23    1.27    1.34    1.51    1.58
District of Columbia............................    2.23    2.51    2.67    2.83    3.00    3.21    3.63    3.76
Florida.........................................    1.86    1.62    1.71    1.82    1.90    2.06    2.34    2.44
                                                                                                                
Georgia.........................................    3.27    2.56    2.46    2.51    2.55    2.65    2.80    2.74
Hawaii..........................................    1.08    1.08    1.25    1.27    1.30    1.40    1.52    1.64
Idaho...........................................    1.06    0.84    1.03    1.10    1.21    1.28    1.44    1.46
Illinois........................................    1.22    1.18    1.55    1.67    1.78    2.00    2.25    2.28
Indiana.........................................    0.83    0.87    1.09    1.17    1.26    1.39    1.52    1.56
                                                                                                                
Iowa............................................    1.00    0.96    1.18    1.23    1.29    1.37    1.47    1.49
Kansas..........................................    1.05    0.87    0.99    1.05    1.14    1.26    1.44    1.51
Kentucky........................................    2.83    2.65    3.11    3.27    3.42    3.71    4.23    4.37
Louisiana.......................................    3.90    2.87    3.15    3.29    3.49    3.84    4.18    4.21
Maine...........................................    2.31    1.89    1.93    1.97    2.03    2.17    2.47    2.23
                                                                                                                
Maryland........................................    1.17    1.16    1.25    1.30    1.35    1.44    1.61    1.67
Massachusetts...................................    2.30    1.91    1.98    2.12    2.23    2.40    2.72    2.73
Michigan........................................    1.31    1.35    1.54    1.61    1.71    1.93    2.19    2.23
Minnesota.......................................    1.00    0.78    0.92    0.99    1.05    1.17    1.84    1.38
Mississippi.....................................    5.21    4.28    4.42    4.56    4.68    4.98    5.33    5.23
                                                                                                                
Missouri........................................    2.10    1.58    1.66    1.75    1.83    1.96    2.15    2.18
Montana.........................................    1.12    0.92    1.25    1.33    1.38    1.44    1.61    1.63
Nebraska........................................    1.06    0.88    0.99    1.05    1.09    1.19    1.30    1.33
Nevada..........................................    1.00    0.85    0.95    0.98    1.04    1.14    1.37    1.36
New Hampshire...................................    0.67    0.62    0.62    0.68    0.71    0.77    0.92    0.95
                                                                                                                
New Jersey......................................    1.11    1.23    1.36    1.44    1.52    1.66    1.81    1.84
New Mexico......................................    2.29    1.83    2.08    2.19    2.25    2.39    2.65    2.67
New York........................................    2.24    2.00    2.31    2.46    2.60    2.85    3.20    3.33
North Carolina..................................    2.71    2.21    2.24    2.33    2.36    2.47    2.65    2.67
North Dakota....................................    1.25    0.96    1.17    1.25    1.30    1.34    1.42    1.41
                                                                                                                
Ohio............................................    1.22    1.19    1.44    1.55    1.63    1.84    2.19    2.28
Oklahoma........................................    3.03    1.81    1.92    1.97    2.02    2.13    2.27    2.28
Oregon..........................................    1.12    0.95    1.11    1.18    1.24    1.35    1.43    1.52
Pennsylvania....................................    1.24    1.39    1.60    1.69    1.77    1.90    2.16    2.23
Rhode Island....................................    1.72    1.62    1.74    1.83    1.91    2.05    3.27    2.53
                                                                                                                
South Carolina..................................    2.84    2.60    2.59    2.61    2.67    2.80    2.97    3.04
South Dakota....................................    1.32    1.19    1.45    1.53    1.62    1.72    1.87    1.92
Tennessee.......................................    3.24    2.71    2.87    2.98    3.06    3.22    3.42    3.40
Texas...........................................    2.23    1.57    1.73    1.81    1.87    2.00    2.17    2.16
Utah............................................    0.76    0.53    0.73    0.79    0.84    0.94    1.06    1.05
                                                                                                                
Vermont.........................................    1.93    1.76    1.79    1.89    1.99    2.08    2.25    2.19
Virginia........................................    1.53    1.49    1.54    1.61    1.67    1.76    1.95    2.00
Washington......................................    1.46    1.09    1.27    1.34    1.39    1.50    1.66    1.72
West Virginia...................................    2.37    2.24    2.63    2.78    2.91    3.17    3.66    3.78
Wisconsin.......................................    1.44    1.50    1.75    1.83    1.88    2.04    2.17    1.86
Wyoming.........................................    0.67    0.45    0.76    0.85    0.92    1.04    1.19    1.24
                                                 ---------------------------------------------------------------
      Total \1\.................................    2.00    1.74    1.94    2.03    2.11    2.26    2.46   2.50 
----------------------------------------------------------------------------------------------------------------
\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, 1991, 1992, and 1993, the numbers of unknown (in     
  thousands) respectively were 256, 14, 0, 96, 71, 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 total population of each  
  State in July of the selected year. For 1995, percentages are calculated as the number of SSI recipients in   
  July 1995 divided by the total population of each State in July 1995. For 1996, percentages are calculated as 
  the number of SSI recipients in July 1996 divided by the total population of each State in July 1996.         

