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Although financed partly by federal tax money, the states could still set their own eligibility requirements and benefit levels. This part of the law was pushed by Southern states so they could control the coverage made available to their African-American population.
This is how welfare began as a federal government responsibility...
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Roosevelt and the members of Congress who wrote the welfare provisions into the Social Security Act thought that the need for federal aid to dependent children and poor old people would gradually go away as employment improved and those over 65 began to collect Social Security pensions. But many Americans, such as farm laborers and domestic servants, were never included in the Social Security old-age retirement program...
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