OAA Availability Expands, Federal Share Increases
Couple Receiving Old Age Pension, Penfield, GA, 1941Library of Congress: America from the Great Depression to World War II Black-and-White Photographs from the FSA-OWI, 1935-1945
A number of amendments to the Social Security Act increased both the cap on Old Age Assistance payments and the percentage of OAA that was paid for by the federal government. The cap on the total combined payment that was eligible for a federal match increased from $30 a month to $50 a month, and the maximum federal share of the payment increased from 50% to 60% from 1936 to 1948. (Advisory Council Report, 1948)
| Year | Cap on Total Combined Payment | Federal Share of Payment |
|---|---|---|
| 1936 | $30 | 50% |
| 1939 | $40 | 50% |
| 1946 | $45 | 2/3 of first $15, 1/2 of remainder (56% on maximum benefit) |
| 1948 | $50 | 3/4 of first $20, 1/2 of remainder (60% on maximum benefit) |
The states welcomed the opportunity to share public assistance costs with the federal government and quickly jumped into the program. By 1940, every state had set up an Old Age Assistance program, and coverage increased until 22% of the age 65+ population were receiving OAA benefits averaging about $20 a month in 1940, where utilization leveled off. Somewhere between 2,000,000 and 2,200,000 people received OAA each year throughout the 1940's, representing about 23% of the age 65+ population by 1950.