                Changes in Number of Recipients, 1970-96

    SSI is one of the largest cash assistance programs for the 
poor and one of the fastest growing entitlement programs; 
program costs grew 20 percent annually from 1991 through 1994. 
According to GAO, three groups have accounted for nearly 90 
percent of the SSI Program's growth since 1991: 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 has 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 3-20 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 1996, there were over 6.6 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 1.4 million individuals in 1996 (2.1 
million if disabled and blind persons over 65 are counted). 
Meanwhile, the number of blind or disabled receiving assistance 
increased sharply from 1.0 million in 1970 to 5.2 million in 
1996 (4.5 million if persons over age 65 are excluded).
    The number of persons receiving SSI payments, by State, in 
December 1996 is provided in table 3-21.

  TABLE 3-20.--NUMBER OF PERSONS RECEIVING FEDERALLY ADMINISTERED SSI PAYMENTS, 1974-2002; AND ADULT ASSISTANCE 
                                          UNDER PRIOR PROGRAMS, 1970-73                                         
                                                 [In thousands]                                                 
----------------------------------------------------------------------------------------------------------------
                                                                     Blind or disabled                          
                                                                 ------------------------- Federal      State   
                  Year \1\                   Total \2\  Aged \3\             65 and older  SSI \6\  supplemental
                                                                  Total \4\       \5\                   only    
----------------------------------------------------------------------------------------------------------------
1970.......................................     3,098      2,082     1,016   ............  .......  ............
1971.......................................     3,172      2,024     1,148   ............  .......  ............
1972.......................................     3,182      1,934     1,248   ............  .......  ............
1973.......................................     3,173      1,820     1,353   ............  .......  ............
1974.......................................     3,996      2,286     1,710          (\7\)    (\8\)        (\8\) 
1975.......................................     4,314      2,307     2,007            201    3,893          421 
1976.......................................     4,236      2,148     2,088            249    3,799          437 
1977.......................................     4,238      2,051     2,187            302    3,778          460 
1978.......................................     4,217      1,968     2,249            344    3,755          462 
1979.......................................     4,150      1,872     2,278            386    3,687          462 
1980.......................................     4,142      1,808     2,334            419    3,682          460 
1981.......................................     4,019      1,678     2,341            443    3,590          429 
1982.......................................     3,858      1,549     2,309            462    3,473          384 
1983.......................................     3,901      1,515     2,386            485    3,590          312 
1984.......................................     4,029      1,530     2,499            507    3,699          331 
1985.......................................     4,138      1,504     2,634            525    3,799          339 
1986.......................................     4,269      1,473     2,796            540    3,922          348 
1987.......................................     4,385      1,455     2,930            560    4,019          366 
1988.......................................     4,464      1,433     3,030            573    4,089          375 
1989.......................................     4,593      1,439     3,154            587    4,206          387 
1990.......................................     4,817      1,454     3,363            605    4,412          405 
1991.......................................     5,118      1,465     3,654            615    4,730          389 
1992.......................................     5,566      1,471     4,095            628    5,202          364 
1993.......................................     5,984      1,475     4,507            638    5,636          348 
1994.......................................     6,296      1,466     4,830            653    5,965          331 
1995.......................................     6,514      1,446     5,068            669    6,194          320 
1996.......................................     6,614      1,413     5,201            678    6,326          288 
1997 \9\...................................     6,140      1,136     5,003         (\10\)    5,863          283 
1998 \9\...................................     6,161      1,120     5,041         (\10\)    5,891          277 
1999 \9\...................................     6,221      1,105     5,116         (\10\)    5,956          270 
2000 \9\...................................     6,277      1,092     5,185         (\10\)    6,018          265 
2001 \9\...................................     6,331      1,080     5,251         (\10\)    6,076          260 
2002 \9\...................................     6,380      1,070     5,310         (\10\)    6,130         255  
----------------------------------------------------------------------------------------------------------------
\1\ Data are for December of each year.                                                                         
\2\ All persons with Federal SSI payments and/or federally administered State supplementation for 1974-2002. For
  1970-73, 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 1970-73, this column is the number of recipients under the Old-Age Assistance Program.                  
\4\ For 1970-73, 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 1997-2002, data are projections based on the President's budget estimates of February 1997.             
\10\ Estimates not available.                                                                                   
                                                                                                                
 Source: Office of the Actuary, Social Security Administration.                                                 


