Welfare Reform Archives - Talk Poverty https://talkpoverty.org/tag/welfare-reform/ Real People. Real Stories. Real Solutions. Fri, 16 Oct 2020 15:43:40 +0000 en-US hourly 1 https://cdn.talkpoverty.org/content/uploads/2016/02/29205224/tp-logo.png Welfare Reform Archives - Talk Poverty https://talkpoverty.org/tag/welfare-reform/ 32 32 New Jersey, Birthplace of Welfare Family Caps, Has Finally Repealed Them https://talkpoverty.org/2020/10/16/new-jersey-birthplace-welfare-family-caps-finally-repealed/ Fri, 16 Oct 2020 15:43:40 +0000 https://talkpoverty.org/?p=29816 Four years before President Bill Clinton signed legislation that he promised would “end welfare as we know it,” New Jersey started the process on its own. In 1992 it became the first state in the country to cut off additional cash welfare benefits for a family when they had a new child. Before the policy, a family would get an extra cash allotment to cover the needs of their new child. Afterward, if someone enrolled in the program had an additional child, they would receive no extra money.

It was explicitly enacted in an attempt to keep poor women, and particularly poor Black women, from having more children. “What this does is give welfare recipients a choice,” Wayne R. Bryant, the former New Jersey Democratic Assembly majority leader who came up with the policy, said in 1992. “They either can have additional children and work to pay the added costs, or they can decide not to have any more children.” He later bragged that the policy had led to an “astounding” drop in the birthrate among women on welfare. In advocating for the family cap, he described “123 blocks where there are no legitimate males” in his city of Camden, by which he meant “men who can rightfully take their place in that community,” thanks to the fact that welfare has taught “all the wrong values.” The family cap, meanwhile, “reinforced the ideas of self-responsibility and investment in the future.”

It’s a “terribly racist and classist and misogynistic policy,” said Jessica Bartholow, policy advocate at the Western Center on Law & Poverty. “It’s a poor baby penalty.”

But the policy quickly spread nationally after New Jersey enacted it. Republicans even included a pledge to “discourage illegitimacy and teen pregnancy by…denying increased [benefits] for additional children while on welfare” in their 1994 Contract for America, the precursor for welfare reform. The language never made it into the final version, but 22 states took the initiative to create family caps anyway.

As of September 30, New Jersey is no longer one of them.

“It’s huge. [New Jersey] is the mothership of the family cap rule,” Bartholow said. “It’s a beautiful day when the place that started it all can…reconcile what it’s done.” She noted that her state of California, which got rid of its cap in 2016, had originally followed New Jersey’s lead in creating one in the first place. “You have to wonder, what if [New Jersey] had never done it?” she said. “Would we have had it, would other states have had it?”

Despite Bryant’s early data, research in the decades since shows welfare family caps don’t work. There is no evidence that family caps influence how many children poor families have. It’s not even true that poor families receiving government benefits have huge families. In 1990, only 10 percent of households receiving cash benefits had more than three children. Today, they have an average of 1.8 children, the same as the average for the country as a whole. “The idea behind the law has been really debunked,” said Renee Koubiadis, executive director of the Anti-Poverty Network of New Jersey.

What family caps actually do is deprive families of the extra cash they need to cover expenses that aren’t covered by other programs, such as diapers, baby wipes, and car seats. This just increases their poverty. Koubiadis has heard stories, she said, of parents who only had one extra diaper for their baby for an entire day, and others who couldn’t go to work because they couldn’t afford the number of diapers required to send their children to daycare. Now a family of three that had a child excluded from extra benefits thanks to the cap stands to see an extra $134 a month, according to calculations by Brittany L. Holom, senior policy analyst at New Jersey Policy Perspective (NJPP).

The campaign to repeal the state’s cap launched in 2016 with a report from NJPP that found that more than 20,000 children had been denied assistance since the cap was enacted in 1992. “Those are 20,000 children who, in the eyes of the program, essentially didn’t exist,” Holom noted. Even in 2018, the cap lowered benefits for 1,235 families. It also disproportionately impacts families of color: About 80 percent of the state’s children on welfare are Black and Hispanic.

The 2016 analysis “really helped highlight those issues for legislators who hadn’t thought about this law…since it was enacted in 1992,” Koubiadis said.

