The Brookings Institution, Washington, D'C'www'brookings'edu

1
Overview of the1996 Welfare Reform Law

• Temporary Assistance for Needy Families Program
• Reduction of Non-marital Births
• Supplemental Security Income for Children
• Child Support Enforcement
• Welfare for Non-citizens
• Child Care

2
Overview of Temporary Assistance for Needy
Families Program

• Elimination of cash welfare entitlement
• Block grant funding
• Work participation standards
• Sanctions
• 5-year time limit

3
Provisions in Welfare Reform LawDesigned to
Fight Illegitimacy

• Congressional findings on the negative effects of
  nonmarital births
• Creation of Temporary Assistance for Needy
  Families Block Grant
• TANF purpose to prevent and reduce
  out-of-wedlock pregnancies
• Performance Bonus, including prevention of
  nonmarital births
• Illegitimacy reduction bonus
• Require teens to attend school
• Require teens to live at home or in other
  adult-supervised setting
• Abstinence education
• Child support enforcement
• Paternity establishment
• National goals to prevent teen pregnancy
• States establish numerical goals for illegitimacy
  reduction
• Annual ranking of states on nonmarital pregnancy
  rations by HHS
• Allow family cap
• Allow reduction in cash benefits

4
Results at Four Years

• Welfare-to-work (TANF)
• Reduction of nonmarital births
• Supplemental security income for children
• Child support enforcement
• Welfare for noncitizens
• Child care

5
AFDC/TANF Caseload, 1959-1999
6
Family Income fromWelfare vs. Low-Wage Work
7
Percentage of Married, Single,and Never-Married
Mothers Working, 1985-1999
8
Average Income of Female Family Heads with
Children in the Bottom Fifthof Post-Tax Income,
1993-99
Total Income

1993-1999 Source
of Income 1993 1999
in in Earnings 1,331
2,417 1,086 82 Cash Welfare
2,107 1,218 -
889 - 42 Food Stamps 1,276
988 - 288 - 23 Child
Support 253
365 112 44 EITC
209 716 507 243 Other
1,535 1,902
367 24 Total 6,711
7,606 895 13
9
Average Income of Female Family Heads with
Children in the Second Fifthof Post-Tax Income,
1993-99
Total Income

1993 - 99
Source of Income 1993
1999 in in Earnings
4,815 9,603 4,788
99 Cash Welfare 3,099
1,361 -1,738 - 56 Food Stamps
1,684 810 -
874 - 52 Child Support
446 540 94
21 EITC 678 1,973
1,295 191 Other
2,479 1,732 - 747 - 30
Total 13,201
16,019 2,818 21
10
Welfare Caseloads and Child Poverty Decline
Simultaneously,1995-1999
Year
1995 1996 1997 1998
1999
11
Decline in Child Poverty by Broad Definition,
1983-89 and 1993-99
35.5
20.0
21.3
18.0
15.5
12.9
1983 1989
1993 1999
1980s 1990s
Decline
Year
Source Bureau of the Census
12
Support for Working FamiliesIncreases
Dramatically between 1984 and 1999
Spending in 1999 under 1984 Law
1999 Law
Source Congressional Budget Office
13
Number of Births, Birthrate, and Percent of
Birthsto Unmarried Women United States, 1940-99
14
Teen Birthrate, 1980-1998
15
Number of Children Receiving SSI Benefits,
1985-2000
16
Child Support Collections Are Up
17
Number of Noncitizen Families in Selected Welfare
Programs, 1995 and 1999
Medicaid Food Stamps TANF
SSI
Program and Year
Source Urban Institute tabulations of current
population source data
18
Federal Spending on Child Care,1985-2000