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Overview of the
1996 Welfare Reform Law:
• Temporary Assistance for Needy Families Program
• Reduction of Nonmarital Births
• Supplemental Security Income for Children
• Child Support Enforcement
• Welfare for Noncitizens
• Child Care
The Brookings Institution, Washington, D.C.
www.brookings.edu
Overview of Temporary Assistance for Need
Families Program:
• Elimination of cash welfare entitlement
• Block grant funding
• Work participation standards
• Sanctions
• 5-year time limit
The Brookings Institution, Washington, D.C.
www.brookings.edu
Provisions in Welfare Reform Law
Designed 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
The Brookings Institution, Washington, D.C.
www.brookings.edu
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
The Brookings Institution, Washington, D.C.
www.brookings.edu
The Brookings Institution, Washington, D.C.
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
1973
1971
1969
1967
1965
1963
1961
1959
Millions of Families
AFDC/TANF Caseload, 1959-1999
6
5
4
3
2
1
0
Year
www.brookings.edu
Family Income from
Welfare vs. Low-Wage Work
Welfare
Aid to Families with
Dependent Children
Food Stamps
Work
$4,500
$3,500
$8,000
The Brookings Institution, Washington, D.C.
Earnings
Earned Income Credit
Food Stamps
$10,000
$3,500
$2,000
$15,500
www.brookings.edu
Percentage of Married, Single,
and Never-Married Mothers Working,
1985-1999
75
Married Mothers
70
Single Mothers
Percentage of Mothers Working
Never Married
65
60
55
50
45
40
35
85
86
87
88
89
Source: Gary Burtless, The Brookings Institution, 2000
90
The Brookings Institution, Washington, D.C.
91
92
93
Year
94
95
96
97
98
99
www.brookings.edu
Average Income of Female Family Heads
with Children in the Bottom Fifth
of Post-Tax Income, 1993-99
$8,000
$7,800
$7,600
Total Income
$7,400
$7,200
$7,000
$6,800
Source of Income
Earnings
Cash Welfare
Food Stamps
Child Support
EITC
Other
Total
$6,600
$6,400
$6,200
1993
1,331
2,107
1,276
253
209
1,535
6,711
1993-1999
in $ in %
+1,086 + 82
- 889 - 42
- 288 - 23
+ 112 + 44
+ 507 +243
+ 367 + 24
+ 895 + 13
1999
2,417
1,218
988
365
716
1,902
7,606
$6,000
1993
1994
1995
1996
1997
1998
1999
Year
The Brookings Institution, Washington, D.C.
www.brookings.edu
Average Income of Female Family Heads
with Children in the Second Fifth
of Post-Tax Income, 1993-99
$17,000
$16,500
$16,000
Total Income
$15,500
$15,000
$14,500
$14,000
Source of Income
Earnings
Cash Welfare
Food Stamps
Child Support
EITC
Other
Total
$13,500
$13,000
$12,500
1993
4,815
3,099
1,684
446
678
2,479
13,201
1999
9,603
1,361
810
540
1,973
1,732
16,019
1993 - 99
in $ in %
+4,788 + 99
-1,738 - 56
- 874 - 52
+ 94 + 21
+1,295 +191
- 747 - 30
+2,818 + 21
$12,000
1993
1994
1995
The Brookings Institution, Washington, D.C.
1996
Year
1997
1998
1999
www.brookings.edu
Welfare Caseloads and Child Poverty
Decline Simultaneously,
1995-1999
Year
Percentage Decline
0
1995
1996
1997
1998
1999
-5
-10
-15
-20
Welfare Caseload
Child Poverty
-25
Black Child Poverty
The Brookings Institution, Washington, D.C.
www.brookings.edu
Decline in Child Poverty by Broad
Definition, 1983-89 and 1993-99
40
35.5
Percent in Poverty or Decline
35
30
25
21.3
20
20.0
18.0
15.5
15
12.9
10
5
0
1983
1989
The Brookings Institution, Washington,Year
D.C.
Source: Bureau of the Census
1993 1999
1980s
1990s
Decline
www.brookings.edu
Support for Working Families
Increases Dramatically between 1984 and 1999
50
Child Care
Billions of 1999 Dollars
CHIP
40
Child Credit
Medicaid
30
EIC
20
10
0
Spending in 1999 under:
1984 Law
1999 Law
Source: Congressional Budget Office
The Brookings Institution, Washington, D.C.
www.brookings.edu
Number of Births, Birthrate, and Percent of Births
to Unmarried Women: United States, 1940-99
Births in 1000's
70
1400
Number
!!
of births! ! ! ! ! !
!
60
1200
!
!
50
1000
!
**
!
*
**
****
!
*
*
Birth
!
40
800
!
*
rate
!
*
!
*
!!
*
######
#
30
600
#
! *****
#
#
!
*
#
* * * * **
!
*
## Percent
*
*
*
*
*
**
!
#
*
*
**** **
##
!!
*
20
!
400
#
!
!
!
#
*
#
*
#
!
!!
**
###
!
*
#
!
#
*
!
###
***
!!!
#
!
!
*
#
!
10
200
*
!
#
!!
##
*
!
#
*
!
*
*
#
!
!
*
!!!!!!
###
#! #! #! #! #! #################
0
0
1940
1950
1960
1970
1980
1990
1999
Percent unmarried
Births per 1,000 unmarried women
SOURCE: National Center for Health Statistics.
The Brookings Institution, Washington, D.C.
www.brookings.edu
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
63
62
61
60
59
58
57
56
55
54
53
52
51
50
49
1980
Rate per 1,000 Women
Teen Birthrate, 1980-1998
Year
The Brookings Institution, Washington, D.C.
www.brookings.edu
Number of Children Receiving SSI
Benefits, 1985-2000
1200000
Number of Children
Receiving SSI
1000000
800000
600000
400000
200000
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
0
Year
The Brookings Institution, Washington, D.C.
www.brookings.edu
Child Support Collections in Billions
Child Support Collections Are Up
$20
$18
$16
$14
$12
$10
$8
$6
$4
$2
$0
18.0
9.8
1994
The Brookings Institution, Washington, D.C.
2000
Year
www.brookings.edu
Number on Welfare (thousands)
Number of Noncitizen Families in
Selected Welfare Programs,
1995 and 1999
2000
1800
1600
1400
1200
1000
800
600
400
200
1995 1999
Medicaid
1995 1999
Food Stamps
1995 1999
1995 1999
TANF
SSI
Program and Year
The Brookings Institution, Washington, D.C.
Source: Urban Institute tabulations of current population source data
www.brookings.edu
Federal Spending on Child Care,
1985-2000
Expenditures (Billions, 1999)
16
14
12
10
8
6
4
2
0
Year
Source: Besharov & Germanis, American Enterprise Institute
Note: Includes Head Start, Child and Adult Feeding Programs, Title XX Block Grant, old AFDC Programs,
Child Care
and Development
Grant,
and Temporary Assistance for Needy Family
Funds
The Brookings
Institution, Block
Washington,
D.C.
www.brookings.edu