The report was released just months before California repealed its family cap, and coincided with other state campaigns, such as in Massachusetts. As advocates in New Jersey fought to repeal their family cap, the movement gained support from religious groups who were concerned about the impact the policy has on children. Ron Haskins, a prominent Republican architect of welfare reform, has since said he would be “hesitant” to support a family cap today because it “creates hardships for families.”

But even with a growing movement, New Jersey’s repeal hit roadblock after roadblock. Legislation sailed through the state legislature, but Republican Governor Chris Christie vetoed it twice.

Then the state elected Democratic Governor Phil Murphy in 2018. In New Jersey’s last two budgets, the welfare cap was effectively eradicated when lawmakers included extra money to pay families the missing benefits for their additional children. Still, the cap itself remained on the books, meaning that lawmakers would have had to keep including that money each year to keep it from denying families money.

It’s a beautiful day when the place that started it all can reconcile what it’s done.

The coronavirus crisis, however, focused attention on the need to get rid of the cap once and for all. “There was a focus on other issues in the last couple of years, up until the pandemic,” Koubiadis said. But “with the exacerbation of these inequities, and certainly racial inequalities, legislators as a whole recognized that this was the moment to repeal this.” With the law no longer on the books, the extra assistance for poor families will be automatically included in each year’s budget.

“The tide certainly has been turning, especially in the last five to ten years,” Koubiadis said. “Other states certainly should take a look at repealing this law as well.” Holom noted this is particularly true for other nearby states, such as Connecticut, that still have a cap now that New Jersey and Massachusetts have done away with theirs.

The fact that “it has been undone in the place where it began will spread across the country and inspire the remaining states,” Bartholow said, “to finally end their use of this very flawed intervention.” She’s heard from people who are interested in doing the same in Tennessee and Virginia.

Perhaps, she suggested, Congress could even consider legislating it out of existence, barring states from having this policy at all. Congress might even go so far as to reconsider the other parts of the current welfare program that similarly punish poor people who need assistance, such as time limits that kick them off after a certain number of years, work requirements that deny benefits unless someone completes frequent paperwork proving they are either working or looking for a job, and pursuing children’s parents for child support money to pay back the benefits.

“These are really disgusting ways to think about a safety net,” Bartholow said. “I hope it can also inspire people to think about what else we have [done] wrong.”

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The House Farm Bill Doubles Down on TANF’s Mistakes https://talkpoverty.org/2018/05/03/house-farm-bill-doubles-tanfs-mistakes/ Thu, 03 May 2018 14:07:54 +0000 https://talkpoverty.org/?p=25686 Even when I was a single mother facing homelessness, applying to receive cash assistance from the state never felt like a feasible option.

Temporary Assistance for Needy Families (TANF) goes by many names depending on the state where you’re applying for services, but the basics are the same: Recipients are assigned caseworkers and they report their progress—as often as weekly—to show that they are participating in approved work-related activities for the required number of hours. TANF means constant check-ins and a complete loss of autonomy in any chosen career path for little in return. Cash assistance amounts are detrimentally low—sometimes less than $200 a month.

In the new Farm Bill proposed by Rep. Mike Conaway (R-TX), Chairman of the House Committee on Agriculture, Conaway’s mission is to change the Supplemental Nutrition Assistance Program (SNAP, more commonly known as food stamps) to mirror the TANF program. Congressional Democrats adamantly argued against making such changes, which would reduce the number of people who can get the food assistance they need.

Conaway’s Farm Bill would make SNAP’s current work requirements even harsher. Nearly any non-disabled adult under age 60 who isn’t able to work 20 hours every week would only receive benefits for three months every three years. If they’re raising a child age 6 or older, they would still be subject to the new rules. If they’re unemployed or working a job that isn’t assigning them enough hours, tough luck. Much like TANF, people would need to check in monthly or risk losing their food benefits for 12 months for their first “failure to comply,” and 36 months for their second. Rep. Sean Maloney (D-NY) says that that this policy is simply “a backdoor way to kick people off the program.”

Agriculture Committee Ranking Member Collin Peterson (D-MN) argued against the changes several times in the committee’s nearly six-hour meeting on the bill. “You need to understand what you’re doing,” he pleaded. “When we put the work requirements into TANF and SNAP, one of the biggest problems is lack of flexibility.”

When I applied for TANF in 2007, I had to attend work preparation classes that were several hours long. Even though I’d worked full-time for more than 10 years, I had to learn how to write a resume, how to go online and look for jobs, and I was told I should consider a career as a secretary or a baker. I had to mark these career paths on a sheet, and tell my caseworker my plan to pursue those fields, even though that wasn’t my interest. Higher education, even at the local community college, wasn’t an option. All of this seemed for show, and a waste of everyone’s time, since I was a month away from giving birth to my first child and determined to be a writer.