                 TABLE 3-21.--NUMBER OF PERSONS RECEIVING SSI PAYMENTS, BY STATE, DECEMBER 1996                 
----------------------------------------------------------------------------------------------------------------
                                                                Federally administered                 State-   
                       State                       ------------------------------------------------ administered
                                                       Total       Aged        Blind     Disabled     total \1\ 
----------------------------------------------------------------------------------------------------------------
Alabama \2\.......................................     166,975      35,595       1,416     129,964        1,683 
Alaska \2\........................................       7,346       1,227         114       6,005        4,726 
Arizona \2\.......................................      75,763      13,533         910      61,320          610 
Arkansas..........................................      94,368      19,474       1,118      73,776  ............
California........................................   1,044,753     332,007      21,786     690,960  ............
Colorado \2\......................................      57,501       9,542         545      47,414       31,462 
Connecticut \2\...................................      46,121       7,483         517      38,121       29,153 
Delaware..........................................      11,447       1,560         125       9,762  ............
District of Columbia..............................      20,270       3,050         185      17,035  ............
Florida \3\.......................................     352,775      99,546       3,213     250,016       14,223 
Georgia...........................................     200,894      41,686       2,512     156,696  ............
Hawaii............................................      19,513       7,611         165      11,737  ............
Idaho \2\.........................................      17,417       1,932         166      15,319        2,985 
Illinois \2\......................................     268,422      35,107       2,439     230,876       44,137 
Indiana \2\.......................................      90,656       8,989       1,072      80,595        1,139 
Iowa..............................................      41,936       5,694         935      35,307  ............
Kansas............................................      38,263       4,437         399      33,427  ............
Kentucky \2\......................................     170,007      23,675       1,681     144,651        5,680 
Louisiana.........................................     182,403      31,646       2,113     148,644  ............
Maine.............................................      27,830       4,143         241      23,446  ............
Maryland \3\......................................      84,747      16,727         823      67,197        1,680 
Massachusetts.....................................     165,563      46,602       4,511     114,450  ............
Michigan..........................................     213,546      22,208       2,037     189,301  ............
Minnesota \2\.....................................      63,823      10,463         752      52,608   \4\ 21,339 
Mississippi.......................................     141,197      29,972       1,413     109,812  ............
Missouri \2\......................................     116,446      16,450       1,043      98,953       10,026 
Montana...........................................      14,213       1,628         140      12,445  ............
Nebraska \2\......................................      21,831       2,943         247      18,641        5,717 
Nevada............................................      21,902       6,296         587      15,019  ............
New Hampshire \2\.................................      11,040       1,258         115       9,667        6,678 
New Jersey........................................     145,707      35,363       1,098     109,246  ............
New Mexico \2\....................................      45,740       9,718         637      35,385          243 
New York..........................................     606,000     145,860       3,653     456,487  ............
North Carolina \2\................................     195,134      42,387       2,361     150,386       20,209 
North Dakota \2\..................................       8,899       1,731          80       7,088      \4\ 355 
Ohio..............................................     254,184      20,897       2,426     230,861  ............
Oklahoma \2\......................................      75,160      14,290         937      59,933       72,741 
Oregon \2\........................................      48,481       7,177         630      40,674   \4\ 16,971 
Pennsylvania......................................     270,221      41,809       2,664     225,748  ............
Rhode Island......................................      25,283       4,860         248      20,175  ............
South Carolina \3\................................     112,187      22,442       1,732      88,013        4,351 
South Dakota \3\..................................      13,750       2,406         140      11,204        3,576 
Tennessee.........................................     178,885      30,701       1,848     146,336  ............
Texas \5\.........................................     412,028     125,442       5,630     280,956  ............
Utah..............................................      21,013       2,206         298      18,509  ............
Vermont...........................................      12,890       1,969         129      10,792  ............
Virginia \2\......................................     133,433      27,396       1,589     104,448        6,776 
Washington........................................      94,795      13,435         940      80,420           82 
West Virginia \5\.................................      69,720       7,307         676      61,737  ............
Wisconsin.........................................      94,719      11,897       1,036      81,786  ............
Wyoming \2\.......................................       5,876         669          55       5,152        2,923 
Other:                                                                                                          
  N. Mariana Islands..............................         555         171          10         374  ............
                                                   -------------------------------------------------------------
      Total \6\...................................   6,613,718   1,412,632      82,137   5,118,949     309,383  
----------------------------------------------------------------------------------------------------------------
\1\ July 1996 data.                                                                                             
\2\ Data for Federal SSI payments only. State has State-administered supplementation.                           
\3\ Data for Federal SSI payments and federally administered State supplementation only, State also has State-  
  administered supplementation.                                                                                 
\4\ Estimated data.                                                                                             
\5\ Data for Federal SSI payments only, State supplementary payments not made.                                  
\6\ Includes fewer than 200 cases not distributed by State.                                                     
                                                                                                                
 Source: Office of Research, Evaluation and Statistics and Office of Retirement and Survivors insurance and     
  Supplemental Security Income Policy, Social Security Administration.                                          

                           SSI Program Costs

    Table 3-22 shows total expenditures for the SSI Program in 
each State, including not only the federally administered 
Federal and State supplementation payments but also the State-
administered State supplementation payments. Table 3-23 shows 
the total (Federal- and State-administered) State 
supplementation payments for SSI for fiscal years 1986-96.
    Table 3-24 presents the total amount of Federal and State 
benefit payments from calendar years 1970-87 and fiscal years 
1988-2002. 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 1996, Federal 
benefit payments totaled $25.0 billion and State payments 
totaled $3.4 billion, amounting to an overall total of $28.4 
billion. In fiscal year 1997, total (Federal and State) SSI 
benefits are estimated to total $29.5 billion and projected to 
increase to $32.7 billion in fiscal year 2002.

