Committee on Ways and Means 

For Immediate Release
Contact: Press Office 202-225-8933
August 20, 2002

Creating Exceptions to Real Work Requirements: A key to the success of the 1996 welfare reform law is its focus on expecting welfare recipients to work. This change has resulted in a record rise in the share of current and former Temporary Assistance to Needy Families (TANF) recipients who are working. The House-passed welfare reauthorization bill promotes and supports even more work by recipients. The Senate Finance bill includes two-dozen features that would allow more education and other activities to count as work, resulting in less real work by welfare recipients.

1. 101 Provides supplemental grants to more States based on less work and earnings.

2. 105(e) Creates new program allowing college to count as work for up to 6 years.

3. 105(e) Allows 8 hours of college and 16 hours of study to fulfill work requirement for 2 years.

4. 105(e) Allows, after 2 years, 10 hours of college and 20 hours of study to fulfill work requirement.

5. 201(a) Creates new barriers to sanctioning TANF recipients who refuse to work.

6. 201(b)(1) Creates new “model screening and assessment tools” to highlight barriers to work.

7. 201(b)(2) Creates new Federal bureaucracy highlighting barriers instead of work opportunities.

8. 202(c)(1) Allows unlimited exceptions to work rate if States meet 2 contingency fund triggers.

9. 202(c)(2) Provides partial work credit for families with 15+ hours per week in work activities.

10. 202(c)(3) Removes from work rate calculation TANF recipients who become eligible for SSI.

11. 202(c)(4) Allows States to count child care or transportation recipients in work rate calculation.

12. 202(d) Fails to increase hours of work activities from 30 to 40, as House bill provides.

13. 202(e) Counts new “rehabilitative services” as work for up to 6 out of any 24 months.

14. 202(f) Increases from 6 to 8 weeks job search counting as work.

15. 202(g)(1) Increases from 1 to 2 years vocational education and training counting as work.

16. 202(g)(1) Adds “postsecondary education” to activities that count as work (for up to 2 years).

17. 202(h) Allows States to exempt from work requirement caregiver of a disabled family member.

18. 202(i) Creates new exception to Federal penalty for States failing to satisfy work rate requirements.

19. 704 Creates new business partnership program allowing 10 hours to fulfill work requirement.

20. 706 Exempts individuals receiving new “at home infant care program” benefits from work.

21. 707 Exempts individuals receiving new “housing demonstration” benefits from work.

22. 711(a) Allows any State to continue a waiver creating exceptions to work requirements.

23. 711(b) Allows any State to copy other waivers creating exceptions to work requirements.

24. 712 Creates multiple new barriers to placing individuals in work experience positions.

Increasing Poverty by Promoting More Welfare Dependence: Various work and related provisions in the 1996 welfare reform law resulted in a more than 50 percent welfare caseload reduction as millions of families left or stayed off welfare. The House bill updates and strengthens such provisions, urging more work, further caseload reduction, and less poverty. The Senate Finance bill reverses those incentives, including 23 methods of promoting more and longer welfare stays, leading to increased dependence and thus increased poverty.

25. None Drops House provision adding “reducing poverty” as TANF purpose.

26. 102(a) Provides Federal contingency fund payments based on increase in welfare caseloads.

27. 102(b) Provides added Federal contingency fund payments if food stamp caseloads rise.

28. 102(b) Allows food stamp policy changes to trigger Federal contingency fund payments.

29. 102(b) Adds new contingency fund trigger based on increase in welfare caseloads.

30. 102(b) Considers seasonal variations in food stamp caseloads in providing contingency funds.

31. 102(b) Considers seasonal variations in welfare caseloads in providing contingency funds.

32. 105(e), 202(g) Allows 6 years of college to count as work, promoting longer welfare stay.

33. 105(f) Exempts TANF-funded housing benefits from counting towards 5-year limit.

34. 201(a) Creates new barriers to sanctioning TANF recipients, encouraging longer welfare stays.

35. 202(c)(1) Creates new employment credit encouraging larger caseloads and thus more “leavers”.

36. 202(c)(1) Provides extra credit for leavers with higher earnings, prompting longer stays.

37. 202(c)(1) Eliminates caseload reduction credit.

38. 202(e) Adds new category of rehabilitative services that can count as work for 6 months.

39. 202(f) Increases from 6 to 8 weeks job search counting as work.

40. 202(g)(1) Increases from 1 to 2 years vocational education and training counting as work.

41. 202(g)(1) Allows postsecondary education to count as work for up to 2 years.

42. 601(f) Increases time limit exemptions in tribal TANF program.

43. 704 Exempts new business partnership benefits from counting toward 5-year limit.

44. 706 Exempts new at home infant care benefits from counting toward 5-year limit.

45. 707 Exempts new housing demonstration benefits from counting toward 5-year limit.

46. 711(a) Allows States to continue current waivers creating exceptions to 5-year limit.

47. 711(b) Allows any State to copy other State waivers creating exceptions to 5-year limit.