TANF’s maze of paperwork is so incredibly difficult to work through that many people, like me, are discouraged before they even begin

Seven years later, as a possible TANF applicant again, I now had a bachelor’s degree. I’d still have to attend those same classes, but with the added stress of finding a child care facility that would accept TANF’s payments for my daughter to attend. Midway through reading the thick packet of paperwork my caseworker had mailed me to apply, I called to ask how much money I’d receive each month as a family of three. “Probably about 80 dollars more than your child support,” she said with a sigh. “It’s probably not even worth it for you to apply.” (If a custodial parent is already receiving a monthly amount in child support, the state reroutes the payments to the agency, and pays the participant directly instead.)

“Okay,” I told my caseworker, tucking the papers back into the manila envelope before I tossed it into the trash. I was not only a qualified applicant, but one the program was supposed to help. Yet TANF’s maze of paperwork is so incredibly difficult to work through that many people, like me, are discouraged before they even begin.

House Democrats voiced their concerns that Conaway’s Farm Bill would similarly overburden SNAP recipients and program administrators if it switched to running as a work program instead of a food program. The amount of paperwork that people would be required to file on a monthly basis—and that caseworkers would need to process—would require new systems, new employees, and training. While House Democrats argued that more than 2 million people would be kicked off SNAP or have their benefits reduced, and 265,000 kids would consequently lose automatic access to free meals at school, that wouldn’t be the end of the suffering—the travesty would continue as more people would lose benefits due to misplaced paperwork or being unable to meet a new work requirement due to a lack of transportation, or child care, or caring for a family member, or any number of reasons.

“States will be unable to provide the services expected of them. And rather than take on the cost of serving their clients … it’s very likely states will take the steps to cut them off all together,” says Rep. Marcia Fudge (D-OH).

Despite reports that more than half of households receiving SNAP are working households—a number that jumps to 80 percent in the years before and after qualifying for food benefits— Conaway wants to force recipients to provide proof that they are worthy of getting help with food. That they are, essentially, “legitimately poor.”

Fudge argued that a better approach would be to raise the minimum wage, noting that cafeteria employees in the building where the committee met that day made less than $2,000 a month, and therefore qualified for SNAP. “In fact,” she added, “raising the minimum wage to just $12 an hour would save about $53 billion in SNAP over 10 years.”

House Republicans on the committee didn’t seem to want to hear that side of the argument, though. Instead, by turning SNAP into a program like TANF, the amount of people able to get food assistance would dwindle. One can only assume that perhaps that’s the whole point.

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Congressional Republicans Met in the Second Poorest State to Plot How to Hurt Poor People https://talkpoverty.org/2018/02/09/congressional-republicans-met-second-poorest-state-plot-hurt-poor-people/ Fri, 09 Feb 2018 17:14:47 +0000 https://talkpoverty.org/?p=25168 Sammi Brown grew up in Charles Town, West Virginia. Raised in what she describes as a “barely 2-bedroom” apartment, she watched as both of her parents worked two, sometimes three jobs to put food on the table for her. “My dad worked second and third shifts so that he could walk me to the bus stop and be there when I got home,” she told TalkPoverty. “My mom worked multiple jobs … that’s kind of where I get my work ethic from.”

Brown became an organizer after seeing how challenging it was for her parents to provide basic necessities like food, housing, and health care when she was growing up. As a result, they often turned to programs like Medicaid and food assistance. “Eventually we did get off of those programs. We didn’t need them for my whole lifetime, but we were very much a working-class family,” she said.

I spoke with Brown just outside The Greenbrier, a tony luxury resort in the Allegheny Mountains, where weekend rates typically range from $358.00 to $628.00. At the time, it was playing host to nearly 300 Congressional Republican lawmakers, along with Vice President Mike Pence and President Donald Trump, who were all gathered for an annual policy retreat. Brown was one of the lead organizers for a protest—helping to bring in more than 500 activists, union members, and storytellers from across the country.

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Sammi Brown

Dominating discussions this year were cuts to a wide range of health, food, and housing programs—the very programs Brown turned to as a child—all in the name of “welfare reform.” Despite resistance from Senate Republicans, House Speaker Paul Ryan and the hard-right Republican Study Committee were making a Sisyphean effort to build support for a wide range of cuts this year—starting with Medicaid.