    TABLE 3-22.--SUPPLEMENTAL SECURITY INCOME: TOTAL PAYMENTS, FEDERAL SSI PAYMENTS, AND FEDERAL- AND STATE-    
                           ADMINISTERED STATE SUPPLEMENTARY PAYMENTS, FISCAL YEAR 1996                          
                                            [In thousands of dollars]                                           
----------------------------------------------------------------------------------------------------------------
                                                                                      State supplementation     
                                                                  Federal SSI  ---------------------------------
                     State                           Total            \1\           Federally          State    
                                                                                administered \2\   administered 
----------------------------------------------------------------------------------------------------------------
Alabama.......................................        $624,792        $623,765  ................          $1,027
Alaska \3\....................................          41,191          28,219  ................          12,972
Arizona.......................................         304,588         304,214  ................             374
Arkansas......................................         334,450         334,445               $5   ..............
California....................................       5,561,339       3,567,026        1,994,313   ..............
Colorado......................................         286,246         227,132  ................          59,114
Connecticut...................................         290,516         192,281  ................          98,235
Delaware......................................          42,777          41,941              836   ..............
District of Columbia..........................          84,391          81,512            2,879   ..............
Florida.......................................       1,410,256       1,391,872            (\4\)           18,384
Georgia.......................................         722,312         722,291               21   ..............
Hawaii........................................          86,890          75,411           11,479   ..............
Idaho.........................................          70,967          66,214  ................           4,753
Illinois......................................       1,223,862       1,191,972  ................          31,890
Indiana.......................................         367,762         364,222  ................           3,540
Iowa..........................................         152,619         149,601            3,018   ..............
Kansas........................................         149,357         149,356                1   ..............
Kentucky......................................         684,809         668,482  ................          16,327
Louisiana.....................................         730,987         730,987            (\5\)   ..............
Maine.........................................          99,499          95,583            3,916   ..............
Maryland......................................         356,340         349,910               36            6,394
Massachusetts.................................         724,965         565,336          159,629   ..............
Michigan......................................         932,521         905,134           27,387   ..............
Minnesota \3\.................................         310,857         247,137  ................          63,720
Mississippi...................................         514,826         514,818                8   ..............
Missouri......................................         476,469         451,315  ................          25,154
Montana.......................................          54,704          53,799              905   ..............
Nebraska......................................          86,828          80,535  ................           6,293
Nevada........................................          84,433          80,350            4,083   ..............
New Hampshire.................................          51,502          41,013  ................          10,489
New Jersey....................................         612,883         535,503           77,380   ..............
New Mexico....................................         173,542         173,255  ................             287
New York......................................       2,867,367       2,340,239          527,128   ..............
North Carolina................................         763,010         677,736  ................          85,274
North Dakota \3\..............................          31,379          29,462  ................           1,917
Ohio..........................................       1,095,633       1,095,632                1   ..............
Oklahoma......................................         313,262         276,274  ................          36,988
Oregon \3\....................................         222,681         194,636  ................          28,045
Pennsylvania..................................       1,201,433       1,071,815          129,618   ..............
Rhode Island..................................         105,415          85,765           19,650   ..............
South Carolina................................         411,782         398,524  ................          13,258
South Dakota..................................          50,784          49,154                8            1,622
Tennessee.....................................         666,612         666,612  ................  ..............
Texas.........................................       1,448,235       1,448,235            (\4\)   ..............
Utah..........................................          84,295          84,238               57   ..............
Vermont.......................................          49,979          40,577            9,402   ..............
Virginia......................................         512,108         492,476  ................          19,632
Washington....................................         419,008         392,213           26,769               26
West Virginia.................................         289,083         289,083  ................  ..............
Wisconsin.....................................         407,264         374,754           32,510   ..............
Wyoming.......................................          22,828          22,138  ................             690
N. Mariana Islands                                       2,481           2,481  ................  ..............
                                               -----------------------------------------------------------------
      Total...................................     $28,615,468      25,038,366        3,030,697        $546,405 
----------------------------------------------------------------------------------------------------------------
\1\ Includes $1.7 million not distributed by State.                                                             
\2\ Total reduced by $342,000 due to adjustments not yet identified and credited by State.                      
\3\ Data estimated for State-administered payments.                                                             
\4\ Amount not shown; negative adjustment exceeds amount paid.                                                  
\5\ Less than $500.                                                                                             
                                                                                                                
 Source: Office of Research, Evaluation and Statistics, Social Security Administration.                         


                                                              TABLE 3-23.--STATE SSI SUPPLEMENTATION PAYMENTS, FISCAL YEARS 1986-96                                                             
                                                                                    [In thousands of dollars]                                                                                   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Year                                                                    
                      State                       ----------------------------------------------------------------------------------------------------------------------------------------------
                                                       1986         1987         1988         1989         1990         1991         1992         1993         1994         1995         1996   
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Alabama..........................................      $13,659      $11,606      $10,436       $7,964       $6,594       $6,394       $3,845       $2,083       $1,673       $1,370       $1,027
Alaska...........................................       12,970       12,970       12,970       12,970       12,972       12,972       12,972       12,972       12,972       12,972       12,972
Arizona..........................................        2,668        3,045        3,309        2,691        2,560        3,129        3,129        3,129          411          409          374
Arkansas.........................................           28           32           20           14           15           12            8            0            6            4            5
California.......................................    1,466,079    1,729,305    1,862,170    2,038,339    2,274,296    2,303,637    2,433,459    2,212,330    2,014,831    1,981,002    1,994,313
                                                                                                                                                                                                
Colorado.........................................       38,320       35,416       24,132       41,035       42,649       50,002       53,309       55,057       53,376       56,703       59,114
Connecticut......................................       36,578       46,577       54,584       74,257       67,670       98,838       94,725       96,836       99,424      100,330       98,235
Delaware.........................................          671          703          730          725          708          721          750          747          819          817          836
District of Columbia.............................        4,202        4,265        4,538        4,498        4,365        4,278        4,694        4,899        5,095        4,342        2,879
Florida..........................................        9,718       11,314       11,309       12,609       14,656       18,055       18,899       18,608       18,608       18,380       18,384
                                                                                                                                                                                                
Georgia..........................................            8           19           18           10           16            9           12           19           18           15           21
Hawaii...........................................        3,740        3,893        4,263        6,799       10,885       10,314       10,698       11,066       11,299       11,305       11,479
Idaho............................................        4,136        4,205        4,205        4,205        4,212        4,212        4,212        4,212        4,212        9,459        4,753
Illinois.........................................       51,197       56,856       59,573       55,716       57,137       65,756       64,241       65,836       73,398       69,450       31,890
Indiana..........................................        1,744        2,666        3,619        3,099        3,285        3,405        3,563        3,817        3,884        3,786        3,540
                                                                                                                                                                                                
