Opening Statement of the Hon. Wally Herger, a Representative in Congress from the State of California,
and Chairman, Subcommittee on Human Resources

Hearing on Implementation of Welfare Reform Work Requirements and Time Limits

March 7, 2002

Good morning.  Today’s hearing will provide an important backdrop as we consider key features of the nation’s welfare reform program, namely work requirements and time limits on benefits. 

Welfare reform has been a tremendous success in reducing welfare caseloads and moving millions of families out of poverty through increased work.  We know that nearly 3 million children have been lifted from poverty since 1996, with the black child poverty rate now at a record low; employment by mothers most likely to go on welfare rose by 40% between 1995 and 2000; and welfare caseloads have fallen by 9 million -- from 14 million recipients in 1994 to just 5 million today.

These changes are without precedent.  The 1996 law has made phenomenal progress, but there’s still work to do.

I know many people will be surprised to learn that we don’t require every welfare recipient to work or at least prepare for work today.  In the year 2000, only 34 percent of the national caseload was engaged in any of a broad range of work activities including education and training for at least 30 hours per week.  In some states, that figure is as low as 6 percent.  According to HHS’ most recent annual report, an astonishing 57.6 percent of families on welfare are doing nothing to prepare for work while receiving benefits. 

That’s just not good enough. 

I congratulate the President for proposing changes that will reinforce the pro-work message for many more individuals on welfare.  Work is the only real path out of poverty, and only through helping more people work will we get the rest of the job done. 

As we press on with further reforms, there are a number of issues we need to understand about how work requirements and time limit policies are working in practice.

One set of issues involves what are called “child-only” cases.  Work requirements and time limits do not apply in these cases – which represent more than one-third of the current caseload and the share is rising. 

Other issues stem from separate state-funded TANF programs that exclude some participants from federal work requirements or time limits.  I asked the General Accounting Office last year to provide us with some information about how these separate state programs affect the work participation targets and time limits.  They will share their findings with us today.

A final set of issues involves the time limits included in the 1996 law.  The 1996 law expected families to receive no more than 5 years of federal cash benefits, with up to 20 percent of the caseload exempted for hardship.  The need for this change was clear.  Prior to 1996 the average lifetime of then-current welfare recipients was an incredible 13 years.  Welfare had become a trap, plain and simple. 

Today we will review how time limits have worked in practice.  We will find that the vast majority of parents left welfare prior to their “clock” expiring.  For these families, the time limit worked as intended to motivate both recipients and caseworkers to address family needs quickly and help recipients find and keep jobs.  In a significant number of other cases, including child-only cases and those receiving assistance under separate state programs, families effectively have been exempted from the time limit altogether. 

Joining us today to provide perspective on how work requirements and time limits are applied in practice are distinguished researchers from the public and private sectors, along with state and local program leaders.  We also are joined by Marge Thomas of Goodwill Industries and one of Goodwill’s success stories, Ms. Fatima Wilkerson, to describe how parents with special challenges can succeed in the workforce.  We look forward to hearing from all of our witnesses.

Mr. Cardin, would you care to make an opening statement?