According to reports from the retreat, it all came down to messaging. “You’ve got to get the framing or the phrasing right,” Republican Study Committee Chairman Mark Walker told Politico. “When we talk about ‘Medicaid reform,’ that’s not a great buzz phrase.” Lost on Walker was the fact that the cuts themselves are unpopular, not just the salesmanship.

It was ironic that the House and Senate Republican conferences chose this site for a conversation dedicated to slashing the safety net. West Virginia has the second lowest per capita income in the country. More citizens turn to Medicaid, Social Security, and food assistance than virtually anywhere else in the country.

Fatal drug overdoses in West Virginia dwarf every other state in the country

More than 500,000 West Virginians—nearly a third of the population—get health insurance through Medicaid, making it the state with the highest share of its population covered by the program. This includes the majority of all children in the state and more than three-fourths of nursing home residents. Congress’ proposed repeal of the Affordable Care Act, for example, would have taken away Medicaid coverage from 227,000 West Virginians by 2029—equivalent to nearly half of those currently receiving Medicaid in the state.

The state has also been ravaged by the opioid epidemic. Fatal drug overdoses in West Virginia dwarf every other state in the country. In 2016 alone, 818 people lost their lives to drug overdoses—a 400 percent increase from 2001. Nearly 9 in 10 involved at least one opioid. And, according to a report released days ahead of the retreat, drug wholesalers flooded one West Virginia town with more than 20.8 million prescription painkillers between 2008 and 2015. Nationwide, Medicaid covers about a quarter of all substance abuse treatment. But it is particularly critical in West Virginia. Medicaid covers up to 45 percent of medication-assisted treatment for opioid misuse in the state.

*              *              *

Local rallies have become almost commonplace in Trump’s America. Indivisible, for example, now counts more than 5,800 local groups (at least 2 in every Congressional district), many of whom hold local actions and confront members of Congress on a regular basis. Still, it’s rare to gather so many activists from across the country in a single place. But something about the topic of this year’s retreat drew a crowd.

David Stauffer travelled from Waynesburg, Pennsylvania—a working-class town about an hour south of Pittsburgh. His grandfather, father, and uncle all worked in the coal mines in Greene County. Stauffer tried to buck the family trend by enlisting in the national guard at 18. “I wanted to serve my country … there was no other jobs in Pennsylvania other than coal mining,” Stauffer told me. “My uncle was a coal miner. He said, ‘David, you don’t want to go to the mine.’”

Stauffer served as an air technician until he injured his knee on a fishing trip and was no longer able to serve. After he was discharged, he spent years working odd jobs—at the sheriff’s department in Waynesburg, at the mine as a security guard, driving trucks. But when his brother became ill and turned to Medicaid, he needed a full-time caregiver. “My brother is in a wheelchair for the rest of his life,” Stauffer said. “He needs a caregiver. I lost my job working security.”

He travelled some 200 miles to West Virginia because he’s worried about cuts to Medicaid. “Without Medicaid, [my brother] wouldn’t be able to survive,” Stauffer said. “He can’t have a job, because he has a medicine pump in his stomach … Trump’s hurting coal mining communities. He says he’s trying to help but he’s not. He’s harming us. And it’s wrong.”

*              *              *

Hector Vaca grew up in an immigrant family in New York City. “My parents had to work three jobs, each. Sometimes my dad had four jobs in order to raise four kids and just to keep a roof over our heads, continuing paying the mortgage,” he said.

“There was a time in my life when we lived on food stamps. This was before they were EBT, when they were still paper money,” said Vaca. “We’d have milk and bread in the fridge for like a day or two and we had to get creative with what we ate at the house … We couldn’t afford health insurance when we were little, so we depended on Medicaid.”

Image-1Hector Vaca

After the Great Recession hit, his father lost his job working as a car mechanic. Months later, he took his own life.

Vaca came to West Virginia because of his father’s death. “I do this … so that no other family would lose any more family members,” he told me. “We benefited from that system because we needed it, because my parents who were here with documentation worked hard and they deserved it.”

*              *              *

Coverage of policy debates, like most coverage of Trump and Congress, focuses mainly on the political consequences or the legislative jockeying. Little attention is given to the people affected—the organizer from West Virginia, the caretaker from Pennsylvania, or the proud son from North Carolina. Ignored is the shear breadth of economic challenges Americans face. According to a recent survey by the Center for American Progress,* 70 percent of voters reported having at least one serious economic challenge within the past year. Forty-two percent said they had trouble paying a credit card balance, and 48 percent of Americans said they had a serious problem “finding a decent job with good wages.”