Iowa.............................................        1,908        2,098        2,204        2,275        2,408        2,508        2,672        2,859        2,940        2,951        3,018
Kansas...........................................           27           34           25           21           21           17           12            0            2            1            1
Kentucky.........................................        9,795       10,109       10,467       10,473       11,611       14,801       15,492       15,313       16,612       16,843       16,327
Louisiana........................................           42           47           33           23           25           19           12            4        (\1\)        (\1\)        (\1\)
Maine............................................        5,413        7,454        7,540        7,452        7,494        7,371        7,325        7,233        7,415        7,542        3,916
                                                                                                                                                                                                
Maryland.........................................        5,252        5,505        6,159        6,159        6,155        6,520        6,542        6,269        6,102        6,235        6,430
Massachusetts....................................      109,452      112,561      120,010      114,691      117,113      124,761      137,516      147,866      153,034      160,080      159,629
Michigan.........................................       66,338       68,779       69,833       72,369       74,682       72,561       61,636       62,683       61,955       37,296       27,387
Minnesota........................................       19,818       22,850       24,667       40,641       43,924       48,933       55,224       53,860       53,860       63,720       63,720
Mississippi......................................           29           35           27           26           22           19           12           11            7            6            8
                                                                                                                                                                                                
Missouri.........................................        5,132        4,410        4,009        3,102        2,808        8,476       26,158       25,866       24,286       29,549       25,154
Montana..........................................          834          844          839          842          864          910          909          902          960          940          905
Nebraska.........................................        5,348        5,457        5,454        6,550        5,793        5,334        6,175        6,705        5,990        5,970        6,293
Nevada...........................................        2,531        2,594        2,704        2,771        2,928        3,029        3,184        3,586        3,717        3,885        4,083
New Hampshire....................................        7,326        6,501        5,865        9,662        6,843        7,675        7,948        8,512        9,573       11,039       10,489
                                                                                                                                                                                                
New Jersey.......................................       48,124       49,996       50,446       59,291       53,697       57,328       64,765       71,965       74,242       76,655       77,380
New Mexico.......................................          216          280          248          270          263          307          333          329          321          293          287
New York.........................................      277,035      305,678      317,504      366,972      388,150      410,081      440,374      476,029      494,345      510,096      527,128
North Carolina...................................       41,091       47,963       52,745       58,989       63,135       75,066       91,925       95,445      106,493      115,245       85,274
North Dakota.....................................        1,518        1,406        1,480        1,549        1,390        1,291        1,408        1,220        1,676        1,928        1,917
                                                                                                                                                                                                
Ohio.............................................           35           37           31           30           34           31           31           28           18           13            1
Oklahoma.........................................       31,380       32,894       34,045       33,414       34,168       35,055       36,012       36,557       34,987       35,811       36,988
Oregon...........................................        9,767       10,342       11,843       15,419       17,946       20,169       20,169       20,169       20,169       28,045       28,045
Pennsylvania.....................................       69,186       75,502       74,670       76,565       79,571       84,668       94,971      109,947      128,339      136,153      129,618
Rhode Island.....................................        9,402        9,848       10,263       10,816       11,729       12,973       14,967       16,097       17,384       18,811       19,650
                                                                                                                                                                                                
South Carolina...................................        4,812        4,927        5,004        9,785        8,897       11,994       11,685       12,377       11,880       12,750       13,258
South Dakota.....................................          591          636          587          590          567          620          652          681          709           73        1,630
Tennessee........................................            0            6            1            4            4            1            1            0        (\2\)        (\2\)        (\2\)
Texas............................................            0            0            0            0            0            0            0            0        (\3\)        (\3\)        (\3\)
Utah.............................................          872          855        1,086          981          808          898          959          878          201           60           57
                                                                                                                                                                                                
Vermont..........................................        7,236        7,684        7,841        8,346        8,685        9,374       10,299        9,927        9,715       10,396        9,402
Virginia.........................................       12,164       12,846       14,432       15,949       15,296       16,863       16,782       17,317       17,752       19,156       19,632
Washington.......................................       17,443       19,424       18,058       18,994       19,915       21,558       24,043       26,808       28,374       28,516       26,795
West Virginia....................................            0            0            0            0            0            0            0            0        (\3\)        (\3\)        (\3\)
Wisconsin........................................       80,288       86,363       90,642       95,205      100,276      107,543      118,063      132,761      125,789      123,693       32,510
Wyoming..........................................          216          218          226          296          279          326          440          527          597          660          690
                                                  ----------------------------------------------------------------------------------------------------------------------------------------------
      Total......................................    2,496,275    2,835,516    3,006,796    3,308,277    3,589,348    3,750,812    3,987,110    3,862,151    3,719,314    3,735,250   3,577,102 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Less than $500.                                                                                                                                                                             
\2\ Amount not shown; negative adjustment exceeds amount paid.                                                                                                                                  
\3\ Texas and West Virginia do not pay State supplementation.                                                                                                                                   
                                                                                                                                                                                                
 Source: Office of Research, Evaluation and Statistics, Social Security Administration.                                                                                                         


