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A Decade of Welfare Reform: Facts and Figures |
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The passage of welfare reform law in August 1996 signaled the end of "welfare as we know it." The legislation transformed Aid to Families with Dependent Children (AFDC) into the Temporary Assistance for Needy Families (TANF) program, dramatically changing the nation's approach to supporting needy families with children. Reform was intended to end dependence on government cash assistance by promoting job preparation and work. Benefits now carry a time limit and most recipients must meet work activity requirements. The 1996 law gave states new flexibility to implement their welfare programs, while creating incentives to encourage work and the formation of two-parent families and penalties to reduce out-of-wedlock childbearing. It also changed numerous other safety net programs, such as child care and child support. During the period just before and just after welfare reform, other federal programs that affect the work and earnings of low-income families were enacted or modified as well, including the Earned Income Tax Credit (EITC), food stamps, and Medicaid. Given these changes and a robust economy in the mid-1990s, many recipients left welfare and went to work or combined welfare benefits with paid work. This transition from welfare to work brought new challenges for families faced with low wages and few benefits. The first decade of the landmark welfare reform legislation is examined here through the experiences of low-income families.
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