We should be reforming SSDI and SSI immensely. Both are severely abused and amount to at least 25% or more of SS expenditures. SSDI comes completely out of SS funds and SSA administers SSI which is paid from the general fund.
As it is now, SSDI is used mostly as an early SS retirment and SSI is nothing more than federal welfare.
SSDI comes completely out of SS funds and SSA administers SSI which is paid from the general fund.
According to the Social Security Administration:
SSDI - Social Security Disability - is paid out of the Disability Insurance Trust Fund (created in 1957).
SSDI benefits are paid to workers for temporary and permanent disabilities. A worker must have accrued enough work credits to qualify. A full benefit amount for an individual is based on what their social security amount would be at FRA - full retirement age. If someone is determined to be 100% permanently disabled at 50 years old, their monthly benefit will generally be the amount calculated to be their full retirement benefit. Those statements we all get from SSA show the numbers.
SSI - Supplemental Security Income - is paid out of the General Fund.
* you are 65 or older, blind or disabled;
* you are a U.S. citizen or lawful resident;
* and you have very limited income and financial resources.
In 2023, the SSI standard for limited income is income of up to $914 a month for an individual or $1,371 a month for a couple.
Regular Social Security is paid out of the OASI Trust Fund: Old-Age and Survivors Insurance.
I recall reading a few years back that the DITF has historically been more solvent than the OASI Trust Fund. Not sure if that’s still the case.