  TABLE 3-24.--FEDERAL AND STATE BENEFIT PAYMENTS UNDER SSI AND PRIOR ADULT ASSISTANCE PROGRAMS, CALENDAR YEARS 
                                     1970-87 AND FISCAL YEARS 1988-2002 \1\                                     
                                            [In millions of dollars]                                            
----------------------------------------------------------------------------------------------------------------
                                          Total                             State payments              SSI     
                                        constant   Federal    Total  ---------------------------- administrative
          Year \2\              Total     1996    payments    State     Federally       State      costs (fiscal
                                         dollars            payments  administered  administered       year)    
----------------------------------------------------------------------------------------------------------------
1970........................    $2,939   $11,885    $1,801    $1,138  ............  ............  ..............
1971........................     3,206    12,420     (\3\)     (\3\)  ............  ............  ..............
1972........................     3,392    12,732     1,993     1,398  ............  ............  ..............
1973........................     3,418    12,078     1,987     1,432  ............  ............  ..............
1974........................     5,246    16,696     3,833     1,413      $1,264          $149           $285   
                                                                                                                
1975........................     5,878    17,142     4,314     1,565       1,403           162            399   
1976........................     6,066    16,727     4,512     1,554       1,388           166            500   
1977........................     6,306    16,327     4,703     1,603       1,431           172             NA   
1978........................     6,552    15,767     4,881     1,671       1,491           180            539   
1979........................     7,075    15,290     5,279     1,796       1,590           207            610   
                                                                                                                
1980........................     7,941    15,121     5,866     2,074       1,848           226            668   
1981........................     8,593    14,832     6,518     2,076       1,839           237            718   
1982........................     8,981    14,602     6,907     2,074       1,798           276            779   
1983........................     9,404    14,814     7,423     1,981       1,711           270            830   
1984........................    10,372    15,663     8,281     2,091       1,792           299            864   
                                                                                                                
1985........................    11,060    16,127     8,777     2,283       1,973           311            953   
1986........................    12,081    17,295     9,498     2,583       2,243           340          1,022   
1987........................    12,951    17,887    10,029     2,922       2,563           359            976   
1988........................    14,375    19,065    11,368     3,007       2,645           362            975   
1989........................    14,707    18,609    11,399     3,308       2,881           427          1,051   
                                                                                                                
1990........................    16,095    19,321    12,507     3,589       3,159           431          1,075   
1991........................    17,979    20,711    14,228     3,751       3,235           516          1,257   
1992........................    21,258    23,773    17,270     3,987       3,431           556          1,538   
1993........................    24,173    26,247    20,312     3,862       3,298           564          1,467   
1994 \4\....................    28,288    29,949    24,461     3,827       3,219           608          1,781   
1995 \4\, \5\...............    28,124    28,954    24,443     3,681       3,060           621          1,978   
1996 \4\....................    28,429    28,429    25,038     3,391       2,845           546          1,949   
1997 \4\....................    29,452    28,762    26,442     3,010       3,010        NA \6\          2,133   
1998 \4\, \6\...............    28,445    27,048    25,435     3,010       3,010        NA \6\          2,248   
1999 \4\, \6\...............    29,749    27,464    26,739     3,010       3,010        NA \6\          2,255   
2000 \4\, \6\...............    32,907    29,495    29,662     3,245       3,245        NA \6\          2,276   
2001 \4\, \6\...............    29,174    25,387    26,399     2,775       2,755        NA \6\          2,274   
2002 \4\, \6\...............    32,677    27,580    29,667     3,010       3,010        NA \6\         2,268    
----------------------------------------------------------------------------------------------------------------
\1\ Payments and adjustments during the respective year but not necessarily accrued for that year.              
\2\ 1970-73 refers to Old-Age Assistance, Aid to the Blind, and Aid to the Permanently and Totally Disabled;    
  1974-2002 refers to Supplemental Security Income.                                                             
\3\ Data not available.                                                                                         
\4\ Additional administrative costs are reflected for the SSI Program share of the President's disability       
  investment in fiscal years 1994-95, the automation investment in fiscal years 1994-2002, and capital budgeting
  in fiscal years 1999-2002.                                                                                    
\5\ Fiscal year 1995 administrative expenses included funds to pay back the OASI Trust Fund with interest for   
  SSI administrative funding shortfalls in prior years.                                                         
\6\ SSA does not collect the information necessary for making a forecast of State-administered benefit payments.
  For 1997-2002, data are projections based on the President's budget estimates of February 1997.               
                                                                                                                
 NA--Not available.                                                                                             
                                                                                                                
Source: Office of Budget, Social Security Administration.                                                       

                          LEGISLATIVE HISTORY

             Legislative Changes Made in the 103d Congress

1993

    Public Law 103-66, the Omnibus Budget Reconciliation Act of 
1993, required the DHHS Secretary to charge States fees for the 
Federal cost of administering SSI supplementary payments. The 
fees started at $1.67 for each monthly supplementary payment in 
fiscal year 1994, increasing to $3.33 in fiscal year 1995, and 
to $5 in fiscal year 1996. The fee in subsequent years would be 
$5 or an amount determined by the DHHS Secretary. It 
permanently excluded from consideration as income or resources 
any State or local relocation assistance received by SSI 
recipients, prevented SSI benefits from declining when the 
spouse or parent of a recipient was absent from home solely 
because of active military service (certain hazardous duty pay 
was also excluded from income), and required that children who 
were U.S. citizens would remain eligible for SSI when they 
accompanied their parents on U.S. military assignments to 
Puerto Rico or to U.S. territories and possessions (previous 
law continued payments only if the parents were on military 
assignments in foreign countries).
    In addition, to eliminate the unintended SSI benefit 
increase for January and February following a cost-of-living 
adjustment and the offsetting reduction for March (i.e., the 2-
month retrospective benefit calculation rule), Public Law 103-
66 required that the benefit reduction for in-kind support and 
maintenance (generally one-third of the Federal SSI benefit 
standard plus $20 monthly) be based on the existing month's 
benefits. Public Law 103-66 also disregarded from income up to 
$2,000 received by American Indians that came from leases on 
individually owned trust or restricted American Indian lands 
(previously only income received by American Indians from 
tribally owned trust lands had been excluded as income).

