The Supplemental Security Income (SSI) program was started by President Richard Nixon. He signed the legislation for SSI as part of the Social Security Amendments of 1972, with payments beginning in January 1974.
Understanding SSI
SSI is a federal income supplement program designed to provide financial assistance to eligible aged, blind, and disabled individuals who have low income and limited resources. Unlike Social Security benefits, which are based on a person's prior work history and contributions to the Social Security trust funds, SSI is a needs-based program. It is funded by general tax revenues, not by Social Security taxes.
SSI vs. Social Security: A Key Distinction
It is crucial to differentiate SSI from the broader Social Security system, as they are distinct programs with different origins and funding mechanisms, although both are administered by the Social Security Administration.
The foundational Social Security Act of 1935 established the Social Security program, which provides retirement, disability, and survivors' insurance benefits. This landmark legislation, which became the law of the land, was signed by President Franklin Delano Roosevelt. The original Social Security Act created a social insurance system, where benefits are earned through work and payroll tax contributions. Decades later, the SSI program was created to address a different need: providing a basic income floor for the most vulnerable citizens who may not have sufficient work history to qualify for traditional Social Security benefits, or whose benefits are too low to meet basic needs.
Here's a quick comparison of these two vital programs:
| Feature | Supplemental Security Income (SSI) | Social Security (OASDI) |
|---|---|---|
| Started by | President Richard Nixon (1972) | President Franklin D. Roosevelt (1935) |
| Funding Source | General tax revenues | Dedicated payroll taxes (FICA) |
| Eligibility | Based on low income & limited resources (needs-based) | Based on work history & contributions (earned benefit) |
| Purpose | Provide minimum income for aged, blind, disabled poor | Social insurance for workers, retirees, families |
| Benefit Type | Federal cash assistance | Monthly insurance benefit |
Why the Distinction Matters
Understanding the origins and funding mechanisms of both SSI and Social Security helps to clarify their distinct roles in the nation's social safety net. While both aim to provide financial security, SSI specifically targets poverty among certain vulnerable populations, building upon the broader social welfare concepts established by the original Social Security Act.