Asked why so many people were protesting, Sammi Brown’s response was simple: “We have folks that are working multiple jobs. They’re doing everything they can—and they should have quality of life, but we’re not affording them that.”

Zahra Mion contributed reporting to this article.

*TalkPoverty is a project of the Center for American Progress.

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Paul Ryan’s Push for Workforce Development Is a Wolf in Sheep’s Clothing https://talkpoverty.org/2018/02/01/ryans-push-workforce-development-wolf-sheeps-clothing/ Thu, 01 Feb 2018 22:30:41 +0000 https://talkpoverty.org/?p=25132 Earlier today, Politico reported that House Speaker Paul Ryan (R-OH) appears to be attempting to repackage cuts to Medicaid, food assistance, and affordable housing as “workforce development.” If it were a sincere effort, the idea of offering more workforce development would make sense: It’s good for workers, and it’s actually a popular idea (Ryan himself has acknowledged that openly calling for Medicaid cuts was “not a great buzz phrase.”)  However, it seems that this is the latest rebrand of the same old proposals to slash essential benefits for struggling families that Ryan has touted for years.

It’s especially insincere, given the Trump administration’s proposal to gut existing workforce development programs. Its 2018 budget cut funding for the Workforce Innovation and Opportunity Act by 43 percent, which would cause 571,000 workers to lose job training and job search assistance. President Trump is also in the process of advancing an apprenticeship proposal that would lead to a proliferation of low-quality programs that don’t offer job-relevant skills or decent wages.

For his part, Ryan seems to be confused about what workforce development actually entails. He told his caucus last night that it needs to “focus on closing the skills gap” by training unemployed workers to take currently open jobs. This incorrectly assumes that a lack of skills is the only thing that’s keeping workers out of the labor market—it’s possible that workers are struggling to find good jobs that pay decent wages. Indeed, 2017 saw the slowest job growth since 2010, and the weakest wage growth in 4 years. Trump and congressional Republicans have also fought to make work worse by advancing policies to weaken workplace protections, make it harder for workers to collectively bargain, make it easier for employers to steal wages from tipped employees, and make it easier for employers to discriminate against workers.

If Speaker Ryan and congressional Republicans truly cared about helping people transition into the labor market, they would support policies like raising the federal minimum wage, strengthening collective bargaining rights, and advancing policies like paid leave and universal child care, which actually help improve the quality of work.

This is the latest rebrand of the same old proposals

Instead, participants at the GOP retreat where Ryan initially floated this idea reported that his proposal would impose work requirements on Medicaid recipients – of whom more than 7 in 10 are caregivers or in school. The move would put at least 6.3 million people at risk of losing their health care outright, and force others into low-quality, low-paying jobs that are more harmful than helpful.

Ultimately, this workforce development push, like welfare reform before it, is about kicking struggling workers while they’re down, and taking away essential benefits from families when they need them most. And while Ryan may have ditched the racially-coded welfare rhetoric for now, his policies are still ripped right from Trump’s divisive handbook.

 

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Why People Love ‘Assistance to the Poor’ But Hate ‘Welfare’ https://talkpoverty.org/2018/01/29/people-love-assistance-poor-hate-welfare/ Mon, 29 Jan 2018 21:28:11 +0000 https://talkpoverty.org/?p=25091 Last Spring, in a highly publicized meeting with members of the Congressional Black Caucus, President Donald Trump received some startling news. One of the members mentioned to Trump that pushing forward with “welfare reform” would be hurtful to her constituents, “not all of whom are black.”

“Really?” Trump replied. “Then what are they?”

Statistically, they were probably white. But given the United States’ history with the word “welfare,” it’s not all that surprising that Trump was confused.

Despite the fact that white Americans benefit more from government assistance than people of color, means-tested aid is primarily associated with black people and other people of color—particularly when the term welfare is used. For many Americans, the word welfare conjures up a host of disparaging stereotypes so strongly linked to stigmatized beliefs about racial groups that—along with crime—it is arguably one of the most racialized terms in the country.

White people's racial attitudes are the single most important influence on their views on welfare

Martin Gilens, a professor of political science at Princeton University, has studied the relationship between whites’ racial attitudes and their opinion on welfare extensively. In one study, he finds that white people’s racial attitudes are the single most important influence on their views on welfare. In other words, white people who are more prejudiced toward black people are also significantly more opposed to welfare. Numerous studies in the social sciences have substantiated this claim.

