5.4 Social Welfare Programs
Following the Great Depression (1929–1939), the United States developed its first programs meant to combat and prevent poverty. The programs discussed in this section fall under the category of social welfare or public assistance. This group of programs is meant to alleviate the effects of poverty, and applicants must pass a means test in order to receive benefits. The benefit levels are determined by factors within each individual case and depend on the program.
Supplemental Security Income
Supplemental Security Income (SSI) is a federal program that serves low-income Americans who are over the age of 65, blind, and/or have a disability. It is funded by general tax revenues rather than Social Security payroll taxes. The benefits provided under SSI are intended to help recipients pay for food, clothing, and shelter—the basic necessities (Social Security Administration, 2015a). The income level at which one qualifies is the same nationwide. Although it is a federal program, some states supplement the payments made to recipients (Social Security Administration, 2009). The maximum federal benefit payment in 2022 for SSI was $1,261 for an eligible couple and $841 for an eligible individual (Social Security Administration, 2022).
Medicaid
Established as an addition to the Social Security Act in 1965 under President Lyndon B. Johnson, Medicaid came into existence simultaneously with Medicare. People often get the names of these programs confused with each other; an easy way to remember the difference is to say “Medicaid is public aid.” That is, Medicaid is health insurance available for the poor. Along with the Children’s Health Insurance Program (CHIP), Medicaid provides insurance to 72.2 million Americans who might otherwise not be able to afford doctor’s visits, emergency room visits, hospital stays, or medications (U.S. Department of Health and Human Services, 2021). Medicaid is funded through a combination of state and federal monies and is administered entirely by the states (Cox et al., 2016; Matthews, 2015). States had the option to expand Medicaid with federal funds designated by the Affordable Care Act; 39 states had done so as of 2022 (Kaiser Family Foundation, 2022).
Housing Choice Voucher Program
Commonly known as Section 8, the housing choice voucher program provides funding assistance to low-income families looking to obtain housing. There are four main kinds of vouchers: a Section 8 Project-Based voucher, Section 8 Housing Choice voucher, Section 202 Housing for the Elderly, and Section 811 Housing for Persons with Identified Disabilities, a voucher that can be used anywhere in the housing market.
To receive any kind of voucher, an applicant must qualify through the completion of a means application process. Different housing authorities have different income maximums for people to be eligible to receive assistance in these programs. The income limits for these programs are updated on an annual basis. For exa