Here's how benefits may change as one Social Security program celebrates its 50th anniversary.

• In 1974, the first Supplemental Security Income (SSI) payments were distributed.
• After half a century, the federal program has made progress, potentially enabling individuals to obtain and meet eligibility criteria for benefits.
• Congress may be poised to consider additional changes to SSI's strict rules.

The federal benefit program for disabled individuals and older adults has been distributing payments for 50 years.

In 1974, SSI started issuing monthly checks worth approximately $140 per person or $210 per couple.

In 2024, the maximum monthly benefit for eligible individuals is $943, while the average monthly benefit is approximately $698.

An individual living below the federal poverty level in 2024 would require a monthly income of approximately $1,255.

The program, with over 7 million beneficiaries who meet the eligibility criteria of low income or resources, could be improved to better serve its purpose as a financial aid when it was established by former President Richard Nixon in 1972.

Experts advise against waiting to claim Social Security benefits, while the Social Security Administration plans to expand access to certain benefits. Additionally, both a wealth transfer and retirement savings crisis are possible.

Beneficiaries of SSI must adhere to strict restrictions, including asset limits of $2,000 for individuals and $3,000 for couples, as well as income from work and other sources that may reduce the amount they receive from the program.

The burden of rules is not only felt by beneficiaries, but also by the Social Security Administration.

At a National Academy of Social Insurance event in Washington, D.C., Social Security Commissioner Martin O'Malley stated that although only 4% of our total benefits are distributed through Supplemental Security Income (SSI), it accounts for 38% of our administrative overhead and workload.

Updates aimed at improving benefit access

The Social Security Administration is making efforts to ease some of the limitations associated with SSI benefits.

The agency has made changes to its policies regarding unearned income and rental subsidies for SSI applicants and beneficiaries. Effective Sept. 30, food will no longer be counted as unearned income, and the rental subsidy policy and definition of a public assistance household will be expanded.

O'Malley stated that the rewritten sentence would make it easier for more individuals to qualify for SSI.

The agency has simplified the process for beneficiaries to request waivers for overpayments or excess benefits they may have received, and has increased the SSI underpayment threshold to $15,000 from $5,000, resolving backlogged cases.

Congress may implement more changes

Congress may further improve the program through additional reforms.

The Social Security Administration could reduce disability application approval and phone assistance wait times by increasing its operating overhead to its previous level, as suggested by O'Malley.

O'Malley stated that adding a single penny to the federal debt would not occur because the payment for it has already been made.

Experts suggest that increasing the SSI's asset thresholds, which have not been adjusted in approximately 40 years, could improve the financial security of beneficiaries.

Two bills in Congress have proposed significant SSI reforms.

The Supplemental Security Income Restoration Act, proposed by Democrats, aims to enhance the program by raising asset limits, establishing a minimum benefit of 100% of the federal poverty level, simplifying the application process, and eliminating specific reductions in benefits.

The SSI Savings Penalty Elimination Act is a bipartisan proposal that would increase asset limits to $10,000 per individual and $20,000 per couple, eliminating the marriage penalty faced by current beneficiaries.

The SSI Savings Penalty Elimination Act has gained significant support, as stated by Emerson Sprick, associate director at the Bipartisan Policy Center's Economic Policy Center, during the NASI event.

Whether Congress can attach the proposed changes to another legislative effort, such as spending, to pass it in the near future, was stated by him.

Broader updates needed, advocates say

Proponents argue that relaxing the existing guidelines of the program would result in significant positive outcomes.

Due to current limitations, SSI beneficiaries may not be able to contribute to a 401(k) or earn raises. Similarly, students may be hesitant to take a paid internship for fear that the income could impact their benefits, according to Rylin Rodgers, disability policy advisor at Microsoft.

Rodgers stated that in order to be successful, it is necessary to have disabled workers in all job types.

"SSI is currently at a critical juncture where it is hindering some individuals' talents," she stated.

The elderly and disabled individuals who receive both Social Security and SSI benefits may experience reductions in their payments. Relaxing the rules could help lift more people out of poverty, as suggested by Wendell Primus, a visiting fellow at Brookings and former senior policy advisor on health and budget issues to former House Speaker Nancy Pelosi, D-Calif.

Tracey Gronniger, managing director for the economic security team at Justice in Aging, an advocacy group for fighting senior poverty, suggested that SSI benefit amounts could be enhanced more broadly for all beneficiaries.

Gronniger stated that we must substantially enhance the benefit level to at least the pace of poverty.

By increasing SSI participation in underserved communities, particularly among people of color, the poverty rate can be reduced, she stated.

Jennifer Burdick, divisional supervising attorney at the SSI unit at Community Legal Services of Philadelphia, stated that although recent updates to food and housing policies will aid, there is still a need to update outdated policies that can hinder access to benefits.

Burdick stated that it would be ideal if Congress resolved the larger issues with the program, allowing them to focus on finding solutions to problems that Congress is not addressing.