That has tremendous consequences for the types of policies that are proposed and passed. Public support for programs associated with the term welfare are generally weaker than support for other programs, like unemployment insurance, primarily because welfare is so strongly linked to the negative attitudes white people possess about black people. However, the public is willing to support redistributive benefits generally when they are not called welfare. For example, in 2014, 58 percent of white people thought that we are spending too much on welfare, whereas only 16 percent reported that we are spending too much on the poor.

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Source: Author’s analysis of 2014 General Social Survey data.

These same racial attitudes also structure the way policies are designed. They inform which groups we think are deserving of assistance, and which are not. Nicholas Winter, for instance, notes that part of why Social Security is so relatively popular compared to welfare is because of how both policies are racialized. Social Security, he argues, has been framed as a policy that is both universal—that is, it benefits all groups—and as one that has been contrasted with welfare as an earned reward for hard work (stereotypes associated with white people), rather than a handout for the lazy and dependent (stereotypes associated with black people).

In contrast, negative beliefs about the beneficiaries of programs we think of as welfare have arguably lead to a system of surveillance and sanctions. After Reagan popularized the disparaging stereotype of the

‘welfare queen’ In 1974, the Chicago Tribune began covering the case of Linda Taylor, who was charged with defrauding Illinois welfare programs. (Initial coverage claimed she had hundreds of aliases, defrauded the state of $200,000, and was responsible for kidnappings and working as a “voodoo doctor.” Later investigation found she had four aliases and defrauded the state of $8,000). Local journalists dubbed her the “welfare queen” during the first flurry of coverage. Instead of treating the case as an anomaly, Ronald Reagan used his 1976 run for president to turn Taylor into a caricature, arguing that everyone who received welfare was similarly likely to commit fraud. He leaned heavily on racist stereotypes of black women in his retelling of the story during campaign stops. Over the next decade, media outlets and fellow politicians seized on the idea that welfare was rife with fraud, and referred to all recipients with the racially charged language originally aimed at Taylor.

in the 1980s, Bill Clinton passed welfare reform policies that restricted access to benefits to satisfy racist attitudes. In addition to placing significant and often unfair burdens on the individuals seeking assistance, these restrictions—like required drug-testing of program applicants, restrictions on where benefits can be spent, and specifications on what types of work count toward required hours—relied on stereotypes and reinforced the belief that beneficiaries of these programs are undeserving. According to work by Joe Soss and Sanford F. Schram, more people believed that welfare benefits lead to dependency in 2003 than in 1989.

The media have played a significant role in establishing the link between poverty, welfare, and race in the public mind. According to Gilens, these trends were forged in the 1960s, when race riots drew the nation’s attention to the black urban poor. In just three years—from 1964 to 1967—the percentage of poverty news stories that featured images of black people grew from 27 percent to 72 percent. These trends have persisted in the present day.

But both Gilens’ and Winters’ work suggests that the media can also help promote anti-poverty legislation by avoiding racialized terms, like welfare, to talk about public assistance. But if they keep leaning specifically on the term welfare—as they have during Speaker Ryan’s recent push to cut anti-poverty programs by referring to them as “welfare reform”—then otherwise popular policies may be dragged down with the word’s racialized history.

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Everything You Wanted to Know About the 1996 Welfare Law but Were Afraid to Ask https://talkpoverty.org/2016/08/22/everything-wanted-know-1996-welfare-law-afraid-ask/ Mon, 22 Aug 2016 14:16:34 +0000 https://talkpoverty.org/?p=17123 Table of Contents

What’s TANF?
What’s a Block Grant?
Isn’t State and Local Control More Effective?
Does It at Least Help People Prepare for Work?
Why Does All This Matter?
So Where Do We Go From Here?

What’s TANF?

In 1996, Congress replaced the New Deal-era Aid to Families with Dependent Children (AFDC) with a new program called Temporary Assistance for Needy Families (TANF), under the guise of “ending welfare as we know it.”

The new law built on decades of anti-welfare sentiment, which Ronald Reagan popularized in 1976 with the racially-loaded myth of the “welfare queen.” In the two decades that followed, progressives and conservatives alike put forward reform proposals aimed at boosting work and reducing welfare receipt. Progressive proposals included expanded childcare assistance, paid leave, and tax credits for working families. Conservatives, on the other hand, tended to favor punitive work requirements—without any of the corresponding investments to address barriers to employment.

