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Life after welfare reform

Brief history

On August 22, 1996, President Clinton signed into law the Personal Responsibility and Work Opportunity Reconciliation Act, a welfare reform law that established the Temporary Assistance for Needy Families (TANF) program (TANF replaced the government's Aid to Families with Dependent Children [AFDC] program). Under this legislation, states are now responsible for implementing their own welfare programs to assist welfare recipients. However, the federal government has provisions for states related to moving families into work and self-sufficiency.

Some of the provisions:

—A lifetime limit of five years on receiving Aid to Families with Dependent Children.

—Requires an able-bodied adult to work after two years of receiving welfare assistance.

—Gives the states block grants to run the programs and lets them set many of the rules, such as terminating benefits sooner than five years.

—Requires that states require 90 percent of two-parent households receiving welfare to have jobs or be enrolled in job-readiness programs by 1999.

—Empowers states to cut Medicaid coverage to adults who lose welfare benefits through not going to work within two years.

—Requires that people ages 18 to 50 without children--including people laid off from jobs—work to be eligible for food stamps.

—Denies most federal benefits to noncitizens, even those here legally, on the assumption that their sponsors arranged work for them.

—Reduces Supplemental Security Income assistance to handicapped children.

 

Statistics and commentary

"We know welfare caseloads are dropping. We don't have precise data on where everyone is going." —U.S. Secretary Alexis Herman, speaking at the National Press Club, February 17, 1998

Between August 1996 and February 1988 2.4 million people have left the welfare rolls.—U.S. Secretary Alexis Herman, speaking at the National Press Club, February 17, 1998

Forty-six out of 50 states have seen their caseloads of welfare recipients decline in the last four years. Thirty states have dropped by more than 25 percent.—U.S. Department of Health and Human Services Administration for Children and Families, April 1997

A Community Food Resource Center study of New York City's Work Experience Program estimated that just one-tenth of one percent of participants had found permanent employment directly after leaving the program.—In These Times, December 14, 1997

New York City, which claimed that 18 percent of Work Experience Program participants found jobs, turned out to have been counting people whose cases had been closed for missing an appointment as "successfully placed in employment."—In These Times, December 14, 1997

The only national welfare-reform study to date, released by the federal Council of Economic Advisers in May 1997, said a 44 percent decrease in caseloads was due to an improved economy.—In These Times, December 14, 1997

Two-thirds of new jobs are in the suburbs but 3 out of 4 welfare recipients live in rural areas or central cities. —U.S. Secretary Alexis Herman, speaking at the National Press Club, February 17, 1998

Eighty-four percent of New York City soup kitchens and food pantries report increased demand for services since welfare reform has gone into effect. And in Milwaukee the number of families in homeless shelters during the winter of 1996 was up 25 percent from the previous winter.--In These Times, December 14, 1997

The Government Accounting Office reports that in the three states with the most welfare terminations (Iowa, Massachusetts, and Wisconsin), many families lost their only income.HandsNet, Welfare Law Center

Fewer than expected families received Medicaid and Food Stamps after welfare termination because administrative errors led to incorrect cut-offs and states had trouble providing necessary services to families.HandsNet, Welfare Law Center

Forty-seven percent of welfare recipients had no job when they were terminated. Forty-three percent who had a job when they were terminated only had part-time work. And two-thirds received Food Stamps and/or Medicaid while they were ineligible for cash aid.HandsNet, Welfare Law Center

Families reported an increase in relying on family members, neighbors, and friends for emotional, financial, and child care help.HandsNet, Welfare Law Center

Those terminated without the support of families and friends rely heavily on community services such as food pantries.HandsNet, Welfare Law Center

One-third of families terminated in Iowa, Massachusetts, and Wisconsin returned to welfare when they complied with welfare policies or had a case management error corrected.HandsNet, Welfare Law Center

Most welfare terminations nationwide were for failure to meet enrollment requirements, such as the requirement to appear and sign up for a work program. And fewer than one-third of terminated families report earnings after termination.HandsNet, Welfare Law Center

Profile of TANF recipients | More about welfare

 

Other welfare resources:

The Employment and Training Administration: A division of the U.S. Department of Labor, the ETA has posted a general profile of the welfare population.

Social Security Welfare Reform Information: Posted here is the Social Security Administration's review of cases of children who had SSI Disability benefits revoked. The agency's guidelines are also provided.

The Welfare to Work Partnership: This nonpartisan, nationwide organization has developed this Web site to assist and encourage private sector businesses with hiring people on public assistance.

The National Alliance of Business: Contained within this page are the U.S. Labor Department's welfare-to-work program guidelines.

Goodwill Industries International: This site provides information on how welfare recipients with disabilities and other special needs can acquire the skills needed to enter the work force.

HandsNet: The site provides extensive coverage of current welfare reform efforts at the national, state, and local level. You'll find analysis and fact sheets on the latest welfare legislation.

The Administration For Children and Families: A division of the Department of Health and Human Services, the Administration's Web page provides a database of welfare and welfare-to-work news.

Idea Central: This is an online magazine put out by the Electric Policy Network. It has an array of articles and links pertaining to welfare and families.

American Public Welfare Association: A nonprofit, bipartisan organization concerned with educating the public with what's happening with welfare, child welfare, health care reform, and other issues involving family and the elderly.

The Welfare Information Network: This page provides information on welfare reform including policy analysis and technical assistance.

The Employment and Training Administration: A division of the U.S. Department of Labor, the ETA provides a directory of welfare-to-work services and provides information on how welfare-to-work programs are taking shape.

U.S. Census Bureau: The Web site provides statistics on poverty in the U.S. and information on the nation's income, poverty, and health insurance coverage. Plus Health and Human Services 1998 poverty guidelines.

Institute Research on Poverty: The site reports on research done on the causes and consequences of poverty and social inequality in the U.S.

Joint Center For Poverty Research: Posted here is poverty research news from researchers at Northwestern University and the University of Chicago on what what it means to be poor and live in America.

Health Care Financing Administration: The federal agency that administers the Medicare, Medicaid, and Child Health Insurance programs with specific information on welfare reform and how it pertains to Medicaid.

HUD's Welfare Reform Page
: Here is posted poverty research news from researchers at Northwestern University and the University of Chicago on what what it means to be poor and live in America.

The White House on Welfare Reform: This page exists to assist the public in understanding the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. It also provides access to available federal information.

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