ADVISORY
FROM THE COMMITTEE ON WAYS AND MEANS

SUBCOMMITTEE ON HUMAN RESOURCES

Herger Announces Hearing on Implementation of Welfare Reform
Work Requirements and Time Limits

Congressman Wally Herger (R-CA), Chairman, Subcommittee on Human Resources of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on State implementation of Federal welfare work requirements and time limits, which are key features of the 1996 welfare reform law. The hearing will take place on Thursday, March 7, 2002, in room B-318 Rayburn House Office Building, beginning at 9:30 a.m.

In view of the limited time available to hear witnesses, oral testimony at this hearing will be from invited witnesses only. Witnesses will include representatives of the U.S. General Accounting Office, researchers, and other experts in welfare reform implementation issues. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee and for inclusion in the printed record of the hearing.

BACKGROUND:

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193), commonly referred to as the 1996 welfare reform law, made dramatic changes in the Federal-State welfare system designed to aid low-income American families. The law repealed the former Aid to Families with Dependent Children (AFDC) program, and with it the individual entitlement to cash welfare benefits. In its place, the 1996 legislation created a new Temporary Assistance for Needy Families (TANF) block grant that provides fixed funding to States to operate programs designed to achieve several purposes: (1) provide assistance to needy families, (2) end the dependence of needy parents on government benefits by promoting job preparation, work, and marriage, (3) prevent and reduce the incidence of out-of-wedlock pregnancies, and (4) encourage the formation and maintenance of two-parent families.

In exchange for the broad flexibility and fixed funding granted States, the 1996 law imposed certain key program requirements, notably work requirements and time limits on Federal benefits.

Work Requirements. In order to assist in the conversion of the old AFDC program to a program focused on work, the 1996 law required States to engage a specific and rising percentage of their welfare caseload in work or certain work activities each year; States that fail to satisfy this requirement lose Federal funds. States receive "credits" toward satisfying this work requirement to the degree their caseload declined from earlier levels. Given large caseload declines under welfare reform, this "caseload reduction credit" has sharply reduced the effective work requirement in all States, and eliminated it in most States. Other factors, including the large and growing share of families receiving assistance considered "child only" cases and the operation of separate State programs not subject to Federal work requirements, have further limited the impact of the 1996 law's work requirements.

Time Limits. Prior to the 1996 changes, average lifetime stay on welfare reached 13 years. The 1996 law sought to reduce such long-term dependence on benefits by establishing a 5 year lifetime limit on receipt of Federal cash welfare benefits, with up to 20 percent of a State's caseload exempted for hardship in any year. A number of States also have created separate States programs to provide continued cash benefits after 5 years for families that remain in need of assistance.

In announcing the hearing, Chairman Herger stated:"Welfare reform has been a tremendous success. We've increased work and earnings, reduced dependence, and lifted almost three million children from poverty. The 1996 law's work requirements and time limits have played major roles in this transformation. Still, more can be done. As we reauthorize the welfare reform law this year, we will take steps to help even more families on welfare better prepare for work and a lifetime of independence."

FOCUS OF THE HEARING:

This hearing will focus on issues related to the implementation of welfare work requirements and time limits in preparation for the reauthorization of the TANF program, which expires on September 30, 2002.

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS:

Please Note: Due to the change in House mail policy, any person or organization wishing to submit a written statement for the printed record of the hearing should send it electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to 202/225-2610, by the close of business, Thursday, March 21, 2002. Those filing written statements who wish to have their statements distributed to the press and interested public at the hearing should deliver 200 copies to the Subcommittee on Human Resources in room B-317 Rayburn House Office Building, in an open and searchable package 48 hours before the hearing. The U.S. Capitol Police will refuse sealed-packaged deliveries to all House Office buildings.

FORMATTING REQUIREMENTS:

Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.

1. Due to the change in House mail policy, all statements and any accompanying exhibits for printing must be submitted electronically to hearingclerks.waysandmeans@mail.house.gov, along with a fax copy to (202) 225-2610, in Word Perfect or MS Word format and MUST NOT exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.

2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.

3. Any statements must include a list of all clients, persons, or organizations on whose behalf the witness appears. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers of each witness.

Note: All Committee advisories and news releases are available on the World Wide Web at http://waysandmeans.house.gov.

The Committee seeks to make its facilities accessible to persons with disabilities. If you are in need of special accommodations, please call (202) 225-1721 or (202) 226-3411 TTD/TTY in advance of the event (four business days notice is requested). Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above.