In 1996, after vetoing two Republican proposals that drastically cut the program’s funding, President Bill Clinton signed the Personal Responsibility and Work Opportunity Act into law. The new legislation converted AFDC into a flat-funded block grant—TANF—and sent it to the states to administer.

The law’s stated purpose was to move families from “welfare to work.” By that measure, supporters initially heralded TANF as a success during the strong, full-employment economy of the late 1990s. But too often, the narrative stops there, ignoring significant failings in the program that surfaced after the economy slowed down.

What is a block grant?

A block grant is essentially a pot of money that the federal government gives to state governments to administer a program subject to federal guidelines.

One of the key limitations of block grants is that they can lose value over time. The TANF block grant, for example, has been flat-funded at $16.5 billion since the law was first implemented 20 years ago. In other words, despite the rising cost of living, TANF’s funding hasn’t increased at all. As a result, it has lost more than one-third of its value since 1996, leaving fewer low-income families able to access the help they need. Fewer than one in four families with children living below the federal poverty line are helped by TANF today—down from more than two-thirds in 1996.

Another major limitation is that block grants are unable to respond to economic downturns. During the Great Recession, the number of families helped by TANF barely budged—the number of unemployed workers spiked by nearly 90%, but families able to access TANF only ticked up by 16%. TANF’s failure to respond to rising economic hardship not only hurts struggling families; it takes away a critical tool to lessen the impact of recessions.

Isn’t state and local control more effective?

Not in TANF’s case. There’s very little accountability with regard to how states must spend this money, so many states treat the program like a slush fund by diverting the funds to a range of other purposes—including closing budget gaps.

As a result, just 1 out of every 4 TANF dollars goes to income assistance for poor families with kids—policymakers, the public, and the media lack even the most basic information on where the rest of the funds go. By comparison, over 95% of Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) dollars go to helping struggling families purchase food.

Does it at least help people prepare for work?

Not well. Preparing people for work was one of the stated goals of the 1996 welfare law, but only 8% of TANF’s funding goes to employment preparation services. What’s worse, states aren’t actually required to track whether TANF recipients get jobs—employment isn’t even an outcome that gets measured (nor is poverty reduction, for that matter).

Conservatives claim the law gives states flexibility, but states face stiff constraints when it comes to helping participants prepare for and find work. For example, states aren’t allowed to provide “job search and job readiness assistance” for more than four consecutive weeks and six weeks in the entire year—no matter how hard someone is looking for work. In addition, vocational training only counts towards required work activity for 12 months. It’s no wonder that governors from both parties have requested greater flexibility in designing work programs for TANF.

Why does all this matter?

Great question. TANF’s shortcomings don’t just matter to the millions of poor families with kids who aren’t getting the help they need through the program. A full 70% of Americans will need to turn to the safety net at some point—whether it’s TANF, nutrition assistance, Supplemental Security Income, or Unemployment Insurance. Without these programs, our nation’s poverty rate would be nearly twice as high as it is today.

But despite TANF’s dismal record, many congressional Republicans want to model effective antipoverty tools, including nutrition assistance and housing aid, after TANF—by converting them to block grants.

In total, Speaker Ryan has called for ending 11 antipoverty programs—including housing assistance, food assistance, and child care—and combining them into a single block grant. Just like TANF, the funding would be fixed—making it woefully unresponsive to recessions or changes in the unemployment rate.

So where do we go from here?

To begin with, the federal government should require states to spend a certain share of TANF funds on the law’s core purposes—income assistance, child care, and work programs. Requiring states to spend even half of TANF funds on these priorities would ensure that more families get the help they need. We should also hold states accountable for meaningful outcomes such as actually helping TANF recipients get jobs, and reducing poverty.

In addition, Congress should stop rewarding states for ending aid to families in need. Right now, states receive a so-called “caseload reduction credit” for reducing the number of people they help—regardless of whether they have jobs when they leave the program. In effect, instead of giving states incentives to provide needed assistance, we’re doing the opposite.

We also need to increase benefits so that families can meet their basic needs. In no state are benefits equal to even half the austere federal poverty level (the maximum benefit was about $10,000 per year for a family of three in 2015).

Strengthening TANF is critical to ensure that our nation’s safety net provides adequate protection against life’s unpredictability. But it is just one part of a broader antipoverty agenda.