1994

    Public Law 103-296, the Social Security Independence and 
Program Improvements Act of 1994, made numerous changes to the 
SSI Program. In addition to establishing SSA as an independent 
agency with responsibility for both OASDI and SSI, it included 
the provisions discussed below.
    Restrictions on benefits based on disability for substance 
abusers.--Places restrictions on SSI disability insurance 
payments to individuals disabled by drug addiction and 
alcoholism (DAA) and establishes barriers against a 
beneficiary's using SSI benefits to support an addiction.
    Payment limitation.--Limits the payment of SSI benefits to 
36 months for individuals whose substance abuse is material to 
their disability, beginning with the first month for which 
treatment is available. This restriction sunsets October 1, 
2004. Medicare, Medicaid, and dependent's benefits will 
continue as long as the terminated beneficiary continues to be 
disabled and otherwise eligible (i.e., except for the 36-month 
limit). The payment limit will not apply to individuals who are 
disabled independent of the alcoholism or drug addiction at the 
close of the 36-month period.
    Suspension for noncompliance.--Provides for suspending 
benefits for noncompliance with treatment for substance 
abusers, beginning the month after SSA sends notification of 
noncompliance. Once benefits are suspended for noncompliance, 
they may be reinstated only after demonstrated compliance with 
treatment requirements for specified periods--a minimum of 2 
months, 3 months, and 6 months, respectively, for the first, 
second, third and additional instances of noncompliance. 
Suspension of benefits for 12 consecutive months will result in 
termination of benefits.
    Referral and monitoring.--Requires the establishment of 
referral and monitoring agency contracts in each State and 
issuance of regulations defining appropriate treatment for 
substance abusers.
    Retroactive benefits.--Requires gradual payment of 
retroactive disability benefits to substance abusers, except 
for beneficiaries who have outstanding debts related to housing 
and are at high risk of homelessness. Retroactive benefits due 
to an individual whose entitlement terminates will continue in 
prorated amounts until they are fully paid. In addition, if a 
beneficiary dies without having received all retroactive 
benefits, the unpaid amount becomes an underpayment.
    Representative payment.--Requires SSA to give preference to 
the appointment of social service agencies or to Federal, 
State, or local government agencies as representative payees 
for individuals disabled due to substance abuse, unless SSA 
determines that a family member would be a more appropriate 
payee.
    Permits organizations that serve as representative payees 
for substances abusers to retain, as compensation for their 
services, the lesser of 10 percent of the monthly benefit or 
$50, indexed to the CPI. Also indexes to the CPI the maximum 
payee service fee ($25) for other beneficiaries with a 
qualified organizational payee.
    Studies and reports.--Requires the following studies and 
reports:
    A study of (1) the feasibility, cost and equity of 
requiring representative payees for all disability 
beneficiaries who suffer from drug addiction or alcoholism, 
regardless of whether their addiction is material to their 
addiction; (2) the feasibility, cost and equity of providing 
noncash benefits; and (3) the extent of substance abuse among 
child recipients and their representative payees. A report on 
the studies is due by December 31, 1995.
    A report on the Secretary's activities relating to the 
monitoring and testing of disability beneficiaries. The report 
is due by December 1, 1996.
    Demonstration projects designed to explore innovative 
referral, monitoring, and treatment approaches with respect to 
disability beneficiaries who are subject to a treatment 
requirement. A report on these projects is due by December 31, 
1997.
    Continuing disability reviews (CDRs) for SSI recipients.--
Requires SSA, in each of the fiscal years 1996, 1997, and 1998, 
to perform CDRs for a minimum of 100,000 SSI recipients and 
one-third of all childhood SSI recipients who are between age 
18 and 19. The latter provision applies to individuals who 
attain age 18 in or after the ninth month after enactment. 
Requires SSA to report its findings no later than October 1, 
1998.
    SSI eligibility for students temporarily abroad.--Allows 
individuals who leave the United States temporarily as part of 
an educational program that is not available in the United 
States, that is designed for gainful employment, and that is 
sponsored by a school in the United States to continue 
receiving SSI benefits for up to 1 year if they were eligible 
for SSI the month they left the country.
    Disregard of cost-of-living increases for continued 
eligibility for work incentives.--Continues Medicaid under 
section 1619(b) for an individual whose Social Security cost-
of-living increase otherwise would make them ineligible because 
of excess unearned income.
    Provisions to combat SSI Program fraud.--Strengthens 
present law in deterring fraud and abuse in the SSI Programs 
by:
 1. Requiring that third-party translators certify under oath 
        the accuracy of their translations, whether they are 
        acting as the applicant's legal representative, and 
        their relationship to the applicant.
 2. Authorizing civil penalties to be imposed against third 
        parties, medical professionals, and SSI recipients who 
        engage in fraudulent schemes to enroll ineligible 
        individuals in the SSI Program. In addition, medical 
        professionals may be barred from participation in 
        Medicare and Medicaid.
 3. Treating SSI fraud as a felony.
 4. Clarifying SSA's authority to reopen SSI cases where there 
        is reason to believe that an application or supporting 
        documents are fraudulent, and to terminate benefits 
        expeditiously in cases where SSA determines that there 
        is insufficient reliable evidence of disability.
 5. Requiring the Inspector General to immediately notify SSA 
        about SSI cases under investigation for fraud, and 
        requiring SSA to immediately reopen such cases where 
        there is reason to believe that an application or 
        supporting documents are fraudulent, unless the U.S. 
        Attorney or equivalent State prosecutor determines that 
        doing so would jeopardize criminal prosecution of the 
        parties involved.
 6. Requiring SSA to obtain and utilize, to the extent it is 
        useful, preadmission immigrant and refugee medical 
        information, identification information, and employment 
        history compiled by the Immigration and Naturalization 
        Service or the Centers for Disease Control when 
        developing SSI claims for aliens.
 7. Requiring SSA to submit an annual report to the House 
        Committee on Ways and Means and the Senate Committee on 
        Finance on the extent to which it has reviewed SSI 
        cases, including the extent to which the cases reviewed 
        involved a high likelihood of probability of fraud.
    Exemption from adjustment in pass along requirements.--
Allows States the option of exempting Zebley-related 
retroactive State supplementary payments from the annual 
supplementary payments expenditure amount that a State must 
maintain in the following year in order to meet the pass along 
requirement.
    Nursing home notification.--Requires nursing homes to 
notify SSA within 2 weeks after they admit SSI recipients.
    Public Law 103-432, the Social Security Act Amendments of 
1994, replaced the words ``children under age 18'' with 
``individuals under age 18'' with respect to the disability 
definition. The purpose of this provision was to enable all 
persons under age 18 to be evaluated under the childhood 
disabilities criteria. Under previous law a person who was 
married or the head of a household was not considered a child 
for SSI purposes even though he or she was under age 18.