Busting the Budget by Encouraging More Spending: The 1996 welfare reforms achieved tremendous successes - lifting nearly 3 million children from poverty, producing record rises in work and job preparation among current and former recipients, and cutting welfare dependence in half. It also achieved billions of dollars in savings by slowing spending growth and better targeting benefits. The House bill continues this fiscal discipline by maintaining current TANF funding levels and fully offsetting the cost of added child care funds provided to help more parents go to work. In contrast, the Senate Finance bill busts the budget with 51 features that accelerate current spending or create new welfare programs. In total, the Senate Finance bill calls for $10 billion in new spending - 14 times the new spending proposed (and paid for) under the House bill.

48. 101 Increases supplemental grants to States.

49. 101 Provides supplemental grants to States that already have relatively high TANF grants.

50. 102(a) Increases Federal share of contingency fund payments.

51. 102(a) Increases Federal contingency fund payments if States provide larger benefits.

52. 102(b) Lowers unemployment rate trigger for easier access to contingency funds.

53. 102(b) Lowers food stamp trigger for easier access to contingency funds.

54. 102(b) Allows food stamp policy changes to trigger contingency fund payments.

55. 102(b) Continues contingency fund payments even if unemployment rate is falling.

56. 102(b) Considers seasonal variations in food stamp caseloads in determining eligibility.

57. 102(b) Bars payment of contingency funds if States save TANF funds.

58. 102(d) Eliminates Federal penalty for failing contingency fund MOE requirement.

59. 103(a) Provides additional child care funds for Puerto Rico.

60. 103(a) Increases Federal child care funds by $5.5 billion over 5 years.

61. 104(a) Expands TANF benefits to noncitizens.

62. 104(b) Deems only support provided by sponsor to noncitizen in determining eligibility.

63. 104(b) Deems sponsor income and resources only to family member receiving support.

64. 104(c) Expands types of noncitizens eligible for State benefits.

65. 105(b) Creates exception to cap on administrative spending when States transfer funds.

66. 105(d) Allows transfer of TANF funds for access to jobs or reverse commute projects.

67. 105(f) Allows more TANF spending on housing by not counting benefits as assistance.

68. 105(f) Allows TANF spending on minor rehabilitation of housing.

69. 107(a) Counts added child support arrearage payments towards MOE requirements.

70. 108(a)(1) Increases Federal funding for Puerto Rico.

71. 108(a)(2) Increases Federal funding for Guam.

72. 108(a)(3) Increases Federal funding for the Virgin Islands.

73. 108(a)(4) Increases Federal funding for American Samoa.

74. 110(b) Increases Social Services Block Grant funding by $252 million.

75. 201(b)(2) Creates new $120 million grants for welfare staff training and welfare benefit outreach.

76. 302(b) Creates new $250 million abstinence “plus” grant program.

77. 303 Creates new $25 million national teen pregnancy resource center.

78. 304(a) Creates new $100 million non-custodial parent employment grant program.

79. 304(b) Creates new $100 million non-custodial parent demonstration project program.

80. 305 Creates new $132 million grant program for second chance homes.

81. 401 Extends transitional medical program for five years and expands length of benefits.

82. 402(a) Expands medical coverage for non-citizen pregnant women and children.

83. 402(a) Exempts sponsors from repaying cost of expanded medical coverage for non-citizens.

84. 403 Allows use of State funds for health benefits for illegal immigrants.

85. 505 Creates new $50 million child support review and administrative funding program.

86. 601(b) Creates new $35 million tribal TANF capacity grants.

87. 601(b) Creates new $35 million tribal TANF development grants.

88. 601(b) Creates new $5 million tribal TANF technical assistance fund.

89. 601(c) Creates new $25 million set-aside in contingency fund for tribes.

90. 601(d) Creates new $148 million tribal job training program.

91. 602 Allows tribes to receive open-ended entitlement funds for foster care and adoption.

92. 703(a) Creates new $75 million set-aside in TANF for advisory panel on child well-being.

93. 703(c) Creates new $2 million set-aside in TANF for research on tribal welfare programs.

94. 704 Creates new $1 billion innovative business link partnership grant program.

95. 705(a) Creates new $75 million grant program for purchase and maintenance of cars.

96. 705(b) Allows TANF funds in individual development accounts to purchase or maintain a car.

97. 706 Creates new $150 million at home infant care program.

98. 707 Creates new $50 million grant program for housing for families with multiple barriers.

Failing to Promote Stronger Families and Marriage: The 1996 welfare reform law included several purposes devoted to strengthening families and promoting marriage. To date, State efforts in this area have been limited. Thus the President proposed and the House included dedicated funds to support voluntary education and other services designed to strengthen families and improve child well-being. The Senate Finance bill not only cut the amount of funding proposed, but opened this dedicated funding up to broad welfare purposes, likely guaranteeing it would not be spent on pro-marriage activities.

99. 301 Reduces funds available for marriage promotion by $50 million below House bill.

100. 301 Allows funds to be used for “broad-based” support unrelated to family structure.

101. 708 Allows teens to again qualify for welfare if they live alone and do not stay in school.

BACK to Committee on Ways and Means