Building an economy that works for everyone—not just the wealthy few—will require creating good jobs and ensuring a living wage; adopting work-family policies that ensure parents are not forced to choose between work and caregiving; putting childcare and high-quality education within reach for all families; and removing barriers to opportunity so that all families have the opportunity to succeed.

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Rep. Doggett: ‘It’s Time to Fix the Broken Welfare System’ https://talkpoverty.org/2016/08/22/rep-doggett-time-fix-broken-welfare-system/ Mon, 22 Aug 2016 13:07:08 +0000 https://talkpoverty.org/?p=17111 Twenty years ago today, legislation promising to “end welfare as we know it” became law.  I voted for that bill, which created a program called Temporary Assistance for Needy Families (TANF).  I believed that it would help more people move from welfare to good-paying, long-term jobs that would support families and reduce poverty.

Unfortunately, the program has failed to deliver on its promise, and it has left some families in even worse condition.

Since TANF was signed into law in 1996, the number of children living in extreme poverty—defined as no more than $2 per person per day—has doubled, from 1.4 million to 2.8 million children. That’s evidence of a failed approach, not a successful model we should apply to other federal programs, as many Republicans would now like to do.

Our country is capable of developing a system that will create brighter futures for poor families with children; ensuring a robust safety net for families when they can’t work; and preparing impoverished parents to succeed in today’s labor market.

To achieve these goals, here’s what we need to do:

First, we must hold states accountable for properly spending the funding they get from Washington. A key premise underpinning TANF was that if states were given more flexibility they would do a better job providing families with a strong safety net when they can’t work and they need help to obtain a good job.  But two decades of evidence has shown that when states get a pot of money accompanied by few federal standards, they will act in their elected leaders’ self-interest, not in the interest of poor children and their families.

The TANF block grant has thus become welfare for states.

The TANF block grant has thus become welfare for states. Most of them use the money once provided directly to poor families to instead plug state budget holes—some of which were created when these same states enacted tax cuts that mostly benefit the wealthy. In 2015, states spent only about half of their TANF funds on the program’s core purposes—work preparation, child care, and direct assistance. My own state of Texas, which so often neglects disadvantaged children, spent less than 14 cents of every TANF dollar towards these ends. Nationwide, states are spending only about 1 cent of every TANF dollar on education and training for recipients to find long-term and good-paying employment.

That’s not what Congress envisioned, and we need to ensure meaningful accountability.

Second, we need to eliminate provisions that restrict access to the education and training that low-income parents need to succeed. TANF recipients—mostly single parents raising their children—should not be denied the opportunity to pursue education and training that will prepare them for better jobs.  And yet, in many states a parent receiving TANF assistance would not be able to attend a community college or university to obtain the skills they need for a family-supporting career. Instead they might be forced into a for-profit job-training program in a low-wage industry, or a work assignment with no promise of upward mobility.

Preparing disadvantaged individuals for jobs that are in demand offers significant long-term payoffs. For example, Project Quest in San Antonio has enabled many individuals to escape poverty by training for in-demand jobs that pay a living wage, in sectors such as health care and bioscience, information technology and security, and aerospace. We need to ensure that struggling individuals have access to those kinds of high-quality opportunities.

By 2014, TANF reached just 23 of 100 poor families.

Third, we need to hold states accountable for providing a safety net for families who either can’t work or can’t find work. The 1996 welfare law contained a number of incentives for states not to serve families who need cash assistance—and states have responded by serving fewer and fewer. In 1996, for every 100 families with children living in poverty, 68 received cash assistance. By 2014, TANF reached just 23 of 100 poor families. Texas is one of a dozen states that provide income assistance to less than one in ten poor families with children.

Moreover, the value of TANF funding has fallen by more than one-third since 1996 because it was never adjusted for inflation. We must therefore provide more, and change the incentives so that states are encouraged to assist more families—those who are able to transition to work, and those who need assistance because they are unable to work.

TANF was enacted 20 years ago on a bipartisan basis.  It’s past time for us to revisit the law and improve it on a bipartisan basis as well.  Unfortunately, congressional Republicans continue to reject any genuine change, content to talk about reform but offering only kinder talk with less help. Indeed, Speaker Ryan would double-down on this broken system to make other types of assistance—such as housing and nutrition—even harder for struggling families to obtain.

We need to heed the lessons of the past two decades and create a new approach—one that will truly put good jobs within reach, while strengthening the safety net to keep families from falling into poverty when they are experiencing hard times.

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