The 1972 federal law establishing the SSI program included a resource limit as an eligibility factor for SSI benefits. Resources include any of the following owned by an SSI applicant, beneficiary, or spouse: cash, liquid assets, and real or personal property that can be converted to cash to obtain food and shelter. Resource limits are useful to ensure that public dollars go only to those who really need them. If income alone were used as a marker of need, then it would be possible for individuals and couples to receive SSI benefits as long as their income was below a certain level, regardless of the amount of their savings or other resources.
For SSI recipients, the ability to save more under a higher resource limit would provide added protection against hardships resulting from a drop in income or an increase in expenses. Low-income individuals and families are especially vulnerable to unexpected changes in income or expenses. Increasing the resource limit would change the incentives for participation in the program. The resource limit could induce people near the limit to change their behavior. The set resource limit should consider the interests of SSI beneficiaries in increased protection against hardships, the cost to taxpayers, and whether the change in the rules would encourage potential beneficiaries to reduce their work and savings. SSA should conduct or fund evidence-based research to determine an appropriate resource limit for SSI that would improve the welfare of all concerned.
The Statement is included in SSA’s 2011 Annual Report on the SSI Program. The Personal Responsibility and Work Opportunity Act of 1996 gives Board members the opportunity, individually or jointly, to include their views on SSI in SSA’s annual report to the President and Congress on the Supplemental Security Income (SSI) program. The Board or one of its members has submitted a statement every year since 1998, except for 2024 due to the lack of a quorum.