             Legislative Changes Made in the 104th Congress

1996

    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 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. 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 on a priority 
basis 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 (DI) continuing disability 
reviews (CDRs) and Supplemental Security Income (SSI) 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 
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.--
PRWORA 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.--For 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.--
Affidavits of support are made legally enforceable against the 
sponsor until the noncitizen becomes a U.S. citizen, and 
requires the agency that provides assistance to a noncitizen to 
request reimbursement from the sponsor for assistance provided. 
Also requires that all newly-signed affidavits be legally 
enforceable.
    Reporting of illegal immigrants to the Immigration and 
Naturalization Service (INS).--The Commissioner of Social 
Security must furnish to the INS the name, address, and other 
identifying information of any individual that SSA knows is 
unlawfully in the United States.
    SSI eligibility based on childhood disability.--The 
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 (SSA) 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 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.
    Continuing disability reviews (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 the 
recipient turns 18.
    Funding.--PRWORA 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 reporting.--The 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.--An 
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.--PRWORA 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.--A 
schedule for paying large retroactive SSI benefit amounts at 6-
month intervals is established.
    Dedicated savings accounts.--PRWORA 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 who are 
battered or abused, or if their children 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.
    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.''

             Legislative Changes Made in the 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.--Public Law 105-33 provides 
that, despite restrictions in the 1996 welfare reform law, 
noncitizens lawfully residing in the United States who received 
SSI on August 22, 1996, would remain eligible for SSI. In 
addition, noncitizens lawfully residing in the United States on 
August 22, 1996, would be eligible for SSI if they become 
disabled in the future. It also provides that members of Native 
American Indian tribes who are noncitizens would not be 
affected by the SSI restrictions in Public Law 104-193. In 
addition, individuals who received SSI prior to January 1, 
1979, would 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.--
Public 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,'' 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 
benefits.--Public 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.
    Exemption from noncitizen restrictions on SSI Program 
participation by certain recipients eligible on the basis of 
very old applications.--Public 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 
payments.--Public 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 
payments.--In 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.
    In addition, 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.--The 
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 drug 
addiction or alcoholism condition.
    Technical corrections also are made 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 and clarify when the reporting incentives involving 
prisoners apply. 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.

                               REFERENCES

Louis W. Sullivan, Secretary of Health and Human Services, 
        petitioner, v. Brian Zebley, et al., No. 88-1377 (U.S. 
        Filed February 20, 1990).
National Academy of Social Insurance. (1995). Restructuring the 
        SSI disability program for children and adolescents. 
        Washington, DC: Author.
Social Security Administration. (1995 and various years). 
        Annual statistical supplement to the Social Security 
        Bulletin, 1995 (SSA Pub. No. 13-11700). Washington, DC: 
        Author. [Earlier years of this annual publication were 
        used in preparing various tables for this chapter.]
Social Security Administration. (1995, October). Supplemental 
        Security Income for Children with Disabilities (Report 
        to Congress of the National Commission on Childhood 
        Disability). Washington, DC: Author.
U.S. General Accounting Office. (1995, July). Supplemental 
        security income: Growth and changes in recipient 
        population call for reexamining program (GAO/HEHS 95-
        137). Washington, DC: Author.
U.S. House of Representatives, Committee on Ways and Means. 
        (1971, May 26). Social Security Amendments of 1971 
        (House Report No. 92-231). Washington, DC: U.S. 
        Government Printing Office.
U.S. Senate, Committee on Finance. (1972, Sept. 26). Social 
        Security amendments of 1972 (Senate Report No. 92-
        1230). Washington, DC: U.S. Government Printing Office.